Treasury to drag down H2 profit: Central Bank

Treasury to drag down H2 profit: Central Bank

New Delhi: The Central Bank of India on Monday said its profit during the second half of FY10 would not be “as good as" the first half as treasury gains have declined.

“Second half of the year (profit) will not be as good as the first half," said Central Bank chairman and managing director S. Sridhar.

This would be because treasury profit in the second half would not be as much as in the first half of the fiscal, he said.

During the first six months of 2009-10, the bank recorded a net profit of Rs581 crore, more than the total profit recorded in the entire fiscal 2009.

However, he said, the bank will try and compensate the shortfall in treasury profit by increasing its operational profit and through better recovery from non-performing assets.

Asked about credit growth Sridhar said credit has started picking up in the last month and the trend should intensify further.

In between April and December the credit offtake has risen by 11% and the bank expects robust demand in the last quarter, he said.

The bank had planned to grow advances by 20% during 2009-10 and it is not revising the target, he said.