NEWS
Central Bank of India writes off Rs 7,856 cr, Q1 net up 78%
Central Bank of India’s gross NPAs fall to 4.95% in Q1, the lowest since March 2013; Net NPA at 1.75% is lowest since September 2011.
Central Bank of India’s gross NPAs fall to 4.95% in Q1, the lowest since March 2013; Net NPA at 1.75% is lowest since September 2011.
Central Bank of India’s bad loans fell sharply for the fiscal first quarter ended June 2023 on the back of a write-off of Rs 7,856 crore.
The state-owned bank, which reported a 78% year-on-year rise in net profit to Rs 418.4 crore in the April-June quarter, saw its gross non-performing assets (NPAs) fall to 4.95% of gross advances versus 14.9% a year ago.
Net NPAs narrowed to 1.75% in the June quarter compared to 3.93% a year earlier.
The bank’s gross NPA ratio was the lowest since 4.8% in March 2013 and the net NPA was the lowest since 1.37% in September 2011.
In absolute terms, gross NPAs fell to Rs 10,891 crore at the end of June from Rs 29,002 crore a year ago. Net NPAs stood at Rs 3,718 crore as against Rs 6,785 crore in the same quarter last year.
The provision coverage ratio improved by 562 basis points year-on-year to 92.23%.
Total provisions rose 44% to Rs 1,420 crore from Rs 986 crore a year ago. Sequentially, provisions fell 7.61% from Rs 1,537 crore at the end of March.
The lender provisioned Rs 632 crore towards standard assets and Rs 244 crore towards NPAs.
NPAs in the ‘corporates and others’ category fell sharply to Rs 2,781 crore from Rs 14,915 crore.
NPAs in agriculture & allied stood at Rs 3,650 crore as on 30 June compared with Rs 6,127 crore a year ago.
Q1 profit and NIM
While Central Bank of India reported a 78% year-on-year rise in net profit to Rs 418.4 crore in the quarter ended June 2023, sequentially earnings fell 26.8%.
The bank’s net interest income - the difference between interest earned and interest expended - rose 48% to Rs 3,176 crore in the June quarter.
The net interest margin (NIM) improved to 3.62%, showing a growth of 74 basis points.
Deposits and Advances
Gross advances rose 12.95% to Rs 2.2 lakh crore in the June quarter.
Deposits grew slower at 6% in the fiscal first quarter to stand at Rs 3.63 lakh crore.
The credit-to-deposit (CD) ratio improved to 60.75%, showing an improvement of 371 basis points from the year-ago period.
Capital adequacy
The capital adequacy ratio of the bank improved to 14.42% from 13.33% in the same quarter of FY23.
The return on Assets (ROA) stood at 0.43%, compared to 0.27% in the same quarter a year ago.
