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-2.95 (-4.24%)
-2.65 (-3.82%) | Chairman's Speech (Central Bank of India) | Year : Mar '12 |
Dear Shareholder, It is my pleasure to present the Annual Report for the year ended 31st March, 2012. At the outset, let me congratulate you on your great Bank completing 100 years of yeomen services to the people of this great nation. The Bank celebrated the centenary year across the country through all its offices and branches. During the centenary year, special cultural programme was organized at country''s capital, New Delhi and at the financial capital, Mumbai. The programme held on 21.12.2011 at Delhi was graced by Shri Pranab Mukherjee, Honorable Finance Minister, GOI, Shri Namo Narain Meena, MOS, GOI, Shri D.K.Mittal (IAS), Secretary, Dept. of Financial Services, MOF, GOI. On this occasion following new initiatives were taken: Opening of 100 branches Release of '' History Book'' on the Bank Inauguration of Financial Literacy and Credit Counseling Centre, Kota Launching of websites Gateway to Prime Minister Relief Fund Felicitation of octogenarian Customers - living legend of the Bank The programme held in Mumbai on 26.12.2011 was graced by Chief Minister of Maharashtra, Shri Prithviraj Chavan and during the event - opening of 100 ATMs , felicitation of unsung Heroes, faliciation of Gram Pradhan of Sangvi Mohadi village . VIP customers and Ex-Top Executives were also felicitated. The celebrations reaped a huge benefit by way of building a heightened brand-building of this great institution. Your bank can now boast as of one of the best Banking Brand in the country. The year gone by has seen many negatives in the Economic and Political scenario both globally and locally. The adverse Balance of Payment, the crude oil price, the falling Rupee against the USD, the sliding GDP growth, the inflation - look from any angle, the situation looked challenging. Against all the adverse conditions, your bank showed a respectable growth in the operating profit, albeit under moderate growth in Deposit and Advances. The interest rate hike on resources also did its bit in reducing the margin on income. The commodity prices remained constantly high thereby forcing RBI to resort to successive hiking of policy rates. The Euro Zone continues to falter and possibly has reached the worst possible level. The headline inflation and the core inflation still threaten the growth machinery of the economy. RBI''s anti-inflationary stance may not allow it to soften the policy rates for greater part of this financial year. Despite a record food grain production in the Agriculture & Allied activities which recorded growth of 5.4 per cent during the last year, the supply and storage constraints worked adversely and could not contain inflation. Industrial production throughout the year showed a very tardy growth. The GDP projection was lowered successively to a level of 6.9%, as against a growth of 8.6 per cent during 2010-11. Your Bank has achieved a total business level of Rs. 346898 crore. The Bank changed its strategies by clearly diversifying in favour of retail business. The High cost deposits (i.e above card rate) and CDs have been contained at the June''2011 level. This step was taken as a measure of cost management. There is a clear shift towards the retail credit growth. A bank with more than 4000 branches needs to be a Retail Bank. Our strategies have started yielding results and would show significant growth in the coming financial year. Cost of fund of the Bank has gone up from 5.82 per cent for 2010-11 to 7.28 per cent for 2011-12, which is in line with the industry. However, despite the sharp increase in cost of funds, Net Interest Income was only marginally impacted from Rs. 5326 crore to Rs. 5169 crore. This was in the backdrop of an interest reversal amounting to Rs. 403 crore due to additional slippage in NPA. Operating profit of your bank increased y-o-y by 8.65% from Rs. 2591 crore to Rs. 2815 crore. However, Net profit showed a fall from Rs. 1252 crore to Rs. 533 crore on account of provisioning in NPA and restructured accounts .The main factor was recognition of 100% system driven NPA and high exposure to Discoms and aviation sector. The severity of the economic conditions affecting the industrial and financial market sectors did not only affect your bank but all the banks in the country. Provisions and write back of interest amounted to Rs. 2685 crore during the year. I really feel privileged to lead one of the largest Public Sector banks, that too joining this great institution at a time when it celebrated its centenary year. Despite the fact that the financial results have been only moderate, there have been a lot of qualitative improvements. The strong branch network of 4011 branches spread across entire geography of the country with matching workforce of over 35000 will lead your Bank to a greater height in the coming year. The guidance on financial parameters for the coming financial year aimed at achieving enhanced value for all the stakeholders in the Bank. I express my sincere gratitude for your unstinted support. With best wishes, Yours sincerely, Mohan V Tanksale Place : Mumbai Date : May 24, 2012 |
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| Source : Dion Global Solutions Limited | |
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