Central Bank of India today announced a cut of 0.25 per cent in its base rate. "We have scaled down our base rate from 10.50 per cent to 10.25 per cent, effective February 9," the bank said in a statement.
M V Tanksale, chairman and managing director of Central Bank of India, says non-performing assets (NPAs) in the banking system will grow for a while and as long as credit creation will be there, there will be slippages.
Banks that have higher proportion of deposits maturing in the second half of this financial year are likely to restrict further decline in their net interest margin as interest rates are expected to fall in coming months.
Central Bank of India has tumbled 13% to Rs 76.90 after reporting net loss of Rs 105 crore for the fourth quarter ended March 2012, due to higher provisioning. The state-owned bank had posted a net profit of Rs 133 crore in a year ago quarter.