Central Bank of India’s Q4FY23 net profit soars 84% to ₹571-cr

The Central Bank of India (CBoI) reported an 84 per cent jump in its stand-alone net profit for the fourth quarter at ₹571 crore as against ₹310 crore in the year-ago quarter due to strong growth in net interest income and other income.

Net interest income (the difference between interest earned and interest disbursed) increased by around 45 per cent year-on-year (YoY) to Rs.3,513 crore (Rs.2,416 crore).

Non-interest income, which includes fee-based income, treasury income and recoveries on written-off accounts, among others, rose 125 per cent year-on-year to Rs.1,424 crore (Rs.632 crore).

The net interest margin (NIM) improved to 6.67 percent in the reported quarter, compared to 6 percent in the previous quarter and 4.83 percent in the year-ago quarter.

Allocations go up

Provisions including non-performing assets (NPAs), standard assets and non-performing investments increased by around 14 per cent year-on-year to Rs.1,205 crore (Rs.1,061 crore).

Total NPAs decreased to 8.44 percent of total advances as of the end of March 2023 from 8.85 percent as of the end of December 2022.

Net NPAs fell to 1.77 percent of net advances from 2.09 percent.

Bank deposits increased by 4.84 per cent year-on-year to stand at INR 359,296 crore at end-March 2023 (Rs. 3,42,692 crore at end-March 2022).

Total advances increased by 20.70 per cent year on year at ₹2,02,984 crore (₹1,68,174 crore).

The public sector bank said its board of directors has approved a capital increase of up to Rs 2,500 crore during the 2023-24 financial year.

The capital increase will be through a follow-up public offering/rights issue/qualified institutional placement/preferential placement or other status or combination thereof and/or through the issuance of AT1/Tier II non-compliant BASEL notes.