MUMBAI: State-owned Central Bank of India has posted a solid 32% jump in profit at Rs 1,263 crore in the December quarter, aided by improvement in bad loans and in spite of the a fall in the core net interest income.
The Mumbai-based bank said on Friday its total income rose to Rs 10,969 crore during the quarter under review up 12.63% from Rs 9,739 crore a year ago.
Gross NPAs declined to 2.70% from 3.86%, and net NPAs fell to 0.45% from 0.59% a year ago, helping it improve the provision coverage ratio to 96.69% from 96.54%, an improvement of 15 bps.
As a result, provisions for non-performing assets eased to Rs 276 crore from Rs 310 crore in the third quarter of the previous financial year.
However, the bank’s capital adequacy ratio slightly moderated to 16.13% from 16.43% at the end of the same quarter a year ago and the tier I at 13.87%.
Reflecting falling interest rates and thus margins, the core net interest income declined marginally to Rs 3,502 crore from Rs 3,540 crore in the corresponding period of the previous year.
Total business stood at Rs 7,74,106 crore, registering the growth of 15.77% over Rs 6,68,686 crore as of December 2024.
Total deposits grew to Rs 4,50,575 crore from Rs 3,97,907 crore, registering a growth of 13.24% and gross advances jumped 19.48% to Rs 3,23,531 crore from Rs 2,70,799 crore.
During the three quarters, the bank reported a net profit of Rs 3,644 crore compared to Rs 2,752 crore in the nine-month period of the previous year from total income of Rs 31,593 crore, up from Rs 29,088 crore in the nine-month period of the last financial year.
Despite good set of numbers, investors looked away from the bank and the shares ended just 0.73% up at Rs 38.57 on the BSE.