Shares of this public sector bank under the ‘mid-cap’ category zoomed 10 percent on Friday after entering into a co-lending partnership with an NBFC company for MSME Loans.
With a market capitalization of Rs 44,151.26 crores, the stocks of Central Bank of India closed at Rs 50.86 on Friday. The scrip witnessed an intra-day high of Rs 51.70 indicating a gain of around 10 percent as compared to the previous closing levels of Rs 46.92 apiece.
Such sharp movements in the Bank’s stock are observed after a regulatory filing with the Bombay Stock Exchange (BSE) dated 22nd September 2023 announcing a co-lending partnership with M/s. ECL Finance Limited for MSME Loans. Participation by both the above entities in the co-lending arrangement will result in greater expansion of their portfolio.
Headquartered in Mumbai, M/s. ECL Finance Limited is engaged in the business of providing MSME Business Loans, loans against property to businesses, Supply Chain Financing, etc.
Digging into the annual consolidated financials of the Bank, the total income figures have seen decent improvement taking an upward shift from Rs 25,870.83 crores during FY21-22 to Rs 29,741.59 crores during FY22-23. Moreover, the net profits of the Bank increased from Rs 1,064.5 crores to Rs 1,609.33 crores keeping the timeframe the same.
Having a say on the Bank-specific ratios, the net non-performing assets (NPA) ratio of the Bank has successfully fallen down in the past couple of financial years with the most recent movement being from 3.97 percent during FY21-22 to 1.77 percent during FY22-23.
In addition, the net interest margin (NIM) of the Bank moved up from 2.63 percent to 3.06 percent during the same time horizon.
The shareholding pattern of the Bank, as per the latest quarter ending June 2023, exhibits the President of India, the sole Promoter of the Bank, holding a 93.08 percent stake, and the Foreign Institutional Investors (FIIs) holding a 0.15 percent stake in the Bank.
Established in 1911, the Central Bank of India (CBI) is a Banking Institution providing personal banking services including corporate loans, deposits, agricultural loans, micro, small and medium enterprises (MSME) schemes, and many more.
Written by Amit Madnani
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