Central Bank of India, on Monday, reported a 78 per cent rise in net profit at ₹418 crore for the June quarter due to a decline in bad loans and increase in interest income.

The Mumbai-based lender had posted a net profit of ₹235 crore in the year-earlier period.

Total income during the quarter under review increased to ₹8,184 crore from ₹6,357 crore in FY23, the bank said in a regulatory filing.

Interest earned by the bank grew to ₹7,225 crore over ₹5,527 crore in the June quarter a year ago.

Net Interest Income of the bank increased by 48 per cent to ₹3,176 crore in Q1 FY24, it said.

Also read: RBI imposes ₹84.50 lakh penalty on Central Bank of India

The bank's asset quality showed improvement as gross Non-Performing Assets (NPAs) declined to 4.95 per cent of gross advances by the end of June 2023, from 14.90 per cent as of June 2022.

Similarly, net NPAs or bad loans eased to 1.75 per cent as against 3.93 per cent a year earlier.

Net Interest Margin (NIM) of the bank improved to 3.62 per cent, registering a growth of 74 basis points.

Capital Adequacy Ratio of the bank improved to 14.42 per cent from 13.33 per cent in the same quarter of FY23.

Return on Assets (ROA) improved to 0.43 per cent in Q1FY24 as against 0.27 per cent in the same quarter a year earlier.

Return on Equity (ROE) also improved to 1.63 per cent for the first quarter as against 0.98 per cent for Q1FY23.