RTC MCB2300

I am trying to use the RTC interrupts to count seconds. However it only runs in debug mode and also in this increments one second in 1 and 1/2 minutes. Do I have to set any flags before using the RTC? I am trying to to the counting using the internal RTC clock

This is how I initialized it

        PCONP |= 0x200;  // Enable power for RTC
        RTC_CCR = 0x12 //Reset clock and select RTC clock from 32KHz oscillator
        RTC_ILR = 0x1;  //Clear the Interrupt Location Register
        RTC_HOUR = 0x2;
        RTC_MIN = 0x1;
        RTC_SEC = 0x5;
        RTC_CIIR =0x1;  //enable seconds counter interrupt
        RTC_CCR = 0x11;  // start RTC
        VICIntSelect = 0x000;
        VICIntEnable = 0x2000;
        VICVectCntl13 = 0x2D;
        VICVectAddr13  = (unsigned int)read_rtc;

The interrupt function was written as follow

void read_rtc() __irq
{
        int hour = 0;
        int min = 0;
        int sec;


        hour = (RTC_CTIME0 & MASKHOUR)>>16;
        min = (RTC_CTIME0 & MASKMIN)>>8;
        sec = RTC_CTIME0 & MASKSEC;

        if (sec == 0x6)
        {FIO2SET = 0xFF;}
        RTC_ILR= 0x1;
        VICVectAddr = 0x0;
}