Central Bank of India Q2 net profit rises 27% to Rs 318 crore

State-owned Central Bank of India on Thursday reported a 27% rise in net profit to Rs 318 crore for the September quarter over the same period last year. Its asset quality improved with gross non-performing assets (NPA) ratio falling below double digit.

The net profit was Rs 250 crore in the second quarter last year.

Its net interest margin (annualised) was 3.44% for the quarter under review, up from 2.97% seen in the year-ago period. Net interest income rose 25% to Rs 2,747 crore.

Operating profit stood at Rs 1,748 crore against Rs 1,445 crore, reflecting a 21% rise, in spite of a 12% fall in other income.

The bank’s gross advances rose 12.2% year on year to Rs 1.97 lakh crore.

The bank, which exited the prompt corrective action framework last month, saw its gross non-performing assets falling to 9.67% at the end of September against 15.5% a year ago. Net NPA was at 2.95% against 4.5%.

The bank’s provision coverage ratio improved to 89.2% from 85.86% in the past one year. Capital adequacy ratio stood at 13.6% at the end of September.