Our Bureau Central Bank of India’s net loss widened to ₹1,664 crore in the third quarter against ₹606 crore in the year-ago quarter due to higher provisions for accounts referred to the National Company Law Tribunal and mark-to-market losses due to depreciation in investments.
The public sector bank’s net interest income increased 31 per cent year-on-year (y-o-y) to ₹1,978 crore, against ₹1,506 crore in the year-ago period.
Other income was down 22 per cent to ₹563 crore (₹724 crore in the year-ago period).
Net interest margin improved to 3.06 per cent in the reporting quarter from 2.27 per cent in the year-ago quarter.
Additional provisions
Provision for non-performing assets, including for accounts referred to the NCLT, shot up to ₹3,082 crore (₹1,571 crore).
In respect of the RBI’s first list of NCLT accounts, out of the total additional provisions of ₹961 crore the bank is required to make by March-end 2018, it has already made provisions amounting to ₹696 crore up to December-end 2017. It will provide the balance by March-end 2018.
In respect of the RBI’s second list of NCLT accounts, out of the total additional provisions of ₹1,257 crore the bank is required to make by March-end 2018, it has made provisions amounting to ₹325 crore up to December-end 2017. The bank said it will provide the balance by March-end 2018.
During the reporting quarter, net slippages amounted to ₹850 crore. As at December-end 2017, gross non-performing assets (GNPAs) stood at ₹32,491 crore against ₹31,614 crore as at December-end 2016.
GNPAs increased to 18.08 per cent of gross advances as at December-end 2017 17.27 per cent as at September-end 2017.
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