Central Bank of India on Friday reported a net loss of Rs.898.04 crore for the March quarter due to higher provisions for bad loans. The loss was restricted due to a tax write-back of Rs.1,448.86 crore in the quarter.
This was the second consecutive quarter that the bank has reported a
net loss. In the third quarter, the bank had reported a loss of Rs.835.52 crore. The lender reported a profit of Rs.174.29 crore in the March 2015 quarter.
Gross non-performing assets (NPAs) surged to Rs.22,720.88 crore at the end of the March quarter from Rs.11,873.05 crore a year ago. The bank reported gross NPAs of Rs.17,563.83 in the December quarter.
Provisions and contingencies jumped to Rs.2,286.66 crore in the quarter from Rs.617.17 crore a year ago. For the December quarter the bank set aside Rs.1,499.05 crore as provisions against bad loans.

RBI also asked banks to make adequate provisions for these stressed assets.
As a percentage of total loans, gross NPAs stood at 11.95% at the end
of the March quarter as compared with 8.95% in the previous quarter and
6.09% in the year ago quarter.
Net NPAs were at 7.36% as compared with 5.3% in the previous quarter and 3.61% in the same quarter last year.
Net interest income (NII), or the core income a bank earns by giving loans, dropped 18.65% to Rs.1,563.27 crore from Rs.1,921.63 crore in the same quarter last year. Non-interest income rose
marginally by 1.55% to Rs.560.48 crore from Rs.551.91 crore in the same period last year.
On Friday, shares of Central Bank of India closed at Rs.78.05
on BSE, down 0.89% from the previous close, while the benchmark Sensex
fell 1.2% to close at 25,489.57 points. The earnings were released after
markets closed.
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