A recent press report said that Central Bank of India has entered into a tie-up with non-banking finance companies such as Future Capital, Bajaj Finance, and Reliance Capital to grow its retail portfolio. Retail portfolio of the bank, including Home Loan, auto loan and Personal Loan constituted 12.5 per cent its total advances of Rs 1, 31,407 crore as of March-end 2011.
Mr S. Sridhar, Chairman and Managing Director told the press that the bank has decided to crack the retail business and that it has put in place infrastructure, such as loan processing cells across the country.He added saying that the NBFcs that have tied up with them will originate loans for the bank.
He also said that the bank has set a target of increasing its retail portfolio by Rs 5,000 crore in the current financial year. He said that the bank has planned to increase the retail portfolio from the current 12.5 per cent to 25 per cent of the total advances in the next couple of years.
The bank has reported a 22 per cent drop in net profit at Rs 133 crore in the quarter ended March-end 2011, against Rs 171 crore in the corresponding quarter last year.