Money & Banking

Central Bank of India’s net loss widens to ₹750 cr

Our Bureau Mumbai | Updated on January 09, 2018

Interest earned was less than interest expended by ₹733 crore in the reporting quarter

Lower earnings from advances, coupled with provisioning towards bad loans as well as accounts that were proceeded against under the Insolvency and Bankruptcy Code (IBC), saw Central Bank of India’s net loss widen to ₹750 crore in the second quarter against ₹642 crore in the year-ago quarter.

Interest earned was less than interest expended by ₹733 crore in the reporting quarter. In the year-ago quarter too interest earned was less than interest expended by ₹197 crore.

Other income was lower at ₹730 crore (₹777 crore in the year-ago quarter).

Provisions (other than tax) and contingencies, including towards bad loans and nine accounts covered under IBC provisions, was higher at ₹1,962 crore (₹1,661 crore). The bank made a ₹459-crore provision during the quarter in respect of the nine IBC accounts.

Total deposits rose 7 per cent year-on-year (y-o-y) to ₹2,97,426 crore. Of this, the proportion of low-cost current account, savings account (CASA) deposits increased to 40.24 per cent against 36.61 per cent in the year-ago quarter.

Gross advances shrunk by ₹4,554 crore y-o-y to ₹1,83,190 crore as at September-end 2017.

The bank, in a statement, said slippages were substantially contained at ₹913 crore against ₹3,305 crore in the year-ago quarter and ₹5,059 crore in the preceding quarter.

Gross non-performing assets as a percentage of gross advances increased to 17.27 per cent as at September-end 2017 from 13.70 per cent as at September-end 2016.

The share of the public sector bank ended a tad higher at ₹83.05 against the previous close of ₹82.40 on the BSE.

Published on October 30, 2017

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