The Central Bank of India on Saturday reported a net loss of Rs 577 crore in the June quarter of FY18, slightly narrower than a net loss of Rs 600 crore in the year-ago period, owing to a dip in provisions. Its provisions fell 17.8% on a year-on-year (y-o-y) basis to Rs 1,269 crore.Its asset quality deteriorated in the quarter as its gross non-performing assets (NPAs) ratio — expressed as a percentage of its gross advances — rose 42 basis points (bps) sequentially and 471 bps y-o-y. In absolute terms, gross NPAs stood at Rs 31,398 crore, up 15% sequentially.
The bank said it needs to set aside Rs 961 crore as provisions for accounts listed by the Reserve Bank of India (RBI) for resolution under the Insolvency and Bankruptcy Code (IBC). The additional provisions, the bank said, would be spread over the next three quarters — by March 2018. Its net interest income — difference between interest earned and interest expended — stood at Rs 1,331 crore in the June quarter, down 19.7% from the year-ago period. The bank reported a total income of `6,871 crore and an operating profit of Rs 451 crore in Q1FY18. Its capital adequacy ratio (CRAR) under Basel-III was at 9.61%, down 30 bps y-o-y.