Central Bank of India reports 78% jump in Q1 FY24 net profit

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Central Bank of India It announced that its net profit in the first quarter of FY24 jumped by 78 per cent year-on-year to ₹418 crore as against ₹235 crore in the previous year quarter on the back of strong growth in net interest income and sharp decline in provisions for loan losses.

Net interest income (the difference between interest earned and interest disbursed) of the Mumbai-based public sector bank increased by 48 per cent year-on-year to Rs.3,176 crore (Rs.2,142 crore).

Other income, including income (including commission) from non-fund banking activities, fees, gains on foreign exchange, gain/loss on sale of assets, gain/loss (including revaluation) from investments, and redemption from Written off accounts, etc., was up 15 per cent at Rs.959 crore (Rs.831 crore).

Net interest margin (NIM) improved to 3.62 percent from 2.88 percent in the first quarter of last year.

Also read: HDFC Bank’s Q1 net profit jumps 29% to Rs.12,370 crore

Provisions for loan losses decreased by 70 per cent year-on-year to Rs. 244 crore (Rs. 824 crore). The cost of credit fell to 0.45 percent in the reporting quarter, compared to 1.78 percent in the year-ago quarter.

Total Non-Performing Assets (NPA) to Total Advances Position improved to 4.95 per cent at the end of June 2023 on the back of a technical write-off of Rs.7,804 crore as against 8.44 per cent at the end of March 2023.

NPA’s net to net advances position improved slightly to 1.75 percent at the end of June 2023 from 1.77 percent at the end of March 2023.

Total deposits increased by 6.05% YoY at INR 3,63,398 crore as at end of June 2023. CASA (Current Account, Savings Account) low cost deposits decreased to 49.76% of total deposits as against 51.15% in the year before quarter.

Total advances increased by 12.95% YoY to stand at Rs. 2,19,863 crore, with RAM (Retail, Agriculture, MSME) and corporate advances recording growth of 12.95% and 13.15% respectively.

The capital adequacy ratio improved to 14.42 percent from 13.33 percent at the end of March 2023.