Money & Banking

Healthy recoveries boost Q4 profit for Central Bank of India

Our Bureau Mumbai | Updated on January 24, 2018 Published on May 12, 2015

Bank plans to raise ₹2,800 crore through FPO or QIP

Government-owned Central Bank of India on Tuesday reported a 7 per cent rise in its net profit to ₹174 crore in the January to March period against ₹162 crore in the year-ago period. The profit was backed by healthy recoveries and lower slippages.

Net interest income (NII) increased 12 per cent to ₹1,922 crore from ₹1,715 crore last year.

Provisions for the quarter rose 14 per cent to ₹617 crore from ₹542 crore a year ago.


However, gross non-performing assets (NPA) as a percentage of gross advances dipped during the three-month period to 6.09 per cent, as compared to 6.27 per cent a year ago. Net NPA also declined to 3.61 per cent from 3.75 per cent.

Fresh slippages during the quarter reduced to ₹1,471 crore from ₹2,034 in the March quarter last year. Recoveries doubled to ₹635 crore in Q4 FY15 from ₹245 crore in Q4 FY14. For the full year, the bank clocked a net profit of ₹606 crore as against a loss of ₹1,263 crore in the previous fiscal.

As on March end, total advances and deposits grew by 6 per cent each year-on-year.

Central Bank expects advances growth in FY16 to be at 9.2 per cent, and deposit growth at 14.8 per cent. It also aims to contain gross NPA at 5.25 per cent.

Fund raising

The lender plans to raise ₹2,800 crore through a Follow-on Public Offer (FPO) or Qualified Institutional Placement (QIP) in this fiscal. The bank’s Board has recommended a dividend of ₹0.50 per equity share of face value ₹10 each, that is, 5 per cent for FY15.

At the day’s close, Central Bank of India shares ended at ₹109.40, down 2.06 per cent on the BSE.

Published on May 12, 2015

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.