Money & Banking

Central Bank of India posts ₹135-crore profit in Q1

Our Bureau Mumbai | Updated on August 11, 2020

Central Bank of India is back in the black, reporting a standalone net profit of ₹135 crore in the first quarter ended June 30, 2020, against a net loss of ₹1,529 crore in the preceding quarter.

The public sector bank had reported a net profit of ₹118 crore in the year-ago quarter.

The bottomline line in the reporting quarter was supported by a healthy growth in net interest income and lower loan-loss provisioning burden.

Net interest income (difference between interest earned and interest expended) was up 20 per cent at ₹2,145 crore (₹1,790 crore in the year-ago period).

Other income, comprising commission, exchange, brokerage, forex income, profit from sale of investments, and recovery from technically written-off accounts, was down 9 per cent at ₹710 crore (₹779 crore).

Loan-loss provisions were lower at ₹650 crore (₹897 crore).

Gross Non-Performing Assets (NPAs) edged lower to 18.10 per cent of gross advances in the reporting quarter against 18.92 per cent in the preceding quarter.

Net NPAs decline to 6.76 per cent of net advances in the reporting quarter against 7.63 per cent in the preceding quarter.

The bank made a provision of ₹161.75 crore during the quarter in the special mention accounts (SMAs), where moratorium due to the pandemic was extended. It holds a total provision of ₹305 crore in such accounts as on June 30, 2020.

Deposits and advances increased by 8 per cent each year-on-year to ₹3,21,252 crore and ₹1,54,919 crore, respectively.

Published on August 11, 2020

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