Centurion posts Rs 7.10 cr net, to raise Rs 600 crore

Centurion Bank today announced a net profit of Rs 7.10 crore for the quarter ended December 31, against a loss of Rs 6.54 crore in the corresponding quarter last fiscal.

The bank's net profit in the first nine months of the current fiscal now stood at Rs 15.51 crore against a loss of Rs 7.42 crore. Total income in the quarter ended December 31, 2004, increased by 4.52 per cent to Rs 103.66 crore against Rs 99.17 crore.

Operating income increased to Rs 16.70 crore against Rs 15.50 crore in the corresponding quarter last fiscal.

The bank in its board meeting today decided to raise additional equity capital of around Rs 600 crore in one or more tranches, either by way of private placement of equity shares or by way of an international offering, a release said.

On the Bombay Stock Exchange, the Centurion Bank scrip ended gaining 2.31 per cent to close at Rs 19.90.

Shailendra Bhandari, managing director, Centurion Bank said that the proposed equity issue in the next few months will provide the support and impetus required for strong organic growth over the quarters.

The bank is likely to raise around Rs 300 crore by March 2005 through a second public offering, said a senior bank official. This capital should enable the bank support growth plans for around two years, he added.

The bank board has decided to convene an extraordinary general meeting of the bank on February 7 to seek the approval of the shareholders for raising the capital.

Its capital adequacy ratio stood at 10.17 per cent against 3.52 per cent. The bank's non-performing assets (NPAs) in the quarter ended December 31 was at 3.36 per cent, down from 6.47 per cent in the corresponding quarter last fiscal.