Money & Banking

Central Bank of India reports lower loss of Rs 577 cr in Q1

Our Bureau Mumbai | Updated on January 11, 2018 Published on July 29, 2017

Lower burden of loan loss provisioning and income tax refund saw Central Bank of India report lower net loss of Rs 577 crore in the first quarter ended June 30, 2017 as against Rs 600 crore in the year ago quarter.

While net interest income in the reporting quarter was down 20 per cent year-on-year (y-o-y) at Rs 1,331 crore, non-interest income rose 34 per cent y-o-y at Rs 660 crore.

Loan loss provision were lower at Rs 1,269 crore (Rs 1,544 crore in the year ago quarter).

The bank had deferred tax asset (income tax refund) of Rs 242 crore (Rs 358 crore income tax refund in the year ago quarter).

The public sector bank said as per RBI directions for initiating insolvency process, it is required to make additional provision estimated at Rs 961 crore in respect of select accounts covered under provisions of Insolvency and Bankruptcy Code (IBC) to be proportionately spread over three quarters starting from the September 2017 quarter.

Gross non-performing assets (GNPAs) increased by Rs 4,147 crore during the quarter to Rs 31,398 crore as at June-end 2017.

GNPAs as a percentage of gross loans nudged up from 17.81 per cent in the March 2017 quarter to 18.23 per cent in the June 2017 quarter.

Total Deposits reached to Rs. 2,94,162 crore in June 30, 2017 from Rs. 2,70,293 crore as at June 30, 2016 showing y-o-y growth of 9 per cent. The proportion of low-cost current account, savings accounts deposits improved to 39.48 per cent of total deposits in June 2017 as against 35.40 per cent in June 2016.

Gross advances declined 7 per cent y-o-y to Rs. 1,72,198 crore in June 2017 as against Rs. 1,85,719 crore in June 2016. The reduction is primarily attributed to reduction in the outstanding Inter Bank Participation Certificates (IBPC) of Rs. 10,109 crore in the reporting quarter, reducing the advances to that extent.

Published on July 29, 2017
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