Central Bank of India posts Rs642 crore loss in Q2 as bad loans rise
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Mumbai: Central Bank of India on Friday reported a net loss of Rs641.82 crore for the quarter ended 30 September because of higher provisions against bad loans and a drop in net interest income.
The state-owned lender had reported a net profit worth Rs112.87 crore in the same quarter a year ago.
The loss would have been bigger but for a Rs164.5 crore writeback on tax provisions. In the same quarter last year, Central Bank of India had provided Rs89.29 crore for tax.
Provisions against bad loans rose sharply to Rs1,161.21 crore from Rs645.44 crore last year. Gross non-performing assets (NPAs) rose 2.4% from the preceding quarter to Rs25,718 crore.
Gross NPAs made up 13.7% of the loan book, up from 13.52% in the June quarter. Net NPAs were stable sequentially at 8.17% of the loan book.
Net Income Income (NII), or the difference between interest earned on loans and those paid on deposits, came in at Rs1,693.4 crore, down 11.5% from a year ago. Non-interest income rose to Rs776.64 crore from Rs473.25 crore a year ago.
Central Bank of India stock closed at Rs88.50 on the BSE, down 2.96% from its previous close, on a day the benchmark Sensex fell 0.57% to 27,274.15 points.