Central Bank of India (CBoI) reported a 69 per cent year-on-year (yoy) jump in third-quarter standalone net profit at ₹279 crore against ₹165 crore in the year-ago period on the back of healthy growth in net interest income, lower loan loss provision and reduced tax expense.
The Mumbai-headquartered public sector bank’s net interest income (difference between interest earned and interest expended) was up 23 per cent yoy to ₹2,746 crore (₹2,229 crore in the year ago quarter).
Loan loss provisions declined 33 per cent YoY to ₹380 crore (₹565 crore). However, provisions for standard assets and depreciation on investments increased to ₹225 crore (₹200 crore) and ₹193 crore (write back of ₹67 crore), respectively.
Outgo on account of tax was sharply down at ₹65 crore (₹284 crore).
Other income, comprising fee-based income, treasury income, and miscellaneous income, fell 21 per cent YoY at ₹610 crore (₹774 crore).
The Gross Non-Performing Asset (NPA) position improved to 15.16 per cent of gross advances in the reporting quarter against 15.52 per cent in the preceding quarter. The Net NPA (NNPA) position also improved to 4.39 per cent of net advances against 4.51 per cent.
Total advances edged up 0.69 per cent yoy to ₹1,82,098 crore as at December-end 2021.
Referring to the Technical Write off (TWO) of Rs. 4,810 crore it had made in March 2021, the Bank said had this TWO not been done, the credit growth would have been 3.35 per cent.
Total Deposits (including Interbank Deposits) increased by about 4 per cent per cent yoy to Rs 3,37,688 crore as at December-end 2021. The proportion of low cost current account, savings account deposits increased to 50.01 per cent from 48.11 per cent a year ago.