Central Bank of India registered a 20 per cent year-on-year (y-o-y) increase in standalone net profit at ₹161 crore in the second quarter (Q2) ended September 30, 2020, against ₹134 crore in the year-ago quarter.
The increase in net profit came on the back of a 24 per cent in net interest income (difference between interest earned and interest expended) to ₹2,354 crore (₹1,891 crore in the year-ago period).
This jump in profit comes despite loan-loss provisions rising 46 per cent to ₹856 crore in Q2 FY21 against ₹588 crore in the year-ago period.
Non-interest income, comprising commission, exchange and brokerage; trading profit on investments; recovery in written-off accounts, among others, declined about 4 per cent to ₹781 crore (₹814 crore).
The Mumbai-headquartered public sector bank’s operating profit rose 42 per cent y-o-y to ₹1,458 crore (₹1,026 crore).
Gross non-performing assets (NPAs) declined by ₹1,161 crore during the reporting quarter to ₹30,785 crore as of September-end 2020.
GNPAs declined to 17.36 per cent of gross advances against 18.10 per cent in the preceding quarter.
Net NPAs declined to 5.60 per cent of net advances against 6.76 per cent in the preceding quarter.
As of September-end 2020, total deposits were up 6 per cent y-o-y to ₹3,23,444 crore. Within this, current account, savings account (CASA) deposits composition improved to 47.72 per cent of the total deposits from 45.82 per cent.
Gross advances increased 5 per cent y-o-y to ₹1,77,293 crore, mainly on the back of growth in retail advances (14 per cent y-o-y growth) and MSME advances (7 per cent)