Central Bank of India

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This article is about an Indian commercial bank. For India's central bank, see Reserve Bank of India.
Central Bank of India
Type Public company
BSE & NSE:CENTRALBK
Industry Financial
Commercial banks
Founded 21 December 1911; 102 years ago (1911-12-21)
Headquarters Mumbai, India
Key people Shri. Rajeev Rishi, Chairman & Managing Director
Revenue INR191495 million (US$3.2 billion) (2010-11)
Employees 42000(approx)
Website www.centralbankofindia.co.in
Central Bank of India, Mumbai

Central Bank of India (Marathi: सेंट्रल बँक ऑफ इंडिया), a government-owned bank, is one of the oldest and largest commercial banks in India. It is based in Mumbai.[1] The bank has 4600 branches and 4 extension counters across 27 Indian states and three Union Territories. At present, Central Bank of India has overseas office at Nairobi, Hong Kong and a joint venture with Bank of India, Bank of Baroda, and the Zambian government. The Zambian government holds 40 per cent stake and each of the banks has 20 per cent. Recently it has also opened a representative office at Nairobi, Kenya.

Central bank of India is one of 18 Public Sector banks in India to get recapitalisation [2] finance from the government over the next 24 months.

Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open representative offices in five more locations - Singapore, Dubai, Doha and London [3]

As on 31 March 2011, the bank's reserves and surplus stood at INR 68688 million. Its total business at the end of the last fiscal amounted to INR 2,22,124(approx) million.

History[edit]

It was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir Pherozeshah Mehta as Chairman,[4] and claims to have been the first commercial Indian bank completely owned and managed by Indians.

By 1918 it had established a branch in Hyderabad. A branch in nearby Secunderabad followed in 1925.

In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the Alliance Bank of Simla. The Tata bank, established in 1917, had opened a branch in Madras in 1920 that became the Central Bank of India, Madras.

Central Bank of India was instrumental in the creation of the first Indian exchange bank, the Central Exchange Bank of India, which opened in London in 1936. However, Barclays Bank acquired Central Exchange Bank of India in 1938.[5]

Also before World War II, Central Bank of India established a branch in Rangoon. The branch's operations concentrated on business between Burma and India, and especially money transmission via telegraphic transfer. Profits derived primarily from foreign exchange and margins. The bank also lent against land, produce, and other assets, mostly to Indian businesses.[6]

Post-World War II[edit]

In 1963, the revolutionary government in Burma nationalized Central Bank of India's operations there, which became People's Bank No. 1.[7]

In 1969, the Indian Government nationalized the bank on 19 July, together with 13 others.

In the 1980s the managers of the London branches of Central Bank of India, Punjab National Bank, and Union Bank of India were caught up in a fraud in which they made dubious loans to the Bangladeshi jute trader Rajender Singh Sethia. The regulatory authorities in England and India forced all three Indian banks to close their London branches.

Central Bank of India was one of the first banks in India to issue credit cards in the year 1980 in collaboration with MasterCard. Central Bank of India announces that the financial results for the year ended 2013-Total Business Rs. 402000 Cr. Net Profit-Rs. 1015 Cr. On 1 August 2013, Central Bank of India appoints new CMD Rajiv Rishi, who was previously ED of Indian Bank and General Manager of OBC and Raj Kumar Goyal as the new ED of the bank. On 1 November of the same year, the bank open its second representative office in Hong Kong.

See also[edit]

Citations and references[edit]

Citations
  1. ^ Central Bank of India. Central Bank of India (19 April 2011). Retrieved on 31 march 2014.
  2. ^ "18 govt banks to be recapitalised". Business-standard.com. 18 February 2009. Retrieved 2 August 2010. 
  3. ^ "Central Bank of India to expand overseas". Rediff.com. Retrieved 2 August 2010. 
  4. ^ "Central Bank IPO to open on 24 July". The Hindu (Chennai, India). 14 July 2007. Retrieved 5 July 2008. 
  5. ^ Raychaudhuri et al., eds. (1983), Vol. 2, p.782.
  6. ^ Turnell (2009), pp.116-7.
  7. ^ Turnell (2009), p.226.
References
  • Raychaudhuri, Tappan, Irfan Habib, & Dharma Kumar, eds. (1983) The Cambridge Economic History of India: Volume 2, c.1751-c.1970. (CUP Archive). ISBN 9780521228022
  • Turnell, Sean (2009) Fiery Dragons: Banks, Moneylenders and Microfinnance in Burma. (NAIS Press). ISBN 9788776940409

External links[edit]