Centurion Bank of Punjab’s Net Profit for the quarter ended December 31, 2007 up 44% to Rs.483 million; Operating profit for the quarter up 108%
Net Advances increase by 60%; Deposits increase by 65%
Monday, 21st January 2008: Centurion Bank of Punjab, today announced an Operating profit for the quarter ended December 31, 2007 of Rs. 1.28 billion; this demonstrates a growth of 108% over the corresponding quarter last year. The net profit for the quarter at Rs. 483 million has shown an increase of 44% as compared to that in the corresponding quarter last year.
The bank has demonstrated strong growth along all its businesses. Advances grew by 60% and deposits by 65% over those at the same time last year. The bank continues to maintain a strong momentum in earnings growth as well as growth across all its core businesses.
Significant growth along core businesses
The Bank’s net advances and deposits witnessed growth rates 60% and 65% over those in the corresponding quarter of the previous year. The Bank’s advances towards the SME sector grew by 141% and retail advances grew by 39% over those at the end of the corresponding quarter last year, in line with the Bank’s strategy of diversifying its portfolio.
Retail lending continues to remain a core focus area for the Bank with retail advances forming 60% of its total advances while the rapidly growing SME business serves as a strong second engine of growth.
As on December 31, 2007 mortgages formed the largest component of the Bank’s retail asset portfolio at Rs. 28,739 million demonstrating a growth of 83%, mortgages now constitute 32% of the Bank’s net retail advances as compared to 24% last year. Personal loans constitute 20% of the Bank’s retail asset portfolio while two wheelers and commercial vehicle & construction equipment loans now form 31% of the bank’s retail asset portfolio as compared to 44% last year.
Significant growth in the Bank’s wealth management business has led to a growth of 57% in the Bank’s non-interest income this quarter.
Profitability
The net profit for the Bank has grown sequentially by 16% over the previous quarter, and 44% over the corresponding quarter of the previous year. While the bank’s operating profit for the quarter grew by 108% over the corresponding quarter of the previous year.
For the quarter ended December 31, 2007 (Q3 FY2008), Net Interest Income increased by 38% over last year (Q3 FY2007) to Rs. 1,900 million. Net Interest Margin for the quarter ended December 31, 2007 (Q3 FY2008) was 3.6% an increase over 3.5% in the previous quarter (Q2 FY2008).
Non Interest Income for the quarter ended December 31, 2007 (Q3-FY2008) increased 57% to Rs. 1,600 million. An increase in fees & commissions from wealth management, core banking, retail assets and foreign exchange businesses contributed to this growth. Fee income constitutes 46% of the Bank’s total income for the quarter.
The total income for the bank grew by 46%. The growth in operating costs for the Bank has shown a decline of 13% as compared to the corresponding quarter last year. This has led to an improvement in the bank’s cost to income ratio to 63% this quarter as compared to 74% last year. The cost income ratio for the bank in the previous quarter (Q2- FY2008) was 71%.
Asset Quality
The ratio of the net Non-Performing Loans of the bank to net customer assets stood at 1.7%. The NPA provisioning continues to remain much higher than that stipulated by the Reserve Bank of India.
Deposits
The deposits at Rs. 207,100 million grew 65% over those at the end of the corresponding period last year. The cost of deposits for the quarter ended December 31, 2007 has reduced to was 7.3% from 7.5% in the previous quarter (Q2 FY2008). Low cost deposits (CASA) for the Bank remained steady at 24.5% of the total deposits.
Capital Adequacy and Net Worth
The Bank’s capital position remained healthy, total capital as a percentage of its risk weighted assets was 11.5% of which the Tier I capital adequacy ratio was 10.0% and the Tier II capital adequacy ratio was 1.5%. The net worth of the Bank at the end of the quarter (Q3-FY2008) was Rs. 19,633 million.
Book Value per share and Earnings per share
The Bank’s book value per share increased to Rs. 10.5 and its EPS (non-annualized for the quarter) was Rs. 0.26.
Merger with Lord Krishna Bank
The process of integration of the operations of both banks is well underway and is expected to be completed in all significant aspects by the end of the current financial year. As the integration of the erstwhile LKB is completed and the bank increases its size and scale the efficiency of its operations will continue to improve.
_________________________________________________________________________________________
About Centurion Bank Of Punjab
Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management products such as mutual funds and life and general insurance and has established a leadership 'position'. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to overseas Indians.
On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country. Centurion Bank of Punjab is planning to build upon the strong brand attributes of both banks in their respective geographies.
Centurion Bank of Punjab now operates on a strong nationwide franchise of 394 branches and 452 ATMs in 180 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Bank’s shares are also listed on the Luxembourg Stock Exchange.
For further information, please contact:
Pushkar Gupta
Centurion Bank of Punjab
Tel.: (022) 67540888
Radha Sajnani / Supriya Sonde / Khantil Shah
Vaishnavi Corporate Communications
Tel.: (022) 6656 8787
Mobile: (0) 98214 35679 / 98670 35854 / 99676 47191
Email: rsajnani@vccpl.com / ssonde@vccpl.com / khantils@vccpl.com
Net Advances increase by 60%; Deposits increase by 65%
Monday, 21st January 2008: Centurion Bank of Punjab, today announced an Operating profit for the quarter ended December 31, 2007 of Rs. 1.28 billion; this demonstrates a growth of 108% over the corresponding quarter last year. The net profit for the quarter at Rs. 483 million has shown an increase of 44% as compared to that in the corresponding quarter last year.
The bank has demonstrated strong growth along all its businesses. Advances grew by 60% and deposits by 65% over those at the same time last year. The bank continues to maintain a strong momentum in earnings growth as well as growth across all its core businesses.
Significant growth along core businesses
The Bank’s net advances and deposits witnessed growth rates 60% and 65% over those in the corresponding quarter of the previous year. The Bank’s advances towards the SME sector grew by 141% and retail advances grew by 39% over those at the end of the corresponding quarter last year, in line with the Bank’s strategy of diversifying its portfolio.
Retail lending continues to remain a core focus area for the Bank with retail advances forming 60% of its total advances while the rapidly growing SME business serves as a strong second engine of growth.
As on December 31, 2007 mortgages formed the largest component of the Bank’s retail asset portfolio at Rs. 28,739 million demonstrating a growth of 83%, mortgages now constitute 32% of the Bank’s net retail advances as compared to 24% last year. Personal loans constitute 20% of the Bank’s retail asset portfolio while two wheelers and commercial vehicle & construction equipment loans now form 31% of the bank’s retail asset portfolio as compared to 44% last year.
Significant growth in the Bank’s wealth management business has led to a growth of 57% in the Bank’s non-interest income this quarter.
Profitability
The net profit for the Bank has grown sequentially by 16% over the previous quarter, and 44% over the corresponding quarter of the previous year. While the bank’s operating profit for the quarter grew by 108% over the corresponding quarter of the previous year.
For the quarter ended December 31, 2007 (Q3 FY2008), Net Interest Income increased by 38% over last year (Q3 FY2007) to Rs. 1,900 million. Net Interest Margin for the quarter ended December 31, 2007 (Q3 FY2008) was 3.6% an increase over 3.5% in the previous quarter (Q2 FY2008).
Non Interest Income for the quarter ended December 31, 2007 (Q3-FY2008) increased 57% to Rs. 1,600 million. An increase in fees & commissions from wealth management, core banking, retail assets and foreign exchange businesses contributed to this growth. Fee income constitutes 46% of the Bank’s total income for the quarter.
The total income for the bank grew by 46%. The growth in operating costs for the Bank has shown a decline of 13% as compared to the corresponding quarter last year. This has led to an improvement in the bank’s cost to income ratio to 63% this quarter as compared to 74% last year. The cost income ratio for the bank in the previous quarter (Q2- FY2008) was 71%.
Asset Quality
The ratio of the net Non-Performing Loans of the bank to net customer assets stood at 1.7%. The NPA provisioning continues to remain much higher than that stipulated by the Reserve Bank of India.
Deposits
The deposits at Rs. 207,100 million grew 65% over those at the end of the corresponding period last year. The cost of deposits for the quarter ended December 31, 2007 has reduced to was 7.3% from 7.5% in the previous quarter (Q2 FY2008). Low cost deposits (CASA) for the Bank remained steady at 24.5% of the total deposits.
Capital Adequacy and Net Worth
The Bank’s capital position remained healthy, total capital as a percentage of its risk weighted assets was 11.5% of which the Tier I capital adequacy ratio was 10.0% and the Tier II capital adequacy ratio was 1.5%. The net worth of the Bank at the end of the quarter (Q3-FY2008) was Rs. 19,633 million.
Book Value per share and Earnings per share
The Bank’s book value per share increased to Rs. 10.5 and its EPS (non-annualized for the quarter) was Rs. 0.26.
Merger with Lord Krishna Bank
The process of integration of the operations of both banks is well underway and is expected to be completed in all significant aspects by the end of the current financial year. As the integration of the erstwhile LKB is completed and the bank increases its size and scale the efficiency of its operations will continue to improve.
_________________________________________________________________________________________
About Centurion Bank Of Punjab
Centurion Bank of Punjab is one of the leading new generation private sector banks in India. The bank serves individual consumers, small and medium businesses and large corporations with a full range of financial products and services for investing, lending and advice on financial planning. The bank offers its customers an array of wealth management products such as mutual funds and life and general insurance and has established a leadership 'position'. The bank is also a strong player in foreign exchange services, personal loans, mortgages and agricultural loans. Additionally the bank offers a full suite of NRI banking products to overseas Indians.
On 29th August 2007, Centurion Bank of Punjab merged with Lord Krishna Bank (LKB), post obtaining all requisite statutory and regulatory approvals. This merger has further strengthened the geographical reach of the Bank in major towns and cities across the country, especially in the State of Kerala, in addition to its existing dominance in the northern part of the country. Centurion Bank of Punjab is planning to build upon the strong brand attributes of both banks in their respective geographies.
Centurion Bank of Punjab now operates on a strong nationwide franchise of 394 branches and 452 ATMs in 180 locations across the country, supported by employee base of over 7,500 employees. In addition to being listed on the major Indian stock exchanges, the Bank’s shares are also listed on the Luxembourg Stock Exchange.
For further information, please contact:
Pushkar Gupta
Centurion Bank of Punjab
Tel.: (022) 67540888
Radha Sajnani / Supriya Sonde / Khantil Shah
Vaishnavi Corporate Communications
Tel.: (022) 6656 8787
Mobile: (0) 98214 35679 / 98670 35854 / 99676 47191
Email: rsajnani@vccpl.com / ssonde@vccpl.com / khantils@vccpl.com
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