Central Bank of India’s net profit for the quarter ending December 2022 increased by 64% to Rs 458 crore year-on-year despite a 35% jump in its provisions.
The bank’s provisions stood at Rs 995 crore in Q3FY23.
At operating level, the lender saw a 44% y-o-y increase in its pre-provisioning profit to Rs 1,807 crore, owing to a 94% increase in its non-interest income, which stood at Rs 919 crore.
Net interest margin (NIM) improved 31 basis points (bps) to 4.07% as of December 31. The bank’s net interest income (NII) improved 20% y-o-y to Rs 3,285 crore due to 15% jump in advances to Rs 2.1 trillion. The bank’s retail, agriculture and MSME (RAM) loan book grew by 15.5% led by retail lending.
The retail portfolio of the bank stood at Rs 60,288 crore in Q3FY23. The lender reported 2.1% growth in total deposits in Q3FY23, significantly lower than the industry average of 8.5%, to Rs 3.5 trillion. Current account, savings account (CASA) ratio however, improved 121 bps y-o-y to 51.22% as of December 31.
The bank’s asset quality showed steady improvement with gross non-performing asset (NPA) at 8.85% as of December 31, lower by 631 bps y-o-y and 82 bps sequentially while net NPA stood at 2.09%, lower than 230 bps y-o-y and 86 bps q-o-q.
Provision coverage ratio stood at 91.72%, with an improvement of 595 bps. The bank’s capital adequacy ratio stood at 13.76%, down by 23 bps y-o-y.