Central Bank of India (CBoI) is back in the black, reporting a standalone net profit of ₹206 crore in the first quarter (Q1 FY22) on the back of healthy growth in net interest income (NII) and a substantial decline in loan loss provisions.
The public sector bank had reported a net loss of ₹1,349 crore in the fourth quarter of FY21. It posted a net profit of ₹135 crore in Q1 FY21. Net interest income/NII (difference between interest earned and interest expended) rose 41 per cent quarter-on-quarter (q-o-q) to ₹2,135 crore (₹1,516 crore in Q4 FY21).
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However, NII in the reporting quarter was a tad lower vis-a-vis year-ago period’s (Q1 FY21) ₹2,146 crore.
Non-interest income, NPA
Total non-interest income, comprising commission, exchange & brokerage, treasury income and recoveries in written-off accounts, was down 15 per cent q-o-q at ₹767 crore (₹902 crore). But it was up 8 per cent up on year ago period’s ₹710 crore. Non-performing asset (NPA) provisions declined 98 per cent q-o-q to ₹ 76 crore (₹3,259 crore in Q4 FY21). On yoy basis too, NPA provisions fell 85 per cent. Standard assets provisions increased to ₹240 crore against a write-back of ₹ 152 crore in Q4FY21 and a provision of ₹182 crore in Q1 FY21.
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Provisions towards restructured accounts jumped to ₹328 crore against ₹32 crore in Q4FY21 and ₹20 crore in Q1FY21. Write-back in provisions on investments was higher at ₹105 crore against ₹37 crore in Q4 FY21. In the year ago period, the Bank made a provision of ₹282 crore. Net interest margin (annualised) improved to 2.84 per cent from 2.04 per cent in Q4FY21.
Total deposits increased by 3.18 per cent y-o-y to ₹3,31,483 crore (₹3,21,252 crore in Q1FY21), with the proportion of current account, savings account (CASA) in total deposits improving to 49.20 per cent (47.30 per cent). Total advances declined 0.72 per cent yoy to ₹1,75,229 crore (₹1,76,496 crore), with retail, agriculture and MSME (RAM) advances growing 4.69 per cent and corporate advances declining 9.55 per cent.