Mumbai: Central Bank of India returned to profit in the first quarter ended June 2019 aided by lower provisioning. The bank posted a net profit ₹118.33 crore for the three months ended 30 June, against a net loss of ₹1,522.24 crore in the year-ago period.
Provisions during the quarter decreased 62.62% to ₹1,034.78 crore, from ₹2,768.22 crore in the year-ago quarter. During the January-March quarter, the bank had set aside ₹4,733.82 crore in provisions.
Net interest income, or the difference between interest earned on loans and that paid on deposits, increased 6.67% to ₹1,790.19 crore during the first quarter, against ₹1678.18 crore in the corresponding period last year.
Other income, including core fee income, rose more than three times to ₹7,79.11 crore in the first three months of the current financial year, from ₹212.95 crore a year ago.
Gross non-performing assets (NPAs), as a percentage of total advances, were at 19.93% in the June quarter, compared with 19.29% in the March quarter, and 22.17% a year ago.
Post-provision, the net NPA ratio was at 7.98%, against 7.73% during the January-March quarter and 10.58% in the year-ago quarter.
On Tuesday, shares of the bank gained 2.05% to close at ₹17.40 on the BSE, while the Sensex gained 0.75% to close at 36,976.85.