• Central Bank of India Share Price

    Central Bank of India is a government-owned commercial bank in India. Based in Mumbai, India, it is one of the largest and oldest financial institutions in the country.

    Market Capitalisation

    The market cap of Central Bank of India, as of August 2, 2018, is a little over Rs.19,500 crore.

    Company’s Wealth and Recent Performance

    • For the first quarter of the financial year 2018-19, the bank’s total income was reported to be at Rs.5,905 crore, as against Rs.6,871 crore reported for the corresponding quarter last year. For the 2018 June quarter, the bank reported its net interest income to be at Rs.213 crore owing to depleted treasury gains.
    • A similar dip was also seen in the operating profit for the June quarter. The amount decreased from Rs.451 crore for the quarter ended June 30, 2017, to Rs.384 crore.
    • Considering the net loss for the quarter ended June 30, 2018, the figure stood at Rs.1,522 crore in a stark contrast to a loss of Rs.577 crore reported for the corresponding quarter of the previous fiscal year. This threefold increase in loss came on the account of a sharp rise in provisions for bad loans.
    • The total business of the bank reported a marginal increase by 0.47% as against the June quarter of 2017, to Rs.4,66,360 crore.
    • Considering the asset quality of Central Bank of India, the Gross non-performing assets (NPA) ratio jumped to 22.17% by the end of June 2018, from 18.23% reported for the same quarter of the previous year. Net NPA, on the other hand, improved marginally from 11.10% as on March 2018 to 10.58% as on June 30, 2018.
    • CASA ratio for the June quarter increased to 42.72% from 39.48% reported in June 2017. The company’s gross advances also registered a y-o-y growth of 0.47%.

    Central Bank of India Stock Trends in 2016 and 2017

    • At the start of January 2016, the stock price of Central Bank of India was at levels of around Rs.70. Over the course of the month, the price dipped to enter the Rs.50 territory, resulting in a drop of roughly 20%. However, the shares recovered starting in mid-February to recuperate its previous losses.
    • Through March and April, the Central Bank of India share price rose by more than 20% to touch the Rs.80 mark. The prices dipped slightly in the first half of May, but only to be followed by a sharp rise in the stock price over the next few weeks. The scrip gained more than 35% to cross the Rs.100 mark. By late June, the Central Bank of India shares were being traded at levels varying between Rs.100 - Rs.110.
    • In July 2016, the prices dipped slightly but the stocks maintained their bearings at levels above Rs.90. The prices rose once again in the second half of August and by early September, the prices were once again back to their previous levels at Rs.105.
    • This dramatic rise in the share price was almost immediately followed by a bull run which lasted for the remainder of the year. The Central Bank of India shares lost a little over 20% to descend into the Rs.80 territory by late November. The closing price of the scrip on December 30, 2016 was Rs.83.50.
    • January 2017 was an uneventful month for the investors. The year started on a dull note and the scrip didn’t make any steady gains. The prices rose slightly in February but it wasn’t until towards the end of the month that the prices registered a sharp increase.
    • By the end of March 2017, the shares had gained a little over 15% to ascend back to their previous levels at Rs.100. In April, the stock price of Central Bank of India stabilised at those levels, although in May, the scrip registered another meteoric rise. This time, the shares soared into the Rs.120 territory.
    • However, this phenomenal rise was followed by a sharp bull run which took the price down by a significant margin. This gradual drop in the prices was seen over the months of June, July, and August. The scrip shed heavily in these three months, with the price descending back into the Rs.70 territory in the second half of August.
    • After sustaining heavy losses, the share price of Central Bank of India staged a dramatic recovery in the first half of September. The prices bounced back to cross the Rs.100 mark. However, this sharp spike in the prices was immediately followed by a nosedive and once again, the scrip lost heavily.
    • The share price of Central Bank of India in the final three months of the year was on a downward trajectory. The scrip declined gradually to end the year at Rs.72.15 on the National Stock Exchange.

    Central Bank of India Stock Trends in 2018

    • On January 2, 2018, the opening price of Central Bank of India shares was Rs.74.70 on the NSE. The prices didn’t vary a lot in the first month, although the shares did register a marginal decline in the period. The closing price on January 31, 2018, was Rs.73.05.
    • In the month of February, however, the share price dropped massively on account of turbulence in the international markets. The month proved to be a rather rocky one for the investors as the share price fluctuated dramatically. The closing price of the scrip at the end of February was Rs.65.30.
    • In March, the share price rose by a little over 10% to cross the Rs.75 mark. However, this rise was immediately followed by a dip which took the price back to its previous levels. The closing price on March 28, 2018, was Rs.72.35.
    • In April, the share price of Central Bank of India stabilised at levels around Rs.69. The closing price on April 30, 2018, was Rs.70.25 on the NSE. In May, the share price dipped once again but the stocks still managed to end the month on a positive note.
    • The month of June proved to be quite rocky for the investors. In the first half of the month, the share price rose steadily to touch the Rs.80 mark, although this rise immediately followed by a sharp drop in the price. The closing price at the end of June was Rs.69.20. As of the month of July, it was quite uneventful for the investors. The scrip didn’t make any substantial gains and the share price at the end of the month was Rs.69.90.

    Should you invest in Central Bank of India?

    • Central Bank of India is a government-owned bank, which also happens to be one of the oldest banks in India. For the quarter ended June 30, 2018, the company reported its total income to be at Rs.5,905 crore - a decline of a little over 10% as against the same quarter of the previous year.
    • A more dramatic loss was seen in the profitability of the company for the June quarter. The company’s net loss for the quarter increased to Rs.1,522 crore from Rs.577 crore reported for the June quarter of 2017. This marks an increase of more than 200% that came on the account of provisions for bad loans.
    • The bank’s net NPA ratio stands at 10.58%, which is considerably high for a public sector bank. Considering its performance with respect to its peers, it is right on the top with its prominent peers like the State Bank of India, Bank of Baroda, IDBI Bank, and Canara Bank.
    • Considering the performance of the stock of Central Bank of India, the scrip has shed close to 5% since the start of 2018. The share price rose on a couple of occasions but only to follow that rise with a nosedive. In 2017 as well, the share price of Central Bank of India rose by roughly 20%, only to shed all those gains by the end of the year.
    • From a long-term perspective, the stock hasn’t delivered exceptional gains. However, at its present levels at around Rs.69, it does make for an attractive buy to hold for a short period. Before investing in this scrip, it is strongly recommended that you do your own research.

    Company Information

    Central Bank of India is an Indian bank owned by the Government of India. Headquartered in Mumbai, India, the bank’s network comprises of 4,715 branches and 10 satellite offices spread evenly across the country. The bank offers a variety of financial services and products such as debit cards, credit cards, deposit accounts, loan facility, et cetera. Established in 1911, it is one of the oldest commercial banks in the country.

    History of the Company

    The Central Bank of India was established in the year 1911 as an Indian commercial bank which was fully owned and managed by Indians. During its early years, the company launched a variety of schemes such as Savings Deposit Scheme to promote the habit of saving in the Indian society. Over the years, it also launched the safe deposit locker facility and deposit insurance benefit scheme. After the nationalisation of the bank in 1969, the organisation continued to implement a number of innovative schemes to strengthen its operations and solidify its position in the Indian market. It has also been playing an important role in promoting developments in the crucial segments of agriculture, small-scale industries, medium-scale industries, and large industries.

    Management of the Company

    Mr. B.K. Divakara - Executive Director

    Mr. Divakara presently serves as the Executive Director of the Central Bank of India - a post he has held since January 2014. Prior to this, he was associated with the Corporation Bank where he served as the Deputy General Manager and General Manager.

    Mr. Tapan Ray - Non Executive Chairman

    Mr. Ray, IAS, presently serves as the Non Executive Chairman of the Central Bank of India. He was appointed to this post in May 2018. Prior to his appointment to this post, he served as the Managing Director of GSFS Capital Securities Limited and Gujarat State Petroleum Corporation Limited. In addition to this, he also served as the Principal Secretary for Economic Affairs, Finance Department, Government of Gujarat from June 2006 to November 2009. As a former senior IAS Officer, he has an administrative experience of more than 25 years.

    Mr. Pikkili Ramana Murthy - Executive Director

    Mr. Murthy presently serves as the Executive Director of Central Bank of India. He has been associated with the company since February 2017. In addition to this, he also serves as the General Manager of Allahabad Bank and as the Director of the New India Assurance Co. Limited.

    Central Bank of India Stock Listings in NSE, BSE, and Indices

    The equity shares of Central Bank of India are available to public for trading on the National Stock Exchange of India Limited and the Stock Exchange, Mumbai. The respective codes for the same are as follows:

    • NSE Code: CENTRALBKEQ
    • BSE Code: 58888
    • ISIN: INE483A01010
    • Sector: Finance - Banks - Public Sector

    Coming to the stock market indices, the company forms a part of the following:

    • NIFTY 200
    • NIFTY Full Midcap 100
    • NIFTY Midcap 100
    • NIFTY Midcap 400
    • NIFTY 500
    • S&P BSE 200
    • S&P BSE 400 MidSmallCap
    • S&P BSE Finance
    • S&P BSE PSU
    • S&P BSE 500

    Corporate Office

    Central Bank of India

    Chander Mukhi, Nariman Point

    Mumbai - 400-021

    Maharashtra, India

    Contact number: 022-6638-7777

    Email: investors@centralbank.co.in

    Stocks vs. Mutual Funds: here's what we recommend

    Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.

    DISCLAIMER:

    The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.

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