The Hindu Business Line : Central Bank gets nod for IPO

Mumbai April 23 Central Bank of India plans to hit the domestic capital market with an initial public offering by June this year. The bank will issue 80 million shares with a face value of Rs 10 each, said a senior official from the bank.

"We have got permission (from the Government) for the equity issue," said Ms H.A. Daruwalla, Chairperson and Managing Director, Central Bank of India.

According to Ms Daruwalla, the Government holding after the IPO will come down to about 80 per cent from 100 per cent.

The lead bank managers for the issue will be ICICI Securities, IDBI Capital Market Services and Enam Securities among others. Premium will be decided by lead bank managers. The bank will soon file its red herring prospectus with the SEBI.

The bank has posted a 93.77 per cent growth in net profit to Rs 498 crore for the year ended March 31, 2007 against Rs 257 crore for the corresponding period last year.

The bank has recorded a 28.94 per cent growth in total business as on March 31, 2007 from Rs 1,05,678 crore last year to Rs 1,36,265 crore.

The total deposits grew by 24.51 per cent to Rs 82,776 crore as against last year's Rs 66,483 crore. The net interest income is up 3.96 per cent to Rs 2,474.42 crore from last year's Rs 2,380.07 crore.

Gross advances have grown 36.47 per cent to Rs 53,489 crore as on March 31 as compared to Rs 39,195 crore last year. The net NPA ratio has improved to 1.70 per cent (2.59 per cent) this year.

The capital adequacy ratio has dropped from 11.03 per cent last year to 10.40 per cent.

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Central Bank gets nod for IPO