New Delhi: State-owned Central Bank of India’s net loss widened by 74% to Rs1,522.54 crore in the quarter ending June due to a more than two-fold spike in provisions for bad loans.

The bank had registered a net loss of Rs576.76 crore in the April-June quarter of 2017-18, according to a regulatory filing by the bank. In the preceding quarter ending March 2018, the bank had reported a net loss of Rs2,113.51 crore.

Income of the bank fell to Rs5,904.82 crore in the first quarter of 2018-19 from Rs6,870.78 crore in the same period of 2017-18 as core income dropped.

The bank earned an interest income of Rs5,691.87 crore during the quarter through June, a fall of 8.4% from Rs6,210.91 crore in the year-ago quarter.

Gross non-performing assets (NPAs) jumped to 22.17% of gross advances by the end of June from 18.23% as on 30 June, 2017. In value terms, gross NPAs or bad loans stood at Rs38,777.66 crore as against Rs31,398.47 crore.

Net NPAs, however, fell to 10.58% (Rs16,086.25 crore) by the end of the June quarter, from 11.4% (Rs17,407.43 crore) in the same period a year ago.

The provisioning for bad loans were raised by over two times to Rs2,538.14 crore at June-end this year from Rs1,028.93 crore set aside for the same period of 2017-18.

Overall provisions and contingencies too increased to Rs2,768.22 crore from Rs1,269.02 crore.

The return on assets further worsened to a negative 1.85% from a negative 0.71% a year ago. However, it improved from a negative 2.75% in March quarter.

Central Bank of India said for the accounts covered under the provisions of Insolvency and Bankruptcy Code, it is holding an additional provision of Rs690.20 crore as on 30 June, 2018, in respect of 21 borrower accounts.

“During the quarter, the bank has appropriated the amount recovered in accordance with the resolution plans approved vide order National Company Law Tribunal (NCLT). The bank has appropriated an amount of Rs76.29 crore recovered in one of the cases, where appeal is pending before the National Company Law Appellate Tribunal (NCLAT)," it said.

The provisioning coverage ratio stood at 66.42% as on 30 June, 2018, against 54.48% a year ago.

Shares of the bank closed 1.26% higher at Rs72.20 on the BSE on Monday.

Close