Central Bank to foray into insurance business

Central Bank of India has said it will take a decision in the current financial year to enter insurance business.

"We are looking to diversify into insurance, both life and non-life, and asset management businesses," the bank's Chairman and Managing Director S Sridhar told reporters during the inauguration of a branch in Murshidabad in West Bengal.

He said a decision to this effect would be taken during the current financial year. He said the bank was poised to make the highest-ever profit during 2009-10. In the first nine months of the last fiscal, the total net profit stood at Rs 887 crore (Rs 8.9 billion).

On capital requirements, he said that in March the bank had received Rs 450 crore (Rs 4.5 billion) as Tier I capital from the government. "In the first quarter of 2010-11, another Rs 250 crore (Rs 2.5 billion) is expected," Sridhar said.

To a query, he said net interest margin of the bank would be under pressure and a credit offtake growth of 25 per cent in the current financial year is expected.