Public sector lender Central Bank of India, has registered a loss of Rs. 105 crore for the quarter ending March '12 as compared to profit of Rs. 133 crore in Q4 FY11. But this hasn't deterred the bank in its plans to strengthen it retail presence by introducing new products.
The government owned bank is looking to grow at 45% in the retail segmen in this fiscal, and most of the growth would come from micro small and medium enterprises (MSME), gold loans, home loans and mortgages.
The retail business of the bank was about 12% (Rs. 17,500 crore) at the end of March '12, up from 10% last year. The bank hopes to achieve its target of 13.5% this fiscal. The gross NPA ratio has also gone down, at 5% from 10% in FY11.
The MSME scheme named ‘Cent Sahyog' was launched in October 2011. This scheme offers loans without any security, but with an insurance cover of Small Industries Development Bank of India (SIDBI).
"In home loan segment, we are coming out with advance disbursement facility. In this case, we will disburse a loan in only one-go, not depending on different stages of construction work. For this, we are tying up with big builders whose projects will be duly approved by our bank," the bank's General Manager, Ram Sangapure said.
The bank added Rs. 700 crore to its home loans portfolio taking it to Rs. 6,739 crore. Mortgages or loans against property stood at Rs. 3,555 crore, three times of what they were the previous year. The Gold loans also added Rs. 155 crore ending the fiscal at Rs. 355 crore.