Central Bank’s Q4 net up 41% on decline in provisions for NPAs, standard assets
Central Bank of India (CBoI) reported a 41 per cent increase in fourth quarter standalone net profit at ₹807 crore against ₹571 crore in the year-ago quarter. The bottom-line was supported by decline in provisions towards nonperforming assets (NPAs) and standard assets.
Net interest income (difference between interest earned and interest expended) in the reporting quarter edged up 0.80 per cent y-o-y at ₹3,541 crore (₹3,513 crore).
Other income, including fee-based income, treasury income and recovery in written-o¢ accounts, declined about 4 per cent yo-y to ₹1,362 crore (₹1,424 crore).
Net interest margin (yearly) declined to 3.58 per cent (4.01 per cent).
NPAS DOWN
Provisions for NPAs decreased
Total deposits rose 7.16 per cent to ₹3,85,011 crore
about 35 per cent to ₹509 crore (₹789 crore). Provisions for standard assets too declined about 50 per cent to ₹188 crore (₹378 crore).
GNPA position was unchanged at 4.50 per cent of gross advances as at Marchend 2024 vis-a-vis December-end 2023. Net NPAs position improved to 1.23 per cent of net advances against 1.27 per cent.
Gross advances increased 15.60 per cent y-o-y to ₹2,51,745 crore as at
March-end 2024 on the back of 15.47 per cent growth in RAM (retail, agriculture and MSME) advances and 15.85 per cent growth in corporate advances.
Total deposits rose 7.16 per cent yoy to stand at ₹3,85,011 crore as at March-end 2024. Low-cost CASA (current account, savings account) deposits constituted 50.02 per cent of total deposits (50.39 per cent).
RAISING CAPITAL
Meanwhile, the public sector bank’s board of directors approved the bank’s proposal to raise capital aggregating upto ₹5,000 crore during FY25.
The capital raise will be through Follow-on Public o¢er (FPO)/Rights issue/ Qualified Institutional Placement (QIP) / Preferential issue or any other mode or combination thereof and /or through issue of BASEL III compliant AT1/Tier II Bonds or such other Securities.