Central Bank of India’s first-quarter net profit grew by about one-fifth as the bank earned a higher interest on its advances.
For the April to June quarter, the bank’s net profit grew to about Rs 336 crore from Rs 281 crore, a year ago. Interest on advances grew about 16 per cent to Rs 5,303 crore (Rs 4,558 crore, a year ago).
“It is a very good turnaround for the bank, especially as this comes on the back of disappointing results in the previous quarter (sequentially),” Mr. M.V. Tanksale, Chairman and Managing Director, Central Bank of India said.
Slippages for the bank increased to Rs 1,448 crore from Rs 598 crore in the quarter. The bank wrote-off Rs 287 crore of bad loans in the quarter ended June 30. 2012.
The bank restructured loans worth Rs 2,674 crore spanning about 28 accounts in the first quarter. Out of this, electricity distribution companies accounted for about Rs 2,400 crore in an indication that balance sheet of electricity companies continue to be stressed.
“Going forward, we will continue to reduce our focus on corporate credit and increase our focus on retail credit,” Mr Tanksale said. The banks’ credit portfolio is skewed in favour of corporate credit, he said.
Among retail credit, the bank will focus on giving education and home loans.