Date:11/05/2006 URL: http://www.thehindubusinessline.com/2006/05/11/stories/2006051103620600.htm

Back `Govt nod likely soon for Central Bank IPO'

Our Bureau

LOOKING AHEAD: Ms H.A. Daruwala, Chairperson & Managing Director, Central Bank of India, addressing a press conference in Mumbai on Wednesday. (Report on Page 6) - Shashi Ashiwal

Mumbai , May 10

Central Bank of India hopes to get government clearance for its proposed initial public offer (IPO) soon, Ms H.A. Daruwalla, Chairperson and Managing Director, said on Wednesday.

However, the bank will have to wait for certain legislative changes before entering the capital market, she said. "We hope to come out with the IPO in the current fiscal," said Ms Daruwalla while announcing the bank's annual results for 2005-06. The IPO size and other details will be decided after the government approval, she said.

Ms Daruwalla said the bank had submitted a scheme to the government for splitting the capital base to augment its EPS ahead of the IPO.

The bank reported a lower profit of Rs 257.42 crore for the year ended March 31, 2006 as against Rs 357.41 crore in the previous year. This was mainly because of the Rs 688 crore hit the bank took on account of its investments in government securities.

She said the bank's overall performance has been good with business exceeding Rs 1,05,678 crore.

The gross NPA has come down to 6.85 per cent from 9.01 per cent and net NPA to 2.59 per cent from 2.98 per cent.

Advances increased by 34.76 per cent to Rs 39,195 crore from Rs 29,085 crore. Total deposit increased by 9.43 per cent to Rs 66,483 crore from Rs 60,752 crore.