The Hindu Business Line : Central Bank goes slow on personal loans

Central Bank of India’s net profit for the half year ended September 30, 2007 went up by 3.26 per cent at Rs 222 crore against Rs 215 crore for the corresponding half-year period of the previous fiscal. “There has been only a moderate growth in our net profit as we took a conscious decision of rebalancing our credit portfolio, especially in the real estate sector,” said Ms H A Daruwalla, Chairperson and Managing Director, Central Bank of India.

Ms Daruwalla said that the bank has moved away from giving personal loans. The net interest income decreased by 2.15 per cent at Rs 1138 crore (Rs 1163 crore). The net interest margin was at 2.73 per cent (3.19 per cent).

The net non-performing assets of the bank were at 1.41 per cent (2.11 per cent). “We have taken a conscious decision to control and monitor the NPAs,” said Ms Daruwalla. The capital adequacy ratio is at 12.38 per cent (11.52 per cent).

The CAR increased to 12.38 per cent due to the increase in capital due to the initial public offering. The ratio was at 10.4 per cent as on March 2007.

“We want our capital adequacy to be well above 12 per cent,” said Ms Daruwalla.

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