Centurion Bank has turned the corner. It has posted a net profit of Rs 40 lakh (Rs 4 million) in the first quarter ended June 30, 2003 as against a loss of Rs 3.66 crore (Rs 36.6 million) in the corresponding quarter last year.
Meanwhile, Sabre Capital Worldwide's managing director Rajiv Maliwal and Sabre's director Nigel Kenny has joined the board of Centurion Bank.
Ravi Behl has also joined the bank for a period of four months and will look into the overall integration of the bank. The Reserve Bank of India approval for the merger is also expected shortly.
In the reporting quarter, interest earned declined by 20 per cent to Rs 77.47 crore (Rs 774.7 million) and other operating income fell by 32.54 per cent to Rs 16.81 crore (Rs 168.1 million).
While interest expended came down by 34.53 per cent to Rs 51.51 crore (Rs 515.1 million), operating expenses increased by 9.53 per cent to Rs 38.27 crore (Rs 382.7 million).
The net interest income for the quarter was higher at Rs 25.96 crore (Rs 259.6 million) as against Rs 17.82 crore (Rs 178.2 million) in the corresponding quarter of 2002-03.
The bank, in a statement, said the increase in the net interest income has been achieved through reduction in interest cost on deposits and by continuing with the conscious policy of shifting from lower yielding corporate loans to higher yielding retail assets. The ratio of corporate advances has been brought down from 45 per cent as on 31.3.2002 to about 32 per cent as on 30.6.2003.