Public sector lender, Central Bank of India has decided to sell off some of its bad loans. The bank plans to sell bad loans worth Rs 3-4 billion to asset reconstruction companies in this fiscal, a senior official of the bank said.

Executive Director of the bank, Arun Kaul said that the bank has sold non performing assets worth Rs. 3.5 billion to asset reconstruction firms in the last fiscal.

The gross NPAs of the bank stood at 2.29% as on 31st March 2010 which is a decline from last year's figures of 2.67%.

"We have a provision coverage ratio of 70 percent," Kaul said.

The bank has booked a net profit of Rs. 1.71 billion for the March quarter which is a rise from Rs. 0.62 billion which the bank booked a year ago as net profits for the same period.