Central Bank of India Announces Stellar Q2 Results with 90% Net Profit Growth

21 Oct, 2023

Central Bank of India Announces Stellar Q2 Results with 90% Net Profit Growth

Central Bank of India's Q2 FY23-24 Results: A 90% Surge in Net Profit Driven by Strong NII

In a remarkable financial performance, the state-owned Central Bank of India unveiled its Q2 results for the fiscal year 2023-24. Fueled by robust growth in Net Interest Income (NII), the bank recorded a staggering 90% YoY increase in its net profit, reaching ₹605 crore for the September quarter.

This remarkable profit surge was primarily attributed to the healthy expansion of core income and a substantial reduction in non-performing assets (NPAs). Central Bank of India's total income for the quarter rose to ₹8,412 crore, up from ₹7,065 crore in the same period the previous year, as reported in a regulatory filing. The bank's gross non-performing assets (NPAs) showed significant improvement, dropping to 4.62% in the quarter under review, a substantial improvement from the 9.67% reported in September FY22-23. Moreover, the net NPA saw an impressive improvement, declining to 1.64% in the September quarter from 2.95% a year earlier, showcasing an improvement of 131 basis points.

Central Bank of India's interest income for the September quarter also exhibited

substantial growth, reaching ₹7,351 crore compared to ₹6,155 crore in the same period the previous year. The Net Interest Income (NII) for the second quarter of the current fiscal increased by 10.23% to ₹3,028 crore, up from ₹2,747 crore a year ago.

The decline in bad loans, or NPAs, led to a reduction in provision and contingencies to ₹967 crore, down from ₹1,125 crore in the corresponding period the previous year. The bank's net interest margin also saw an improvement, surging to 3.53% compared to 3.12% in the previous year.

Additionally, the Provision Coverage Ratio increased to 92.54% in the quarter, up from 89.20% in the same period a year ago. Central Bank of India's total business witnessed a substantial growth of 11.51%, reaching ₹6,02,284 crore against ₹5,40,130 in the second

quarter of the previous fiscal year. The bank's capital adequacy ratio also improved to 14.82%, as compared to 13.56%.

Moreover, Central Bank of India's business in Retail, Agriculture, and MSME sectors showed impressive growth of 14.24%. The business per employee metric also saw an uptick, reaching ₹18.60 crore during Q2FY24, compared to ₹17.13 crore for the same period in the preceding year.

Central Bank of India's exceptional Q2 results showcase its robust financial performance, driven by strong NII, a reduction in NPAs, and healthy core income growth, underscoring its resilience and strength in the current economic landscape.