Mumbai: Losses of government owned Central Bank of India has widened to Rs 750 crore from Rs 641 crore a year ago as provisions for bad loans and poor demand for loans affected their earnings. This is the fifth consecutive quarter wherein the bank has posted net loss.

The Reserve Bank of India (RBI) has triggered prompt corrective action on Central Bank of India after it posted losses for two consecutive year and its share of bad loans rose sharply. Under PCA, the bank has to control expense and focus on recovery of bad loans. Bad loans before provisions was at 17% of total loans and post provision it was at 9.5%. The net interest income of the bank remained almost flat at Rs 1706 crore for September quarter 2017 against Rs 1693 crore in comparable quarter.

Cash recovery stood at Rs 975 crore and slippage were contained at Rs 913 crore against Rs 3305 crore a year ago in the same period