Central Bank of India’s Q2FY24 net profit soars 90 pc at ₹605 cr

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Central Bank of India’s (CBoI) second quarter (Q2FY24) net profit soared 90 per centy-o-y to ₹ 605 crore, supported by growth in net interest income and other income and a sharp decline in provisions, including towards standard assets. 

The public sector bank, whose total business crossed the ₹ 6 lakh crore milestone in the reporting quarter, posted a net profit of ₹318 crore in the year-ago quarter.

Net interest income was up 10 per cent y-o-y at ₹3028 crore (₹ 2747 crore in the year ago quarter).

Other income, including fee-based income, treasury income and recovery in written-off accounts, rose 16.59 per cent y-o-y to ₹ 1061 crore (₹ 910 crore).

The Bank’s operating profit declined about 12 per cent y-o-y to ₹1530 crore (₹1748 crore).

Provision breakdown

A breakup of provisions shows that while provisions towards bad loans shot up 80 per cent y-o-y to ₹1929 crore (₹1070 crore), the Bank received provision write-back on standard assets aggregating ₹837 crore (₹162 crore). Write-back on account of depreciation/ provisions on Investment Including Security Receipts was at ₹167 crore (₹95 crore).

CBoI also received an income tax write-back of ₹42 crore (₹305 crore provision in the year-ago period).

Net interest margin (interest income – interest expense/ total assets) stood at 3.43 per cent against 3.44 per cent a year ago.

Gross non-performing assets (GNPAs) position improved to 4.62 per cent of gross advances as at September-end 2023 against 4.95 per cent as at June-end 2023. Net NPAs position too improved to 1.64 per cent of net advances against 1.74 per cent.

Gross advances increased by 17.26 per cent y-o-y to ₹2,31,032 crore as of September-end 2023, with RAM (retail, agriculture and MSME) and corporate advances recording 14.24 per cent and 23.54 per cent growth, respectively.

Total deposits (Including Interbank Deposits) rose by 8.21 per cent y-o-y to stand at ₹3,71,252 crore as at September-end 2023.The share of current account, savings account deposits declined to 49.40 per cent of total deposits from 50.99 per cent.