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Central Bank of India (CBoI)reported a 27 per cent year-on-year (y-o-y) increase in second quarter net profit at ₹318 crore, against ₹250 crore in the year-ago period.
The bottomline was buoyed by growth in net interest income and provision write back due to cash recoveries/upgradation/ restructuring.
Net interest income was up 24.52 per cent y-o-y at ₹2,747 crore (₹2,206 crore in the year-ago period). Non-interest income, however, was down about 12 per cent y-o-y to ₹910 crore (₹1,034 crore), mainly due to the decline in treasury income and other receipts (priority sector lending certificates and others).
Net interest margin showed significant improvement to 3.44 per cent from 2.97 per cent in the year-ago quarter.
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Loan-loss provisions declined 3.95 per cent at ₹1,070 crore (₹1,114 crore). The bank made standard assets provision of ₹162 crore (against write-back of ₹394 crore in the year-ago period). The bank booked a write-back on investment of ₹95 crore, against provision of ₹290 crore).
Gross non-performing assets (NPAs) declined to 9.67 per cent of gross advances as of September-end 2022, against 14.90 per cent in the preceding quarter. The bank made a technical write-off of ₹9,514 crore (nil in the year-ago period).
Net NPAs declined to 2.95 per cent of net advances, against 3.93 per cent. Gross advances grew 12.20 per cent y-o-y to ₹1,97,022 crore, with Retail, Agriculture and MSME (RAM) and corporate advances growing 13.37 per cent and 9.86 per cent, respectively.
Domestic deposits nudged up 1.96 per cent y-o-y to ₹3,43,081 crore. The share of low-cost current account, savings account deposits improved to 50.99 per cent from 49.79 per cent a year ago.
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