Public sector lender Central Bank of India on Tuesday reported a 14.4% year-on-year rise in net profit to Rs 135.43 crore in the June quarter of FY21. The profit came on the back of an improvement in net interest income (NII) and a drop in provisions.
The bank reported a total income of Rs 6,727 crore, up 3.6% y-o-y. NII – the difference between interest earned and interest expended – stood at Rs 2,146 crore, up 20% y-o-y. Provisions fell 6% y-o-y to Rs 975 crore. Central Bank’s operating profit rose 17% y-o-y to Rs 1,291 crore. The net interest margin (NIM), a key measure of profitability, rose 23 basis points (bps) sequentially to 3.08%.
The lender did not disclose details of its moratorium book. It showed an improvement in terms of asset quality. Gross non-performing assets (NPAs) as a percentage of total advances fell 82 bps on a sequential basis to 18.1% and the net NPA ratio declined 87 bps to 6.76%. In absolute terms, GNPAs stood at Rs 31,946 crore, while net NPAs stood at Rs 10,469 crore at the end of Q1FY21.
Slippages during the quarter were to the tune of Rs 20 crore, down from Rs 2,141 crore a year ago as the moratorium ensured a standstill on some accounts.
Gross advances of the bank stood at Rs 1.76 lakh crore as on June 30, 2020 with growth of 7% y-o-y. Total deposits of the bank stood at Rs 3.21 lakh crore as on June 30, 2020, up 8% y-o-y.
The current account savings account (CASA) share improved to 47.3% from 45.77% a year ago. Central Bank’s shares closed at Rs 18.15 on BSE on Tuesday, up 1.97% from their previous close.