Money & Banking

Central Bank of India Q4 net loss narrows to ₹1,529 crore

Mumbai | Updated on June 29, 2020 Published on June 29, 2020

According to Brickwork Ratings, Central Bank of India plans to raise additional capital, which will assist in enhancing credit growth

Central Bank of India’s net loss narrowed to ₹1,529 crore in the fourth quarter ended March 31, 2020, against ₹2,477 crore in the year-ago quarter.

The public sector bank, which is currently under prompt corrective action, had reported a net profit of ₹155 crore in the quarter ended December 31, 2019.

Net interest income (difference between interest earned and interest expended) was up 20 per cent year-on-year at ₹1,926 crore (₹1,603 crore in the year-ago quarter).

Other income, comprising commission/ exchange, profit on sale of investments, recovery in written-off accounts and profit on exchange transactions, was down 30.51 per cent y-o-y at ₹795 crore (₹1,144 crore in the year-ago quarter).

Operating profit was down 66 per cent at ₹517 crore (₹1,519 crore in the year-ago quarter).

Provisions

Loan-loss provision burden came down 64 per cent y-o-y to ₹1,628 crore (₹4,583 crore). However, provision on investments rose 65 per cent y-o-y to ₹445 crore (₹270 crore). Provision on standard assets, too, rose to ₹167 crore against a write-back of ₹89 crore in the year-ago period.

The bank, as a prudent measure, has made an additional provision of ₹307 crore in respect of one borrower classified as substandard asset (NPA) in the quarter ended March 31due to uncertainty of recovery.

As per the notes to accounts, Central Bank extended moratorium on advance accounts of ₹33,577 crore, which were special mention account (SMA)/overdue category as on March 1.

Further, it has extended the benefit of asset classification in advances accounts having outstanding of ₹2,865 crore and has made provision of ₹143 crore on these advances amount to during current quarter.

Gross non-performing assets (NPAs) declined to 18.92 per cent of gross advances as of March-end 2020 against 19.99 per cent as of December-end 2019.

Net NPAs position improved to 7.63 per cent of gross advances as of March-end 2020 against 9.26 per cent as of December-end 2019.

Published on June 29, 2020
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