“Central Bank of India Reports 41% Surge in Net Profit for March Quarter”

The Central Bank of India, which is owned by the state, reported a 41% increase in its net profit to Rs 807 crore for the March quarter. The rise in profit was due to a decrease in bad loans and an increase in interest income. The bank earned a net profit of Rs 571 crore in the same quarter last year. The bank’s total income also saw an increase to Rs 9,699 crore from Rs 8,567 crore in the previous year. The interest income rose to Rs 8,337 crore during the quarter from Rs 7,144 crore in the corresponding quarter a year ago. The bank’s gross Non-Performing Assets (NPAs) decreased to 4.5% of gross advances as of March 31, 2024, compared to 8.44% by the end of March 2023. Net NPAs also came down to 1.23% of advances from 1.77% at the end of 2024. Due to the fall in bad loans ratio, the provisions towards NPAs for Q4FY24 were reduced to Rs 509 crore compared to Rs 789 crore a year ago. The board of the Central Bank of India also approved raising of capital up to Rs 5,000 crore through a Follow-on Public Offer (FPO) or rights issue, Qualified Institutional Placement (QIP) issue, or any other mode or through issue of BASEL III Compliant Tier I and Tier II bonds or such other securities as may be permitted under applicable laws. The Provision Coverage Ratio stood at 93.58% as on March 31, 2024. The bank’s capital adequacy ratio declined to 15.08% from 14.12% at the end of FY23.