Central Bank of India ::Prabhudas Lilladher, Banks/Financials conference

􀂄 Quality over growth: The bank is looking at growth of 14%-15% in FY13 as the
current slowdown gives the opportunity to consolidate. Bank is trying to build
on retail fee income streams with doubling of 3rd party distribution income,
significant increase in ATMs (better inter-bank ATM fees) and targeting
significant increase in debit cards by yr end.
􀂄 Asset quality Outlook: CBOI believes that lumpy accounts have been accounted
for and delinquencies should normalize at ~2.0% going forward with ~Rs30bn of
annual slippages and ~Rs30-40bn of recoveries/upgrades expected. Of
Rs14.4bn of slippages in 1QFY13, Rs 8.0bn related to 5 accounts and
management expects ~Rs5bn of recoveries from 1Q13 slippages in the near
term.
􀂄 Other Highlights: (1) On the HR front, the management expects average age of
the employees to come off significantly in 5 yrs due to high retirements
currently. (2) The bank has bulk deposit of ~31% and inline with FinMin directive
aims to bring dependence down to <15 3="3" aims="aims" cboi="cboi" deliver="deliver" margins="margins" of="of" p="p" to="to">by 4Q13, ROAs of 0.8% in FY13 and 1.0% by FY14, as margins improve and
delinquencies remain under control.

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