- Central Bank of India’s Q2 net profit rose 21.1% to Rs 1,469 crore year-on-year
- Net interest income increased 26% to Rs 4,145 crore in the quarter ended Sept 30
- Gross NPA ratio improved to 2.39% from 2.60% sequentially in Q2
Central Bank of India Ltd.'s standalone net profit rose 21.1% year-on-year to Rs 1,469 crore in the quarter ended Sept. 30, supported by a 26% increase in net interest income and stronger operating profit.
The state-run lender had reported net profit of Rs 1,213 crore in the year-ago quarter. Net interest income, or the difference between interest earned on loans and other assets and interest paid on deposits and borrowings, increased to Rs 4,145 crore from Rs 3,283 crore.
Operating profit climbed 27% to Rs 2,268 crore from Rs 1,786 crore a year earlier. Total segment revenue rose nearly 15% to Rs 11,737 crore from Rs 10,212 crore.
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Asset quality improved sequentially. The gross non-performing asset ratio declined to 2.39% at the end of September from 2.60% at the end of June. The net NPA ratio eased to 0.31% from 0.49% over the same period.
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However, provisions increased rather than declined during the quarter. The bank set aside Rs 563 crore, up 79% from Rs 314 crore in the year-ago period and 40% from Rs 402 crore in the preceding quarter.
Profit before tax from treasury operations rose to Rs 793 crore from Rs 454 crore a year earlier, while wholesale banking profit before tax almost doubled to Rs 601 crore from Rs 315 crore.
Retail banking segment profit before tax, however, fell to Rs 381 crore from Rs 773 crore in the year-ago quarter.
The segment trends were also mixed sequentially. Treasury operations profit before tax increased from Rs 621 crore in the June quarter, while wholesale banking operations moved to a profit from a loss of Rs 139 crore.
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Retail banking segment profit before tax declined from Rs 1,377 crore in the preceding quarter.
Segment revenue increased from Rs 10,678 crore in the June quarter, while total segment profit before tax was Rs 1,706 crore, compared with Rs 1,784 crore sequentially and Rs 1,471 crore a year earlier.
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