Public Issue of CENTRAL BANK OF INDIA

Issue Opens	July 24, 2007
Issue Closes	July 27, 2007
Issue Type	100% Book Building
Issue Size	8,00,00,000 Equity Shares
Price Band	Rs. 85.00 - Rs. 102.00
Face Value	Rs. 10/-
Lot Size	60 shares

Company Profile

Central Bank of India (CBoI), founded in 1911 was nationalized in the year 1969,

and is currently wholly owned by the GOI. CBoI is the third largest bank in India

based on number of branches. As of March 31, 2007, CBoI had 3,194 branches

(Central India 27.4%, East - 25.4%, West- 22.2%, South - 12.4%, North - 12.4%),

267 extension counters, 261 ATM’s, 34 satellite offices, 17 zonal offices and 78

regional offices in 27 states and 3 union territories. It has implemented the Core

Banking Solution (CBS) in 324 branches and 29 extension counters, covering

approximately 35.4% of their total gross deposits and advances. CBoI subsidiaries

include Centbank Financial and Custodial Services Limited’ (PAT Rs1.69mn FY07), &

Cent Bank Home Finance Limited’ (PAT Rs50.28mn FY07), CBoI has also sponsored

11 Regional Rural Banks in collaboration with the state governments of MP,

Chhattisgarh, Bihar, Maharashtra, UP and Rajasthan. It has an overseas JV bank in

Zambia (Indo-Zambia Bank Limited) with 20% ownership interest.

Going forward CBoI plans to improve customer service by implementing CBS

to

cover ~80% of the business, increase number of ATM from 261 to 500. It is looking

at entering into ATM sharing agreement with other banks and also planning to join

VISA network all by end of FY08. It proposes to leverage on the extensive branch

network and large customer base to increase CASA from current 42% and to

increase fee based income by cross selling and distributing third party products.

Objects of the issue

Augment capital to meet future capital requirement arising out of the

implementation of BASEL 2 standards and the growth in the assets

General corporate purpose. Valuation CBoI is attractively priced at 1.1x - 1.3x FY07 P/B of Rs77.6. Higher CASA, focus on increasing fee based income and acceleration in growth of loans and advances to the corporate and retail sectors would be key growth drivers for CBoI. Although the bank has brought down its net NPAs over last few years, it still stands at a high 1.7%. The CAR ratio stands at 10.4%. The key risks would be adverse movement in interest rate (HTM – 64.15%), changes in RBI policy, slow down in advances. Financial Highlights (Rs mn)