In a recent financial announcement, Central Bank of India, a prominent public sector lender, reveals its financial performance for the July–September quarter of the current fiscal year. This report signifies a positive trajectory for the bank.
HEALTHY PROFITABILITY
Central Bank of India reported a net profit of Rs 605.4 crore for the July–September quarter, reflecting a robust financial performance.
IMPROVED ASSET QUALITY
The bank’s gross non-performing assets (GNPA) demonstrated a favorable trend, decreasing from 4.95 percent in the previous quarter (Q1FY24) to 4.62 percent in the current quarter. This improvement is indicative of a healthier loan portfolio.
EFFICIENT ASSET MANAGEMENT
The bank’s net non-performing assets (NPA) also exhibited a positive trend, standing at 1.64 percent in the current quarter, down from 1.75 percent in the last quarter. This reduction highlights effective asset quality management.
CENTRAL BANK OF INDIA BUSINESS GROWTH
Central Bank of India’s total business grew impressively, showing an 11.51 percent increase to reach Rs 602,284 crore in the second quarter of this fiscal year (Q2FY24), compared to Rs 540,130 in the same period of the previous year (Q2FY23).
This substantial growth in business underscores the bank’s expanding footprint and its ability to attract funds.
DEPOSITS ON THE RISE
The bank’s total deposits increased by 8.21 percent, reaching Rs 371,252 crore in Q2FY24, compared to Rs 343,081 in Q2FY23. This growth in deposits reflects the bank’s capacity to accumulate funds from customers.
ENHANCED PROVISION COVERAGE
A significant achievement is the improvement in the Provision Coverage Ratio (PCR), which increased from 89.20 percent in the second quarter of the previous year (Q2FY23) to 92.54 percent in Q2FY24.
This marked improvement of 334 basis points indicates the bank’s enhanced ability to cover potential losses, providing reassurance to stakeholders.
OPERATING PROFIT
The Central Bank of India reported a 13.47 percent improvement in operating profit, which reached Rs 3,369 crore on a half-yearly basis.
However, on a quarterly basis, there was a slight dip by 12.47 percent to Rs 1,530 crore due to increasing non-staff operating expenses.
INTEREST INCOME
In the realm of interest income, the bank reported a 10.23 percent increase in Net Interest Income (NII), totaling Rs 3,028 crore in the second quarter of the fiscal year, compared to Rs 2,747 crore in the same period of the previous year (Q2FY23).
The NII also saw a remarkable half-yearly increase of 26.90 percent, reaching Rs 6,204 crore in Q2FY24, up from Rs 4,889 crore in Q2FY23.
INTEREST MARGIN
The Net Interest Margin (NIM) exhibited a positive trend, improving to 3.53 percent compared to 3.12 percent in Q2FY23 on a half-yearly basis. However, there was a marginal reduction to 3.43 percent in Q2FY24 from 3.44 percent in Q2FY23 on a quarterly basis, attributed to the increase in interest pay-out on deposits.
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ROBUST BANKING NETWORK
As of September 2023, Central Bank of India boasts an extensive banking network, comprising 4,489 branches. Notably, a significant proportion, 65.22 percent (2,928 branches), is strategically located in rural and semi-urban areas.
The bank also operates 4,044 ATMs and 10,962 Banking Correspondent (BC) Points, creating a robust network of 19,495 Touch Points, showcasing its commitment to providing accessible banking services across the nation.