Central Bank net up 59%

Last Updated: Thu, Jan 31, 2013 04:53 hrs

Central Bank of India posted a 59.29 per cent rise in net profit at Rs 180 crore for the third quarter ended December 2012 on robust growth in interest income. The bank's net interest income (NII) rose 19.6 per cent to Rs 1,179 crore in the third quarter of FY13. The non-interest income, however, was flat at Rs 357 crore.

Dena Bank, another state-owned lender, posted a modest 11 per cent growth in net profit at Rs 206 crore in the third quarter of FY13.

The Mumbai-based bank's NII rose 14 per cent to Rs 615 crore. The net interest margin was down by 45 basis points to 2.88 per cent.

Dena Bank's capital adequacy ratio (CAR) was at 11.47 per cent with tier-1 capital of 7.61 per cent. The tier-I capital base is below 8 per cent floor set by the government for public sector banks. It has sought capital infusion of Rs 1,250 crore from the government for FY13 and FY14.

Central Bank's CAR was 11.51 per cent with tier I at 7.52 per cent at end-December 2012. Its tier-I ratio is also below floor level set by the government.

The bank proposes to raise Rs 2,406 crore by issuing preference shares to the government.

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