Mumbai: Central Bank of India on Tuesday reported a net loss of ₹ 836.62 crore for the quarter ended 31 December due to provisions for mounting bad loan. Net profit a year ago was ₹ 138 crore.
The bank’s provisions for the quarter stood at ₹ 1,499 crore as compared with ₹ 699 crore a year ago. Provisions for the July-September quarter amounted to ₹ 645.44 crore.
Provisions rose on account of an intense asset quality review conducted by the Reserve Bank of India (RBI) in the October-December quarter, where the regulator asked banks to consider providing for many stressed assets which were classified as standard.
Gross non-performing assets (NPAs) for the third quarter stood at ₹ 17,564 crore, up 31.5% as compared with ₹ 13,358 crore reported in the second quarter. Gross NPA ratio as a share of gross advances stood at 8.95% as on 31 December, higher than 6.86% at the end of September.
Subsequent to the increased provisioning, net NPA ratio for the December quarter stood at 5.3% of total assets. It was 3.83% in the September quarter.
Net interest income, or the difference between interest paid on deposits and that earned from loans, stood at ₹ 1,745 crore for the third quarter, up 4% from ₹ 1,676 crore a year ago.
Non-interest income was at ₹ 491 crore, lower than ₹ 509 crore reported a year ago.
On Tuesday, Central Bank of India shares closed at ₹ 61.85 on BSE, up 0.8% from its previous close while the benchmark index Sensex closed at 24,020.98 points, down 1.1%.
