Central Bank signs MoU with NCDEX

Central Bank of India has entered into a memorandum of understanding with NCDEX Spot Exchange (NSPOT), the e-market place for farmers. The objective is to cater to the needs of the farmers, agri processors and market participants. A tri-partite agreement was signed by Central Bank of India, NSPOT and two collateral managers viz. Navjyoti Commodities and Origo Commodities in AP and Karnataka States. Central Bank of India is the first Bank to provide this type of facility to the farmers in these two States. Speaking on the occasion, N. K. Balakrishnan, Field General Manager said the bank’s association with NSPOT will promote easy finance to farmers against their stock and will also bring in transparency and efficiency in lending operations benefiting farmers, traders, SMEs etc.

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Central Bank of India's Tier I-II bonds downgraded by CRISIL

Rating agency CRISIL has downgraded the tier-I and tier-II bonds ofCentral Bank of India to ‘AA’ from ‘AA+’ on expected weakening of credit profile on the sustained deterioration in asset quality and earnings. 
The Mumbai-based public sector lender is witnessing a sharp and sustained deterioration in asset quality. Its gross non-performing assets (NPA) increased significantly to 6.0 per cent as on June 30, from 1.8 per cent as on March 31, 2011.  The deterioration in the bank’s asset quality is also reflected in its higher-than-industry-average slippages at 5.6 per cent (annualised) for the quarter ended June 30, (3.5 per cent in 2012-13), CRISIL said in a statement

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Central Bank not to raise lending rates now

State-run Central Bank of India (CBI) is not planning to increase its lending rate even though it has been witnessing an uptick in cost of funds following RBI’s liquidity tightening moves, a top official said today.

“Last two months, we have seen an escalation in cost of funds. But whether this is going to result in a change of base rate, I don’t think so as of now,” its new chairman and managing director Rajeev Rishi told reporters. He said the bank may think of raising the base rate or the minimum rate of lending as and when a need arises.

“Our base rate is at 10.25 per cent and I am comfortable as of now,” Rishi said.

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Central Bank of India raises interest rates to 9.50% on high value deposits

Public sector Central Bank of IndiaBSE 4.66 % (CBOI) today said it has raised interest rates on high value deposits by 50 basis points to 9.50 per cent. 

Minimum amount of deposit acceptable under the scheme called 'Cent-Benefit Deposit' is Rs 1 crore and there is no maximum cap, said an official release here.  The scheme will have a tenor of 14 days to 179 days. Targeted at High Net-worth Individuals ( HNI), cash- rich corporates and government departments, there will be no penalty on premature withdrawals under this scheme, it said.

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