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Central Bank of India has announced that its net profit in Q1 FY24 jumped 78 per cent year-on-year to ₹418 crore against ₹235 crore in the year ago quarter on the back of robust growth in net interest income and sharp decline in loan loss provisions.
Net interest income (difference between interest earned and interest expended) of the Mumbai-headquartered public sector bank rose 48 per cent y-o-y to ₹3,176 crore (₹2,142 crore).
Other income, comprising income (including commission) from non-fund based banking activities, fees, earning from foreign exchange, profit/loss on sale of assets, profit/loss (including revaluation) from investments, recovery from accounts written off, etc, was up 15 per cent at ₹959 crore (₹831 crore).
Net interest margin (NIM) improved to 3.62 per cent from 2.88 per cent in the year ago quarter.
Also read: HDFC Bank Q1 net profit jumps 29% to ₹12,370 crore
Loan loss provisions declined 70 per cent y-o-y to ₹244 crore (₹824 crore). Credit cost declined to 0.45 per cent in the reporting quarter against 1.78 per cent in the year ago quarter.
The gross non-performing assets (NPA) to gross advances position improved to 4.95 per cent as at June-end 2023 on the back of technical write-off of ₹7,804 crore against 8.44 per cent as at March-end 2023.
The net NPA to net advances position improved a tad to 1.75 per cent as at June-end 2023 against 1.77 per cent as at March-end 2023.
Total deposits increased by 6.05 per cent y-o-y to stand at ₹3,63,398 crore as on June-end 2023. Low-cost CASA (current account, savings account) deposits declined to 49.76 per cent of total deposits against 51.15 per cent in the year ago quarter.
Total Advances rose by 12.95 per cent y-o-y to stand at ₹2,19,863 crore, with RAM (retail, agriculture and MSME) and corporate advances clocking a growth of 12.95 per cent and 13.15 per cent, respectively.
Capital adequacy ratio improved to 14.42 per cent from 13.33 per cent as at March-end 2023.
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