Central Bank of India on Tuesday reported a standalone net profit of Rs 155 crore for December quarter 2019-20 helped by better recoveries, higher income and cost reduction.
The lender, which is under the Reserve Bank's prompt corrective action (PCA) framework, had reported a net loss of Rs 718 crore for the year-ago period.
On consolidated basis, the bank reported a profit of Rs 164.28 crore for December quarter. It had posted a net loss of Rs 681.16 crore for the year-ago period.
"The profit was mainly on account of reduction in cost of funds by focusing more on Casa, better trading profit due to a balanced investment portfolio and recovery from written-off accounts," bank's Managing Director and CEO Pallav Mohapatra told reporters.
Total standalone income grew 15 per cent to Rs 7,278 crore from Rs 6,329 crore in the same period last year. Non-interest income more than doubled to Rs 1,249 crore from Rs 544 crore.
Net interest margin (NIM) improved to 2.92 per cent
Gross non-performing assets reduced to 19.99 per cent
from 20.64 per cent, while net NPAs improved to 9.26 per cent
"We expect a recovery of around Rs 4,000-5,000 crore
He expects net NPAs to come below 6 per cent by the end
Total deposits increased to Rs 3.08 lakh crore. Casa
percentage improved to 45.49 per cent. The bank is targeting to raise Rs 200 crore through sale of its real estate properties in the ongoing quarter. It is also looking to garner another Rs 60 crore from
The other stakeholders in the bank include Bank of
India and Bank of Baroda with a 20 per cent stake each, and