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Analyst Meet / AGM - Analyst Meet

Plans to reduce GNPA to 5.25% and NNPA to 2.2% by end March 2016

Central Bank of India

14-May-2015, 02:28
Central Bank of India conducted an analyst meet on 12 May 2015 to discuss financial performance for the quarter ended March 2015 and prospects of the bank. RK Goyal, Executive Director of the bank addressed the meet: Highlights:

Bank focused on business consolidation in FY2015.
Bank has cut the high cost deposits from Rs 52434 crore in March 2014 to Rs 27435 crore in March 2015.
Provision Coverage Ratio has improved from 50.68 % to 55.16 % on Y-o-Y basis.
Bank has improved the network count to 4689 branches and 4835 ATMs at end March 2015.
Bank has continued to maintain asset quality with the easing fresh slippages of advances. Fresh slippages eased to Rs 1471 crore in Q4FY2015. The largest account slipping to NPA category had exposure of Rs 250 crore and belonged to the chemical sector.
Bank expects further decline in fresh slippages, going forward.
As per the bank, about 4-5 accounts with exposure of Rs 2600 crore are witnessing stress, barring them asset quality pressure is over.
Fresh restructuring of advances stood at Rs 1653 crore in Q4FY2015. Standard restructured advances of the bank stood at Rs 29617 crore at end March 2015.
Bank has CDR related restructuring pipeline of Rs 55 crore.
Bank has conducted asset sale of Rs 55 crore to Asset Reconstruction Companies (ARCs) in Q4FY2015.
The loan growth of the bank was moderate at 6.4% at end March 2015, as the corporate loan book declined 4.8% losing the share in overall loan book to 50.7% at end March 2015 from 56.7% at end March 2014. The loan growth of the bank was also impacted by maturing of Rs 2200 core of inter bank participation certificates (IBPC).
Bank has fully met the priority sector lending target of 40% of advances, so bank has received the repayment of Rs 2000 crore of low yielding RIDF deposits.
Bank proposes to reduce the GNPA ratio to 5.25% and NNPA ratio to 2.2% by end March 2016.
Bank has targeted advances growth of 9.2% and deposits growth of 14.9% for FY2016. The overall business growth is targeted at 12.4% for FY2016.
Bank proposes to improve the CASA ratio to 34.5% by end March 2016.
Bank proposes to improve NIM to 2.9% in FY2016, while RoA is targeted to be improved to above 0.5% in FY2016.