Centurion Bank of Punjab net up 44%

The net profit of the Centurion Bank of Punjab (CBoP) increased by 44 per cent to Rs 48.3 crore in the quarter ended December 31, 2007.

The bank's net profit in the third quarter of 2006-07 was Rs 33.6 crore. The financial results are not comparable on account of the merger of Lord Krishna Bank with CBoP.

The bank's advances and deposits grew by 60 per cent to Rs 20,710 core and 65 per cent to Rs 15,083 crore, respectively, over the corresponding quarter last year.

Its advances to the SME sector grew by 141 per cent and retail advances grew by 39 per cent over those at the end of the corresponding quarter last year, in line with the bank's strategy of diversifying its portfolio.

Net interest margin for the quarter ended December 31, 2007 rose by 3.5 per cent over the previous quarter. Retail lending continues to be the core focus area for the bank, with retail advances forming 60 per cent of its total advances, and the rapidly growing SME business serving as a strong second engine of growth.

The ratio of the net non-performing loans of the bank to net customer assets stood at 1.69 per cent.

The process of integration of the operations of LKB with CBoP is underway and is expected to be completed by the end of the current financial year.