Centurion Bank has shrunk its balance sheet size by around 30 per cent in 2001-02 and shifted its focus from corporate to retail business in a desperate move to turn around.
The bank is expected to post a net loss of over Rs 100 crore and is planning huge provisioning to clean up the balance sheet. The loss will pull down its capital adequacy ratio to 4-5 per cent, much below the Reserve Bank of India stipulated 9 per cent.
The bank has deferred the announcement of its financial results for 2001-02 by a quarter. Its chairman and managing director V Janakiraman, whose six-month term comes to an end on June 30, has been given a six-month extension till December.