Centurion
Bank bottomline may be hit
James Paul
1 November 2001
Kochi:
Even as Centurion
Bank’s overall operations continue to be profitable, its
half-year bottomline may be affected because of the provisioning
requirement relating to its exposure to the capital
market, Centurion Bank director V S Srinivasan has said.
The bank’s capital
market exposure has made a dent in its portfolio to some extent.
Its presence in the capital market was limited, but the Ketan
Parekh imbroglio changed it all and now the bank might face
considerable losses.
The bank’s exposure in
the corporate assets side is towards good quality medium- and
large-size corporates. But the performance of these companies has
also been affected due to the sluggish economic environment, he
said.
Centurion Bank Ltd, he
said, is undergoing a transformation and is in the process of
cleaning up the balance sheet. As part of this, the focus is on
retail business, of both assets and liabilities. Retail deposits
have already shown a growth of Rs 583 crore.
Two-wheeler financing has
become a profitable operation for the bank. The bank is adding new
savings bank and current accounts at the rate of 10,000 every
month. Issuance of ATM and debit cards has also seen a rise.
Since 31 March 2001, the
bank has opened six branches, three extension counters and 18
ATMs, taking the total to 55 branches, 11 extension counters and
116 ATMs.
U
K Sethumadhavan, who now heads the southern division of the bank,
says the total business turnover in Kerala is Rs 300 crore. The
bank is opening two more extension counters - at Thoppumpady and
Kolencheri (Ernakulam boroughs) - shortly, increasing the network
in the state to six branches and five extension counters and 17
ATMs.
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