Public sector lender Central Bank of India has shed around Rs 5,000 crore of

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high cost deposits in the first half of the current fiscal to protect its net interest margin (NIM), a top official of the bank has said.

"Shedding of high cost deposit is necessary in the current interest rate environment. At Central Bank of India, we have shed around Rs 5,000 crore of high cost deposits in the first half of this fiscal," Executive Director V R Iyer told PTI here.

She said the bank is continuously evaluating its deposit portfolio to adjust high cost of borrowing in the present environment.

The city-based lender, which has been witnessing a deposit growth of over 18 per cent in the first eight months of this fiscal, is also hopeful of posting around 20 per cent growth in advances during this financial year.

"Though advances are little subdued as of now, we are hopeful of posting a 20 per cent growth in advances in the current fiscal," Iyer said.

About sectors which are showing growth in advances, she said except corporate, others like agriculture, retail and MSME sectors are witnessing good demand in credit as of now.

"We are not facing any pressure on retail or MSME loan portfolio till this time."

About capital raising plans, she said the bank is well capitalised to support credit growth and doesn't need capital in the current fiscal.

The bank had raised around Rs 2,500 crore capital through a rights issue in April to support its growth. "We have a headroom to raise capital through issuance of Tier-II bonds but we are not looking at it in the current fiscal."

The bank posted 35 per cent decline in net profit to Rs 244.25 crore in the second quarter despite a 34.5 per cent spike in income to Rs 5,234 crore.