State-owned Central Bank of India reported a significant 51% surge in net profit for the second quarter ended September 2024, reaching ₹913 crore. This is a marked increase from the ₹605 crore profit earned in the same quarter last year.
The bank’s total income also saw a notable rise, growing to ₹9,849 crore during the July-September 2024 quarter, compared to ₹8,412 crore in the corresponding period of 2023, according to a regulatory filing.
Net Interest Income (NII), a key profitability metric, increased to ₹3,410 crore, up from ₹3,028 crore in the same quarter of the previous year. Interest income climbed to ₹8,203 crore, as compared to ₹7,351 crore in the year-ago period.
The bank’s Net Interest Margin (NIM) improved to 3.44% in Q2 FY2024, compared to 3.29% in the second quarter of the last fiscal year. Additionally, Return on Assets (ROA) increased to 0.85%, reflecting an improvement of 23 basis points (bps) year-on-year.
The Central Bank of India made strides in reducing its Non-Performing Assets (NPAs). Gross NPAs decreased slightly to 4.59% of gross loans by September 2024, compared to 4.62% a year earlier, while net NPAs were significantly reduced to 0.69%, from 1.64% in the same period last year.
The Provision Coverage Ratio (PCR) also improved to 96.31%, up by 377 bps year-on-year, indicating the bank’s strengthened position in managing bad loans.
The bank’s capital adequacy under BASEL III standards improved to 16.27%, with the Common Equity Tier 1 (CET1) ratio standing at 14.01% as of September 2024, compared to 14.82% at the end of Q2 FY2023.
