 "Central Bank Q2FY25 results: Net profit rises 51% to Rs 913 crore")
Public sector lender Central Bank of India’s net profit during the second quarter ended September 2024 (Q2FY25) rose 50.91 per cent year-on-year (Y-o-Y) to Rs 913 crore, aided by rise in net interest income (NII) and recoveries from written-off accounts.
Sequentially, the Mumbai-based lender’s net profit rose by 3.75 per cent from Rs 880 crore in June 2024 (Q1FY25).
Bank, in filing with BSE, said its NII expanded 12.62 per cent Y-o-Y to Rs 3,410 crore in Q2FY25 compared to Rs 3,028 crore in the same quarter the previous year. Net interest margin (NIM) improved to 3.44 per cent in Q2FY25 from 3.29 per cent in Q2FY24.
However, the bank in its analyst presentation signalled risks of pressure on NIMs. The moderation in credit and high cost of deposit may lead to contractions in Net Interest Margins (NIM) for the banks, it said.
The bank’s non-interest income, covering commissions, fees, recoveries from written-off account, rose by 55.23 per cent Y-o-Y to Rs 1,647 crore in Q2Fy25. The recoveries from written off accounts grew by 40.91 per cent Y-o-Y to Rs 620 crore and treasury income was up 240.8 per cent Y-o-Y to Rs 392 crore in Q2Fy25.
The lender’s provisions for non-performing assets (NPAs) declined sharply to Rs 340.62 crore in Q2FY25 compared to Rs 1,926 crore in Q2FY24. The asset quality profile improved with gross NPAs declining to 4.59 per cent in September 2024 from 4.62 per cent in September 2023. Net NPAs also declined from 1.64 per cent in September 2023 to 0.69 per cent in September 2024. The provision coverage ratio (PCR), including written-off accounts, stood at 96.31 per cent in September compared to 92.54 per cent a year ago.
Advances grew by 9.48 per cent Y-o-Y to Rs 2.52 trillion in Q2FY25. Retail advances grew by 15.48 per cent Y-o-Y to Rs 76,373 crore in September 2024.
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Total deposits increased 5.57 per cent Y-o-Y to Rs 3.91 trillion. The share of low-cost deposits — current account and saving account (CASA) – declined to 48.93 per cent in September 2024 from 49.40 per cent a year ago.
The bank’s capital adequacy stood at 16.27 per cent, with Common Equity tier-1 (CET-1) at 14.01 per cent at the end of September 2024.