Central Bank of India

Central Bank of India

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Central Bank of India (Marathi
Marathi language
Marathi is an Indo-Aryan language spoken by the Marathi people of western and central India. It is the official language of the state of Maharashtra. There are over 68 million fluent speakers worldwide. Marathi has the fourth largest number of native speakers in India and is the fifteenth most...

: सेंट्रल बँक ऑफ इंडिया), a government-owned bank, is one of the oldest and largest commercial banks in India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

. It is based in Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...

. The bank has 3,563 branches and 270 extension counters across 27 Indian states and three Union Territories.

MR.M.V TANKSALE has been appointed as Chairman & Managing Director, Central Bank of India with effect from June 29, 2011.Prior to his appointment as Chairman & Managing Director, Central Bank of India Shri Tanksale was the Executive Director, Punjab National Bank since March 2009.
Central Bank of India, one of the leading Public Sector Banks in the country has paid a Dividend of Rs.192.66 crore to the Government of India for the Financial Year 2010-11. Shri M V Tanksale, Chairman & Managing Director, Central Bank of India has handed over the Dividend Cheque of Rs.192.66 crore to (Centre) Hon’ble Union Finance Minister Shri Pranab Mukherjee on 19/08/2011 at New Delhi.

Central bank of India is one of 18 Public Sector banks in India to get recapitalisation finance from the government over the next 24 months. The infusion of funds will improve the financial health of the banks as their capital adequacy ratio (CAR) will be raised more than desired level of 12 percent. The increase in CAR of the banks will also enable them to lend more money. The CAR of Central Bank of India was less than 12 percent as on 30 June 2006.

The wholly owned public sector bank, based in Mumbai, will convert an amount of Rs. 800 crore out of its Rs. 1,124.14-crore total equity capital into perpetual non-cumulative preference shares.The preference shares would carry an annual floating coupon rate of eight per cent, which would be benchmarked to 100 basis points above the repo rate. It will shore up the balance-sheet of the bank and enable it to raise capital from the markets.

According to an official statement, the equity capital restructuring would lead to an improvement in the bank's credit rating as also facilitate the adoption of Basel II norms.

For financial year 2008-2009, Central Bank of India's Q3 standalone net profit went up at Rs 353.26 crore from Rs 201.01 crore (YoY).
The bank's standalone net interest income, NII was up at Rs 671.94 crore versus Rs 544.85 crore (YoY).

Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open representative offices in five locations - Singapore, Dubai, Doha, London and Hong Kong. This is the first time the bank is venturing an independent overseas foray after the Sethia scam in the 1970s forced the bank to close down its London office. RBI had then asked the other two banks, who had operations in London, to close down.

As on 31 March 2011, the bank's reserves and surplus stood at Rs. 6,868.85 crore. Its total business at the end of the last fiscal amounted to Rs. 2,09,757.33 crore.The bank had a staff strength of 37,241 as on Nov 2006.

Central Bank of India partnered with TCS[ Tata Consultancy Services ] for its Core Banking Solution. The solution set to be implemented will include B@NCS from Sydney-based Financial Network Solutions (FNS), Exim Bills Trade Finance software from China Systems and eTreasury from TCS. With all of its branches in the core banking system (CBS).

History


It was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir Pherozesha Mehta as Chairman, and claims to have been the first commercial Indian bank completely owned and managed by Indians.

In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the Alliance Bank of Simla
Alliance Bank of Simla
The Alliance Bank of Simla was a British-run though India-registered bank that commenced operations in Simla in 1874. Early In 1913, it acquired some of the assets and liabilities of the Bank of Upper India, which had been founded in Meerut in 1863 and had been the first joint-stock bank in India....

.

In 1969, the Indian Government
Government of India
The Government of India, officially known as the Union Government, and also known as the Central Government, was established by the Constitution of India, and is the governing authority of the union of 28 states and seven union territories, collectively called the Republic of India...

nationalized the bank on 19 July, together with 13 others.

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