Financial Daily from THE HINDU group of publications
Saturday, Jul 26, 2003
Financial Daily from THE HINDU group of publications Saturday, Jul 26, 2003 |
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Money & Banking
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Private Banks Retail shift takes Centurion to profit Our Bureau
Mumbai , July 25 WITH a shift to retail assets from corporate and lower cost funds, Centurion Bank has come back to the black with a net profit of Rs 40 lakh for the quarter ended June 30, 2003 as against a net loss of Rs 3.66 crore during the corresponding period of the previous year. In the last quarter of the previous fiscal, the bank had posted a net loss of Rs 11 crore. For the full-year ended March 31, 2003, the bank had registered a net loss of Rs 25.36 crore. The net interest income for the quarter was higher at Rs 25.96 crore (Rs 17.82 crore). Other income of the bank declined to Rs 16.81 crore (Rs 24.91 crore). The bank was pursuing a conscious policy decision to shift from lower yielding corporate loans to higher yielding retail assets, said the bank in a press release today. Disbursements in financing of two wheelers, commercial vehicles and construction equipment are expected to continue to be strong. Side by side, personal loans are also expected to gain momentum. Total income of the bank came down to Rs 94.28 crore (Rs 121.42 crore) and total expenditure too dipped to Rs 89.78 crore (Rs 113.62 crore). Adopting the 90-day norm in the recognition of NPAs, provisions and contingencies towards bad loans stand at Rs 4.10 crore (Rs 11.46 crore). The capital adequacy ratio of the bank is as low as 2.03 per cent (4.05 per cent), way below the mandatory minimum of 9 per cent. With regards to the takeover of management control by Sabre Capital and the proposal for capital infusion in the bank, the Goa Bench of the Bombay High Court has fixed August 22 as the date of hearing and final disposal of the petition. This follows shareholders having approved the plan at a meeting held on June 14 in Panaji, the registered office of the private sector bank. Two representatives from Sabre Capital, Mr Rajiv Maliwal and Mr Nigel Kenny, have joined the board of the bank; a senior executive, Mr Ravi Behl, has been appointed to oversee the day-to-day activities of the bank. The present Chairman and Managing Director, Mr V. Janakiraman's term lasts till January 3, 2004; Mr Rana Talwar, founder of Sabre Capital, is expected to take over from him. The bank is in the process of doing a due diligence of BankMuscat and a valuation will be arrived at in the coming weeks. The merger of the foreign bank with Centurion Bank awaits approval from the Karnataka High Court.
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