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INTRODUCTIONCentral Bank of India (Marathi: ), a government-owned bank, is one of the oldest and largest commercial banks in India. It is based in Mumbai.[2] The bank has 3,563 branches and 270 extension countersacross 27 Indian states and three Union Territories. Mr. M.V TANKSALE [3] has been appointed as Chairman & Managing Director, Central Bank of India with effect from June 29, 2011. Prior to his appointment as Chairman & Managing Director, Central Bank of India Shri Tanksale was the Executive Director, Punjab National Bank since March 2009. Central Bank of India, one of the leading Public Sector Banks in the country has paid a Dividend of 192.66 crore to the Government of India for the Financial Year 201011. Shri M V Tanksale, Chairman & Managing Director, Central Bank of India has handed over the Dividend Cheque of 192.66 crore to (Centre) Honble Union Finance Minister Shri Pranab Mukherjee on 19/08/2011 at New Delhi. Central bank of India is one of 18 Public Sector banks in India to get recapitalisation[4] finance from the government over the next 24 months. The infusion of funds will improve the financial health of the banks as their capital adequacy ratio (CAR) will be raised more than desired level of 12 percent. The increase in CAR of the banks will also enable them to lend more money. The CAR of Central Bank of India was less than 12 percent as on 30 June 2006. The wholly owned public sector bank, based in Mumbai, will convert an amount of 800 crore out of its 1,124.14-crore total equity capital into perpetual non-cumulative preference shares.The preference shares would carry an annual floating coupon rate of eight per cent, which would be benchmarked to 100 basis points above the repo rate. It will shore up the balance-sheet of the bank and enable it to raise capital from the markets. According to an official statement, the equity capital restructuring would lead to an improvement in the bank's credit rating as also facilitate the adoption of Basel II norms. For financial year 2008-2009, Central Bank of India's Q3 standalone net profit went up at 353.26 crore from 201.01 crore (YoY). The bank's standalone net interest income, NII was up at 671.94 crore versus 544.85 crore (YoY).[5] Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open representative offices in five locations - Singapore, Dubai, Doha, London and Hong Kong. This is the first time the bank is venturing an independent overseas foray after the Sethia scam in the 1970s forced the bank to close down its London office. RBI had then asked the other two banks, who had operations in London, to close down.[6] As on 31 March 2011, the bank's reserves and surplus stood at 6,868.85 crore. Its total business at the end of the last fiscal amounted to 2, 09, 757.33 crore.The bank had a staff strength of 37,241 as on Nov 2006. Central Bank of India partnered with TCS[ Tata Consultancy Services ] for its Core Banking Solution.[7] The solution set to be implemented will include B@NCS from Sydney-based Financial Network Solutions (FNS), Exim Bills Trade Finance software from China Systems and eTreasury from TCS. With all of its branches in the core banking system (CBS).

HISTORY AND EVALUATIONCentral Bank of India is one of the oldest commercial banks of India, and reportedly is the first truly Indian bank which was totally owned and established by Indian without any foreign help. Sir Sorabji Pockhanawala was the founder of the bank, who had always dreamt of establishing a thoroughly Indian bank, who was so happy and excited about the project that he reportedly termed the Central Bank of India as property of the nation and the countrys asset. The first Chairman of the bank was Sir Pherozesha Mehta, a yet another Indian enthusiast. In the year 1969 the bank was nationalized by the Government of India. Key Attributes Central Bank of India claims to be the first bank to be conferred with the National Award for Excellence in Micro and Small Enterprises (MSE) Lending for the year 2007-08. The bank entered a partnership with Kotak Mahindra Assets Management Company in December 2008, under which all the Kotak Mutual Fund products will be made available through Central Bank of India branches. Products and Services Central Bank of India offers a host of banking services to its customers including Regular Banking Services such as Deposits and Loans, International Banking Services, and other services including Centralcard Electronic Cards, Debit Cards, No-Frills Savings Deposit Account under the name Cent Bachat Khata, and Finance options for domestic and international tours under the name Cent Safar. Presence in India Central Bank of India has a strong presence in the country with over 3000 branches and more than 250 extension counters nationwide as of April 2009. The headquarters of the bank are located in Mumbai, the financial capital of India, along with 16 other zonal offices established in different cities of the nation, including Agra, Ahmedabad, Bhopal, Chandigarh, Chennai, Guwahati, Hyderabad, Kolkata, Lucknow, Mumbai Metro Zonal Office, Muzaffarpur, Nagpur, New Delhi, Patna, Pune and Raipur. Management Discussions

ECONOMIC SCENARIOGLOBAL DEVELOPMENTSThe after effects of the financial crisis of the 2008 have continued to impact globaleconomy. The recovery process which started since then is beginning to freeze and thesovereign debt crisis in the euro zone area has started threatening the very survival ofthe Euro Zone. The global economy grew by 3.9% in 2011 against 5.3% in 2010 and expectedto further fall to 3.5% in 2012 as per the International Monetary Funds (IMF) April2012 update of the World Economic Outlook (WEO). Gross domestic product (GDP) growth inadvanced economies declined to 1.6 % in 2011 compared to 3.2 % in 2010 and again expectedto fall to 1.4% in 2012. Similar trend is seen in emerging economies as they slowed to 6.2% in 2011 compared to 7.5 % in 2010 and likely to fall to 5.7% in 2012.

DOMESTIC ECONOMY Indian Economy in 2011-12 was surrounded by concerns of high inflation, bourgeoning fiscal deficit and pronouncing current account deficit. The Economic growth moderated to6.5% as per revised estimates of CSO against 8.4% seen in 2010-11. The growth has been disappointing on account of current uncertain global conditions and one of the worst performances in domestic industrial sector. All the three sectors viz. agriculture, industry and services slowed down in 2011-12.Agriculture and allied agriculture growth fell to 2.8% against a high achievement of 7% in2010-11, despite a record food grain production of 250 million tons in 2011-12.Thecontribution of agriculture and allied activities to GDP is only 14% but slow-down in agriculture growth has severe impact on the employment in this sector, that has a share inemployment as high as 55%. The growth in services sector including construction sector is estimated to grow at 8.5 % in 2011-12 as against 9.2% in 2010-11 reflecting the down-turn in construction growth. The industrial growth slackened due to the disappointing performance of mining and manufacturing. The index of industrial production for the 2011-12 grew at 2.8% as against8.2% in 2010-11.This is on account of slow recovery in the US and Europe and due to tight monetary policy affecting the overall investors confidence. The month-wise growth inIIP exhibited high volatility on account of fluctuation in growth of capital goods. The growth in capital goods declined from 37% in June 2011 to negative 25% in October 2011.The growth in Index of eight core industries viz. Coal, Crude oil, Natural gas etc.contributing 38% to the IIP has also fell to 4.3% during April-March 2011-12 compared to6.6% during the corresponding period of the previous year. There has also been decline incapacity utilization in various infrastructure sectors, to name a few like cement and thermal power during April-November 2011-12. On external front, the merchandise exports in 2011-12 has increased by 21% amounting to$304 billion, thereby surpassing the indicative target of $300 billion set for the year. The imports however too increased by 32% amounting to $488 billion resulting in trade deficit of $184 billion. This has widened current account deficit (CAD) to US$ 53.7billion (4.0% of GDP) from US$ 39.6 billion (3.3 % of GDP) in April-December 2010. The major concern during FY 2012 has been the inflation. For the whole year headlineWPI Inflation remained high at around 9%, although it showed some moderation toward the end of the financial year. It started with 9.7% in April 2011 reached its peak at 10% in September 2011 and then declined to 6.9% in March 2012. The major contributors to the high level of inflation are crude oil, primary articles, metal and chemical prices. The Rupee against dollar has fallen sharply during the year. In beginning of the financial year the exchange rate was at Rs. 44.37 /$ fell to Rs. 52.68/$ in December11rose moderately to Rs.51.76 /$ in March12. This has been primarily because of the large current account deficit and balance of payments deficit. MONETARY DEVELOPMENTS For the FY 2011-12, the main focus of Monetary Policy was to curb inflation and anchoring inflationary expectation. The overall liquidity position during the year has remained in a squeezed mode. Average net injection of liquidity under the daily liquidity adjustment facility (LAF) surged from a low Rs. 4000 crore at the beginning of financial year to Rs. 50 thousand crore in September 2011 to around Rs. 1.4 Lakh croreduring February 2012 and further to Rs. 1.6 Lakh crore during March 2012. To ease liquidity deficit, the RBI conducted

BANKING The Aggregate deposit growth for the financial year has been 17.4% that is marginally above the 17% indicative target set by the RBI. The main reasons behind the slow deposits growth were high inflation and depositors moving their funds to better