Cen­tral Bank of In­dia’s net loss widens to ₹750 cr

The Hindu Business Line - - BANKING -

Lower earn­ings from ad­vances, cou­pled with pro­vi­sion­ing to­wards bad loans as well as ac­counts that were pro­ceeded against un­der the In­sol­vency and Bank­ruptcy Code (IBC), saw Cen­tral Bank of In­dia’s net loss widen to ₹750 crore in the sec­ond quar­ter against ₹642 crore in the year-ago quar­ter.

In­ter­est earned was less than in- ter­est ex­pended by ₹733 crore in the re­port­ing quar­ter. In the year-ago quar­ter too in­ter­est earned was less than in­ter­est ex­pended by ₹197 crore.

Other in­come was lower at ₹730 crore (₹777 crore in the year-ago quar­ter).

Pro­vi­sions (other than tax) and con­tin­gen­cies, in­clud­ing to­wards bad loans and nine ac­counts cov­ered un­der IBC pro­vi­sions, was higher at ₹1,962 crore (₹1,661 crore). The bank made a ₹459-crore pro­vi­sion dur­ing the quar­ter in re­spect of the nine IBC ac­counts.

To­tal de­posits rose 7 per cent year-on-year (y-o-y) to ₹2,97,426 crore. Of this, the pro­por­tion of low-cost cur­rent ac­count, sav­ings ac­count (CASA) de­posits in­creased to 40.24 per cent against 36.61 per cent in the year-ago quar­ter.

Gross ad­vances shrunk by ₹4,554 crore y-o-y to ₹1,83,190 crore as at Septem­ber-end 2017.

The bank, in a state­ment, said slip­pages were sub­stan­tially con­tained at ₹913 crore against ₹3,305 crore in the year-ago quar­ter and ₹5,059 crore in the pre­ced­ing quar­ter.

Gross non-per­form­ing as­sets as a percentage of gross ad­vances in­creased to 17.27 per cent as at Septem­ber-end 2017 from 13.70 per cent as at Septem­ber-end 2016.

The share of the pub­lic sec­tor bank ended a tad higher at ₹83.05 against the pre­vi­ous close of ₹82.40 on the BSE.

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