Central Bank reports 28 pc decline in net profit for FY'06

Mumbai, May 10 (UNI) Central Bank of India has posted a net profit of Rs 257 crore for the year ended March 31, as compared to Rs 357 crore last year, reflecting a fall of 28.01 per cent.

Announcing the results, the bank said its total income for the year under review stood at Rs 5,917 crore as against Rs 6,125 crore in the previous year, a decline of 3.40 per cent.

Interest income showed an improvement of 3.48 per cent during the year to Rs 5,386 crore from Rs 5,205 crore in the FY'05, while non-interest income declined steeply by 42.28 per cent to Rs 531 crore as against Rs 920 crore in the previous year. In absolute terms, growth in interest income was to the tune of Rs 181 crore during the year.

Briefing reporters here today, Central Bank Chairperson and Managing Director H A Daruwalla said despite increase in risk weighted assets from Rs 28,030 crore to Rs 40,608 crore, Capital Adequacy of the bank was maintained at 11.03 per cent as of March this year.

The Board of Central Bank, which is 100 per cent owned by Government of India, has proposed a dividend of Rs 50 crore for the year 2005-06 as compared to Rs 35 crore in the previous year.

Replying to a query, she said the bank had approached the government for its clearance to come out with an IPO during this fiscal. However, the issuance of IPO by the bank calls for an amendment to the Companies Act as well as the Banking Act.

''Once these were achieved, the bank can approach the regulator for a formal clearance to the IPO,'' she said.

''We are hopeful of getting all the clearances during the current fiscal,'' she added.

To a related query, Ms Daruwalla said: ''To begin with, the bank may divest 15 per cent equity at the first instance.'' Currently, the bank's paid-up equity share capital stands at Rs 1124.14 crore, she added.

UNI SN SSS VKG2217