Central Bank net dips 13%; Canara Bank profit surges

Written by fe Bureau | Mumbai, New Delhi | Updated: Jan 30 2010, 03:17am hrs
Higher provisioning has pulled down the net profit of Central Bank of India 13.25% to Rs 306 crore during the December 2009 quarter against Rs 353 crore for the corresponding quarter of the last year.

Total income rose to Rs 3,495.42 crore as against Rs 3,033.41 crore for the quarter ended December 31, 2008.

While the banks net interest income stood at Rs 364 crore (Rs 311 crore), net interest margin(NIM) went down to 2.04% from 2.37%. Going forward, the bank expects a 15% credit growth.

We have sanctions worth Rs 30,000 crore in the pipeline and are seeing a pick up in infrastructure loans and retail loans, especially in housing and the auto portfolio, said S Sridhar, CMD of Central Bank of India.

Canara Bank NIM at 2.71%

Bangalore-based Canara Bank has reported a robust 50% year-on-year growth in its net profits for the quarter ended December 2009 on the back of an increased net interest income and reversal of provisions previously made.

The banks net profit surged to Rs 1,052 crore from Rs 701 crore in the corresponding quarter last fiscal, while operating profit was up 21% to Rs 1,469 crore from Rs 1,214 crore.

With total interest earned stood at Rs 4,687 crore, net interest income showed an 18% growth, to Rs 1,477 crore from Rs 1,244 crore. Net interest margin was up five basis points to 2.71%.

Other income increased slightly to Rs 781 crore from Rs 757 crore, bringing the total income for the quarter to Rs 5,469 crore, a marginal 1.6% increase over the year-ago Rs 5,382 crore.

Capital adequacy ratio was up to 14.44% from 13.41%, while earnings per share increased to Rs 25.67 from Rs 17.11. Amount of net non performing assets (NPA) of the bank rose to Rs 1,976 crore from Rs 1,654 crore, pushing the percentage of net NPA to 1.34% from 1.28%.

IOB net plummets 73.7%

Higher provisioning, drop in revenue from treasury operations along with accumulation of NPAs have eaten into Indian Overseas Banks (IOB) bottom line with the lender registering a drastic 73.7% drop in its net profit at Rs 101.70 crore for the third quarter of the current fiscal as against Rs 388.44 crore in the same quarter last fiscal.

While total income went down 11.74% to Rs 2,828.65 crore (Rs 3,204.9 crore), interest income stood at Rs 2,570.13 crore. Total non-interest income was at Rs 258.52 crore (Rs 606.55 crore) due to subdued earning in treasury. Significanlty, net interest income has increased to Rs 794.41 crore.

BoI net profit tumbles

Bank of India (BoI) has reported 53.5% drop in its profit to Rs 405.50 crore in the December quarter 2009 from Rs 872.17 crore. Total income also fell 6.23% to Rs 5,057.83 crore (Rs 5393.74 crore).

While banks deposits during the reporting period grew 20% to Rs 2,06,001 crore, advances increased 15% to Rs 1,56,953 crore (Rs 1,36,110 crore).

The MTM losses incurred by the bank were at Rs 131 crore (Rs 63 crore). Banks net interest income went up 6.1% to Rs 1,495 crore, while non-interest income declined by 45% to Rs 572 crore. BoIs net NPA went up at 1.03% from 0.52%.

OBC profit up 14.77%

Oriental Bank of Commerces (OBC) has reported 14.77% growth in its net profit to Rs 289.43 crore during October-December 2009 quarter from the year-ago Rs 252.19 crore. Expansion in interest and non-interest income, which rose by 25.42% and 26.77%, respectively, resulted in profit growth.

Treasury profit in the quarter has come down to Rs 51 crore from Rs 184.8 crore, said OBC CMD TY Prabhu. Our cost of funds has come down substantially from 7.78% to 6.26%, he said. The banks NIM has improved to 3% during the quarter against 2.02%. Its gross non performing assets were down to 1.64% from 1.66%. While its total income of the bank rose 7.03% to Rs 2,909.27 crore, operating profit grew at 61% to Rs 622.79 crore.