Central Bank of India’s third-quarter profit more than doubled to R138 crore compared with the same period in the last fiscal, helped by a surge in non-interest income.
Total income increased 4.8% to R7,033 crore in the quarter ended December 31. Net interest income fell 7% to R1,676 crore during the quarter while non-interest income rose nearly 44% to R509 crore. Net interest margin for the quarter fell 43 basis points year-on-year (y-o-y) to 2.56%.
Asset quality deteriorated marginally with gross non-performing assets rising 3% sequentially to R11,793 crore. As a percentage of gross advances, gross NPAs were at 6.2% up 6 bps from Q2FY15. Net NPAs rose 8% sequentially to R6,577 crore, or 3.58% of net advances. The net NPA ratio also rose 20 bps from the end of the September quarter.
Central Bank’s slippages during the quarter were R1,604 crore and the bank made recoveries worth R283 crore. It did not sell any bad loans during the quarter to asset reconstruction companies (ARCs). Total advances grew 6.19% y-o-y to R1,90,172 crore but the corporate advances fell by 9.28% to R1,00,209 crore. Retail portfolio grew 26.42% to R32,042 crore y-o-y, while the housing portfolio rose 29.23% y-o-y to R12,989 crore.