The Hindu : Centurion Bank CMD term extended

Online edition of India's National Newspaper
Saturday, Jul 05, 2003

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Centurion Bank CMD term extended

NEW DELHI JULY 4. Centurion Bank today extended the term of its Chairman and Managing Director, V. Janakiraman, by another six months.

Mr. Janakiraman, who was appointed by the Reserve Bank of India to assist the private bank in tiding over its crisis, will continue as chairman till January 4, 2004, the bank said in a statement. The decision was taken by the bank in the wake of a significant improvement in its financial position under his leadership.

Centurion Bank is slated to come out of the red this fiscal after reducing its net losses drastically to Rs. 25.36 crores last fiscal from Rs. 161.84 crores in 2001-02.

The bank expects to come out of the red this fiscal and targets to double its assets to over Rs. 7,500 crores by 2004-05 after capital infusion of about Rs. 219 crores from its strategic partners.

A former managing director of State Bank of India, Mr. Janakiraman assisted the bank in roping in foreign strategic players, Bank of Muscat and Sabre Capital, while preparing a capital restructuring plan.

The capital restructuring would be in two phases — Rs. 154 crore infusion from the four partners and then a Rs. 65 crore rights-cum-public issue in the second half of this fiscal.

— PTI

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