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Central Bank of India reported a turnaround performance in the first quarter of FY2020, clocking a net profit of ₹118 crore, against a net loss of ₹1,522 crore in the year-ago period.
After posting 14 successive quarterly losses, the public sector bank is now back in black.
The bottomline was boosted mainly by a 266 per cent year-on-year (y-o-y) jump in non-interest income at ₹779 crore, a 65 per cent y-o-y decline in loan loss provisions at ₹897 crore, and a tax write-back of ₹48 crore.
Net interest income was up 7 per cent y-o-y at ₹1,790 crore.
The bank continued to be weighed down by non-performing assets (NPAs), which, in gross terms, increased by ₹552 crore during the reporting quarter to ₹32,908 crore as on June-end 2019.
Gross NPAs rose to 19.93 per cent of gross advances as of June-end 2019, against 19.29 per cent as of March-end 2019.
Net NPAs edged up to 7.98 per cent of net advances as of June-end 2019, against 7.73 per cent as of March-end 2018.
The provision coverage ratio improved to 76.85 per cent as of June-end 2019, against 66.42 per cent as of June-end 2018.
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