Central Bank of India posted standalone net profit of Rs 155 crore during the quarter ended December 31, 2019. The state-run lender had posted a net loss of Rs 718 crore in the year-ago period.
Total income for the December quarter this fiscal increased 15 per cent to Rs 7,278 crore, in comparison to Rs 6,329 crore. Net Interest Income (NII), the difference between interest earned and interest expended, increased to Rs 2,022 crore during Q3 FY20, 11.34 per cent higher than Rs 1,816 crore recorded in Q3 FY19.
Operating profit of Central Bank of India increased to Rs 1,696 crore in the December quarter this fiscal, 137.20 per cent higher than Rs 715 crore posted by the bank in the corresponding quarter last year. Net Interest Margin grew to 2.92 per cent during the quarter under review, from 2.74 per cent in the year-ago period.
Provisions of the bank increased 7.54 per cent to Rs 1,541 crore during the December quarter of FY 2019-20, as opposed to Rs 1,433 crore recorded during the same quarter previous fiscal.
Asset quality improved as net non-performing assets (NPAs) stood at Rs 13,568.05 crore at the end of Q3 FY20, down 13 per cent from Rs 15,605.07 crore seen at the end of Q3 FY19.
Disclosing the bank's position on the NPA divergence for 2018-19, as assessed by the Reserve Bank, Central Bank said there was a gap of Rs 2,565 crore in gross bad loans. The bank had reported gross NPAs of Rs 32,356.04 crore for 2018-19, while the RBI assessed it at Rs 34,921.04 crore.
Net NPAs were reported at Rs 11,333.24 crore, whereas the RBI assessed them at Rs 13,898.24 crore, leading to a divergence of Rs 2,565 crore. The divergence in provisioning for 2018-19 stood at Rs 788 crore and hence the adjusted net loss for the year came in at Rs 6,429.48 crore.
The bank's stock closed 3.73 per cent down at Rs 19.35 on the BSE.