Central Bank of India on Thursday reported a 27% year-on-year increase in its net profit for the three months ended September 30, to Rs 318 crore. This is the first time the bank has posted earnings after coming out of the prompt corrective action (PCA) framework of the Reserve Bank of India (RBI). The increase in profit comes despite 5% YoY increase in provisions.
The bank’s pre-provisioning profit (PPOP) increased to Rs 1,748 crore in Q2FY23 from Rs 1,445 crore a year ago. Net Interest Income (NII) for the year increased to Rs 2747 crore, up 24.5% YoY. Net interest margin (NIM) improved to 3.44% as of September 30, from 2.97% a year ago.
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The bank’s gross non-performing asset (NPA) ratio improved to 9.67% as of September 30, against 15.52% a year ago, while net NPA ratio improved to 2.95% from 4.51% in the same quarter last year.
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The bank’s capital adequacy ratio as per Basel III norms stood at 13.56% as of September 30,s against 13.51% a year ago.