Public Sector lender Central Bank of India today reported a 17% decline in the net profit for the quarter ended June 30, to Rs 281 crore from Rs 377 crore reported in the corresponding quarter a year ago.
The bank attributed the dip in net profit to higher provisions and increasing cost of deposits. The provisions for the quarter stood at Rs 511 crore as against Rs 331 crore in the corresponding quarter last year. In the same period the cost of deposits were up by 130 basis points to 6.8% from 5.5%.
However, the operating profit of the bank was up by 18.56% to Rs 792 crore for the quarter, mainly due to 19% rise in the net interest income. The net interest income of the bank stood at Rs 1,330 crore as against Rs 1,119 crore reported in the same period a year ago.
Capital adequacy ratio of the lender stood at 12.68%.
The shares of the bank plunged 2.7% trading at Rs 114.90 per share on the Bombay Stock Exchange.
