Central Bank of India has posted a 35.25 per cent rise in net profit at Rs 329.92 crore for the second quarter ended September, on rise in non-interest income.
The public sector lender had reported a net profit of Rs 244.25 crore in Q2 of 2011-12. The total income rose 10.45 per cent to Rs 5,234 crore. Net interest income grew 1.29 per cent to Rs 1,397 crore.
M V Tanksale, chairman and managing director, said the non-interest income rose 8.95 per cent to Rs 353 crore from Rs 324 crore a year ago. It helped to report better bottom line numbers.
Gross non-performing assets grew Rs 1,000 crore to touch Rs 8,507 crore (5.54 per cent as per cent of total advances). It was 3,839.5 crore (2.94 per cent) a year ago.
The provision coverage ratio for NPAs was 39.86 per cent from 56.78 per cent a year ago. Defending the present level of provisions, Tanksale said the bank had set aside money in line with Reserve Bank of India norms. It has to make profits for capital creation. The effort will be to improve provisioning coverage ratio.
The restructured loans were worth Rs 1,049 crore.
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The outstanding restructured book is Rs 21,199 crore.
The pipeline of restructured assets is Rs 2,500-3,000 crore in the second half, he said. The capital adequacy ratio was 11.51 per cent (tier-I of 7.52 per cent). Bank has sought capital infusion of Rs 2,500 crore from the government before March 2013.
The Centre has indicated infusion of Rs 1,900 crore before March 2013, the balance amount of Rs 600 crore will be raised through qualified institutional placement (QIP).
Executive director R K Dubey said the bank may visit capital market in fourth quarter with QIP. The size of the offer would depend on the capital infusion by the government.
The stock closed higher by 4.06 per cent at Rs 73.10 per share on the Bombay Stock Exchange on Tuesday.