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Tag: Central Bank of India

  • Bank of India, Central Bank and Uco Bank post Q2 profit gains despite margin pressure

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    Mumbai: Public sector lenders Uco Bank, Central Bank of India and Bank of India recorded gains on account of higher interest income and lower provisions in the September quarter. Over the year, net profit after tax increased by 2.8% to ₹620 crore for Uco bank, 7.6% to ₹2,555 crore for Bank of India and 32.8% to ₹1,213 crore for Central Bank of India.

    All the three banks saw a drop in net interest margins (NIMs)-the difference between interest income a bank generates from its assets and the interest it pays out on its liabilities.

    NIMs for Bank of India were at 2.41% in Q2FY26 from 2.81% in Q1FY25, for Central Bank of India, NIMs fell 52 basis points to 2.89% during the quarter, from 3.41%, while for Uco Bank NIMs stood at 2.90% from 3.10%. Pressure on NIMs is expected to reduce in the third quarter, bank officials said in the earnings call.

    loans grow faster than deposits in q2 at Uco, CBI & BoI

    The bank’s net interest income (NII) for Central Bank of India grew 3.7% to ₹3,283 crore, while it grew 10% to ₹ 2,533 crore for Uco bank over the year.

    For Bank of India, NII reduced by 1% to ₹5,912 crore and 2533 10%

    Provisions too, saw a drop by 58% to ₹441 crore for Bank of India and by 54.2% to ₹573 crores. Uco Bank however saw an increase in provisions over the year by 19% to ₹993 crores. “The provisions made are forward looking and prudent,” said Ashwani Kumar, MD & CEO, Uco Bank in the earnings call.

    Loan and deposit growth

    Loan growth outpaced deposit growth in all the three banks. For Uco Bank, deposits grew at 16.5% to ₹2.3 lakh crore while loans grew 10.8% to ₹ 3.05 lakh crore. For Bank of India, loans grew 14% to ₹7.1 lakh crore while deposits grew 10% to ₹8.5 lakh crore.

    For the Central Bank of India, loans grew 16.03% to ₹2.9 lakh crore and deposits grew 13.4% to ₹4.5 lakh crore.

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  • Govt appoints Asheesh Pandey as MD of Union Bank, Kalyan Kumar as head of Central Bank of India

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    The government has appointed Asheesh Pandey as managing director (MD) and CEO of Union Bank of India and Kalyan Kumar as head of Central Bank of India for a period of three years.

    The Appointments Committee of the Cabinet headed by the Prime Minister approved these appointments for an initial period of three years, sources said.

    Pandey, currently Executive Director of Bank of Maharashtra, has been appointed as MD and CEO of Union Bank of India for a period of three years with effect from date of assumption of charge of the office.

    Kumar, Executive Director of Punjab National Bank (PNB), will succeed M V Rao as MD and CEO of Central Bank of India after his superannuation in July.

    The Financial Services Institutions Bureau (FSIB) on May 30 recommended Pandey and Kumar for the post of MD and CEO of Union Bank of India (UBI) and Central Bank of India, respectively.


    FSIB is headed by former Department of Personnel and Training Secretary Bhanu Pratap Sharma.

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    Other members of the headhunter are Animesh Chauhan, former chairman and MD of erstwhile Oriental Bank of Commerce, the Reserve Bank‘s former executive director Deepak Singhal, and Shailendra Bhandari, ex-MD of erstwhile ING Vysya Bank.

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  • Centre extends term of office of BoM and CBoI Chiefs

    Centre extends term of office of BoM and CBoI Chiefs

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    The Central Government has extended the term of office of the chiefs of the Bank of Maharashtra (BoM) and the Central Bank of India (CBoI).

    BoM, in a regulatory filing, said that the Department of Financial Services (DFS), Ministry of Finance (MoF), has notified that the Central Government has extended the term of office of AS Rajeev, MD and CEO of the Bank, beyond his current notified term, which expires on December 1, 2023, till the date of his superannuation — that is, May 31, 2024, or until further orders, whichever is earlier.

    Rajeev took charge as BoM chief in December 2018.

    In a regulatory filing, the CBoI said the DFS, MoF, has extended the term of office of Matam Venkata Rao, MD and CEO of the Central Bank of India, beyond his currently notified term, which expires on February 29, 2024, until the date of his superannuation, that is, July 31, 2025, or until further orders, whichever is earlier.

    Rao took charge as CBoI chief in March 2021.

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  • Bank of Maharashtra tops PSU lenders chart in loan, deposit growth in Q1

    Bank of Maharashtra tops PSU lenders chart in loan, deposit growth in Q1

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    State-owned Bank of Maharashtra (BoM) has emerged as the top performer among public sector lenders in loan and deposit growth in percentage terms during Q1 FY24.

    The deposit and advances of the Pune-based lender recorded almost 25 per cent rise, the highest by any public sector bank during the April-June quarter.

    With a growth rate of 24.98 per cent, the gross domestic advances of the bank rose to ₹1,75,676 crore at the end of June 2023, according to published quarterly numbers of the public sector banks (PSBs).

    Also read: Bank of Maharashtra cuts home and car loan interest rates

    It was followed by UCO Bank with 20.70 per cent growth, while Bank of Baroda with 16.80 per cent and Indian Overseas Bank with 16.21 per cent growth were at third and fourth spot, respectively.

    Country’s largest lender State Bank of India stood at fifth spot with 15.08 per cent rise in domestic advances growth.

    However, SBI’s total loans were about 16 times higher at ₹28,20,433 crore, as compared to ₹1,75,676 crore of BoM in absolute terms.

    In terms of Retail-Agriculture-MSME (RAM) loans, BoM has the highest growth of 25.44 per cent followed by Punjab & Sind Bank with 19.64 per cent and Punjab National Bank at 19.41 per cent on Y-o-Y basis.

    Also read: Bank of Maharashtra’s advances to grow 1.5 times the banking industry average in FY24: Chief Rajeev

    With regard to deposit growth, BoM witnessed a 24.73 per cent growth and mobilised ₹2,44,365 crore at the end of June 2023.

    Bank of Baroda was in the second place with a 15.50 per cent growth in deposits (₹10,50,306 crore), while Punjab National Bank recorded a 13.66 per cent increase at ₹12,67,002 crore, according to published data.

    BoM retained top position in terms of garnering low-cost Current Account and Savings Account (CASA) deposits with 50.97 per cent followed by Central Bank of India at 49.56 per cent.

    Helped by high growth in loan and deposits, the bank’s total business also recorded the highest growth of 24.84 per cent at ₹420,041 crore, followed by Bank of Baroda at 16.10 per cent at ₹18,62,932 crore at the end of June 2023.

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  • Central Bank of India reports 78% jump in Q1 FY24 net profit

    Central Bank of India reports 78% jump in Q1 FY24 net profit

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    Central Bank of India has announced that its net profit in Q1 FY24 jumped 78 per cent year-on-year to ₹418 crore against ₹235 crore in the year ago quarter on the back of robust growth in net interest income and sharp decline in loan loss provisions.

    Net interest income (difference between interest earned and interest expended) of the Mumbai-headquartered public sector bank rose 48 per cent y-o-y to ₹3,176 crore (₹2,142 crore).

    Other income, comprising income (including commission) from non-fund based banking activities, fees, earning from foreign exchange, profit/loss on sale of assets, profit/loss (including revaluation) from investments, recovery from accounts written off, etc, was up 15 per cent at ₹959 crore (₹831 crore).

    Net interest margin (NIM) improved to 3.62 per cent from 2.88 per cent in the year ago quarter.

    Also read: HDFC Bank Q1 net profit jumps 29% to ₹12,370 crore

    Loan loss provisions declined 70 per cent y-o-y to ₹244 crore (₹824 crore). Credit cost declined to 0.45 per cent in the reporting quarter against 1.78 per cent in the year ago quarter.

    The gross non-performing assets (NPA) to gross advances position improved to 4.95 per cent as at June-end 2023 on the back of technical write-off of ₹7,804 crore against 8.44 per cent as at March-end 2023.

    The net NPA to net advances position improved a tad to 1.75 per cent as at June-end 2023 against 1.77 per cent as at March-end 2023.

    Total deposits increased by 6.05 per cent y-o-y to stand at ₹3,63,398 crore as on June-end 2023. Low-cost CASA (current account, savings account) deposits declined to 49.76 per cent of total deposits against 51.15 per cent in the year ago quarter.

    Total Advances rose by 12.95 per cent y-o-y to stand at ₹2,19,863 crore, with RAM (retail, agriculture and MSME) and corporate advances clocking a growth of 12.95 per cent and 13.15 per cent, respectively.

    Capital adequacy ratio improved to 14.42 per cent from 13.33 per cent as at March-end 2023.

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