Central Bank eyes Rs10,000 cr biz from Mumbai zone in FY12

Central Bank eyes Rs10,000 cr biz from Mumbai zone in FY12

Mumbai: State-run lender Central Bank of India (CBI)’s largest business contributor - Mumbai zone - is targeting a Rs10,000 crore increase in business in FY12 which will see its share increase to 15% of the total pie, a senior official has said.

The increase in business will come in through a steep increase in branches and automated teller machines (ATMs), Central Bank of India general manager A. K. Khadke has said.

The bank, which has 136 branches in the region, will add nearly 50 more in the current fiscal, he said, adding another 125 ATMs will be added to the existing 82 during the 12-month period.

The total business mix from the zone, which stood at Rs28,000 crore for FY11, will be increased by over 35% to Rs38,000 crore during the year, he said.

The zone comprises the regions of Mumbai, Thane, Ratnagiri, Sindhudurg and Goa.

This increase will result in a jump in the zone’s contribution to the total business pie to 15% from the current 12%, Khadke added.

Khadke, who said a greater thrust will be given on the retail side, said the lender will be more aggressive in account opening and is targeting to treble it to 15,000 per month from the current 5,000.

The share of the low-cost CASA (current and savings accounts) to the total deposit base is a low 30% which will be improved, he said, without giving a targeted number.

An increase in CASA numbers will result in a widening of the net interest margin, which stood at around 3% for the fiscal ended 31 March 2011, he said.