Date:30/11/2005 URL: http://www.thehindubusinessline.com/2005/11/30/stories/2005113002780600.htm

Back Centurion Bank of Punjab posts Rs 21-cr net

Our Bureau

Mumbai , Nov. 29

CENTURION Bank of Punjab posted net profit of Rs 20.9 crore for the quarter ended September 30, 2005, against Rs 5.26 crore in the corresponding quarter last year, due to increase in low cost deposits and other income. (The figures for the previous quarter are not comparable)

The bank also plans to raise Rs 800 crore through a combination of a preferential issue and an international or domestic equity offering, said a press release from the bank.

The Reserve Bank of India approved the merger of Centurion Bank with Bank of Punjab on October 1.

For the quarter ended September 30, 2005, total income was Rs 243.89 crore (Rs 97.42 crore); net interest income was Rs 94.1 crore (Rs 42.94 crore); and other income was Rs 51.68 crore (Rs 14.55 crore). Total expenditure was Rs 216.82 crore (92.66 crore).

For the half-year ended September 30, 2005, the bank posted net profit of Rs 38.49 crore (Rs 8.41 crore); total income was Rs 468.91 crore (Rs 190.84 crore) and other income was Rs 98.63 crore (Rs 22.84 crore). Total expenditure was Rs 412.35 crore (183.71 crore).

Retail advances grew to Rs 4,186.5 crore. Low cost deposits (current account and saving account) grew to 38.1 per cent of the total deposits of Rs 8,071.3 crore.

Net non-performing assets were at 2.59 per cent of total assets. Capital Adequacy Ratio was 10.92 per cent.

Preferential issue: The press release said the bank planned to raise Rs 384 crore additional capital through a preferential issue of fresh equity and Rs 416 crore through an international or domestic offering.

As part of the preferential allotment of equity shares, the bank proposes to allot 70 million fully paid-up equity shares at a price of Rs 19.25 a equity share for a consideration of Rs 135 crore to funds managed by GW Capital and/or its affiliates, nominees ; 70 million fully paid-up equity shares at a price of Rs 19.25 a equity share for a consideration of Rs 135 crore to funds managed by ChrysCapital ; and up to 59 million fully paid-up equity shares at a price of Rs 19.25 per equity share for a consideration of Rs 114 crore to funds managed by Citigroup Venture Capital International Growth Partnership Mauritius Ltd .

The bank will hold an extraordinary general meeting of shareholders on December 24 to consider this proposal.

Ambit Corporate Finance PTE Ltd and SSKI are the financial advisors to the above transaction.