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Tight leash on operating expenses and reversal in income tax provision helped Central Bank of India report a 59 per cent jump in net profit at Rs 180 crore in the October-December quarter.
The public sector bank had reported a net profit of Rs 113 crore in the year-ago period.
Profitability in the reporting quarter comes despite the bank setting aside Rs 633 crore towards provision for bad loans, including for restructured loan accounts, against Rs 428 crore in the year-ago period.
Net interest income (the difference between interest earned and expended) increased 20 per cent to Rs 1410 crore (Rs 1179 crore in Q4FY2012). Non-interest income was, however, flat at Rs 357 crore.
Operating expenses nudged up 7 per cent at Rs 988 crore (Rs 922 crore) and reversal in income tax provision was Rs 29 crore (against a tax expense of Rs 127 crore in the year-ago period).
During the quarter, the bank saw incremental addition of Rs 431 crore in gross non-performing assets (NPAs) to Rs 8,938 crore. Net NPAs too edged up by Rs 168 crore to Rs 5,864 crore.
Sequentially, total deposits increased 4.25 per cent (or Rs 8,663 crore) to Rs 2,12,201 crore and advances nudged up 3.18 per cent (or Rs 4,893 crore) to Rs 1,58,494 crore.
M.V. Tanksale, Chairman and Managing Director, Central Bank of India, said there is good appetite for credit from the mid-corporate segment. The bank hopes to end the year with a 16-17 per cent credit growth and 13-14 per cent deposit growth.
Net interest margin was a tad higher at 2.60 per cent as of December-end 2012 (2.53 per cent as at December-end 2011).
The public sector bank had reported a net profit of Rs 113 crore in the year-ago period.
Profitability in the reporting quarter comes despite the bank setting aside Rs 633 crore towards provision for bad loans, including for restructured loan accounts, against Rs 428 crore in the year-ago period.
Net interest income (the difference between interest earned and expended) increased 20 per cent to Rs 1410 crore (Rs 1179 crore in Q4FY2012). Non-interest income was, however, flat at Rs 357 crore.
Operating expenses nudged up 7 per cent at Rs 988 crore (Rs 922 crore) and reversal in income tax provision was Rs 29 crore (against a tax expense of Rs 127 crore in the year-ago period).
During the quarter, the bank saw incremental addition of Rs 431 crore in gross non-performing assets (NPAs) to Rs 8,938 crore. Net NPAs too edged up by Rs 168 crore to Rs 5,864 crore.
Sequentially, total deposits increased 4.25 per cent (or Rs 8,663 crore) to Rs 2,12,201 crore and advances nudged up 3.18 per cent (or Rs 4,893 crore) to Rs 1,58,494 crore.
M.V. Tanksale, Chairman and Managing Director, Central Bank of India, said there is good appetite for credit from the mid-corporate segment. The bank hopes to end the year with a 16-17 per cent credit growth and 13-14 per cent deposit growth.
Net interest margin was a tad higher at 2.60 per cent as of December-end 2012 (2.53 per cent as at December-end 2011).
Preferential allotment
Meanwhile, the bank plans to raise up to Rs 2,406 crore through preferential allotment of equity shares to the Government of India. Tanksale sale the equity infusion will push up the capital adequacy ratio from 10.75 per cent as of December-end 2012 to 12 per cent. Further, the government’s stake in the bank will go up from 79.15 per cent to 84 per cent.
According to R.K. Goyal, Executive Director, the bank will soon be opening its first overseas representative office in Kenya.
Share of the bank closed 2.35 per cent down at Rs 83.05 per share on the BSE.
According to R.K. Goyal, Executive Director, the bank will soon be opening its first overseas representative office in Kenya.
Share of the bank closed 2.35 per cent down at Rs 83.05 per share on the BSE.
Source: thehindubusinessline
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