MUMBAI, June 25: Central Bank of India has recorded a net profit of Rs 175 crore in the fiscal 1998 as against Rs 151 crore recorded in the previous year. The bank's operating profit has gone up by over 28 per cent from Rs 264 crore in 1996-97 to Rs 339 crore during the fiscal 1997-98.But the bank balance sheet continues to be plagued by abnormal level of non-performing assets (NPAs). The bank which had a gross NPA of Rs 2,520 crore (25.08 per cent of the advances) last year has been able to recover and upgrade Rs 385 crore during the current year thereby decreasing the level of net NPA to net advances down to 12.21 per cent as at March 1998 as against 14.40 per cent in the previous year. ``We have requested Government of India to pardon us from paying any dividend in 1997-98,'' said K C Chowdhary, Chairman & Managing Director.
The bank was able to reduce the net NPA by writing off a whopping Rs 75 crore. Last year the bank had written off another Rs 49 crore to reduce the NPA level. Even after allthese exercises the bank's NPA continues to be far above the 8 per cent minimum stipulated by the Reserve Bank of India. The bank has drawn up plans to reduce the net NPA below 9 per cent.
The total business of the bank increased from Rs 31,841 crore to Rs 37,051 crore during the year. The bank's deposit level increased by Rs 3,322 crore to Rs 26,373 crore and the total credit increased from Rs 8,790 crore as on March 31, 1997 to Rs 10,678 crore as on March 31, 1998. The bank's investment in bonds, debentures and commercial papers of the private corporate sector stood at Rs 1420 crore showing an increase of Rs 647 crore.
``The asset quality of our portfolio is very good. There has not been even a single case of default in interest or principal repayment,'' said the chairman about the spate of such instruments downgraded by various rating agencies.
Admitting that the bank's credit card business has been facing some problems, the chairman said that there is no move to close down the card business. ``Letme clarify that it (card business) was not doing very well. Central Bank has about 65,000 card holders and the monthly turnover from the card business is Rs 150 crore. The NPA in the credit card business is not more than Rs 30 crore,'' he claimed.
The bank's priority sector advances stood at Rs 4396 crore (41 per cent of net credit). More than Rs 453 crore was disbursed to agricultural sector as against Rs 301 crore last year.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
