The Hindu Business Line : Central Bank of India first half net falls

CENTRAL Bank of India has reported a fall in net profit at Rs 107.77 crore for the six-month period ended September 30, 2005, from Rs 331.06 crore last year.

The bank suffered a hit of Rs 319.04 crore after making provision for depreciation on investments and on transfer of securities from `allowed-for-sale' category to `held-to-maturity' category.

Total income fell to Rs 2,863.46 crore (Rs 3,190.18 crore) while other income decreased to Rs 226.28 crore (Rs 625.72 crore).

Net interest income increased to Rs 1,167.54 crore (Rs 1,148.39 crore). Total expenditure decreased to Rs 2,316.80 crore (Rs 2,333.81 crore).

Capital adequacy ratio was at 12.13 per cent (13.2 per cent). The ratio of net non-performing assets fell to 2.79 per cent (4.41 per cent).

Total deposits increased to Rs 65,493 crore (Rs 57,063 crore) and total advances increased to Rs 30,966 crore (Rs 26,300 crore).

Priority lending increased by 32.36 per cent to Rs 10,844 crore (Rs 14,353 crore). Investments increased by 7 per cent to Rs 33,850 crore (Rs 31,634 crore).

The bank has also proposed to treat its entire investments as stock in trade with effect from April 1, 2004. This will enable the bank to get tax exemption on the investments, said a senior official from the bank.

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