Central Bank of India net loss widens to Rs 1522 crore in Q1

By: |
New Delhi | July 30, 2018 6:21 PM

State-owned Central Bank of India's net loss widened by 74 per cent to Rs 1,522.54 crore in the quarter ending June due to a more than two-fold spike in provisions for bad loans.

Central bank of India

State-owned Central Bank of India’s net loss widened by 74 per cent to Rs 1,522.54 crore in the quarter ending June due to a more than two-fold spike in provisions for bad loans. The bank had registered a net loss of Rs 576.76 crore in the April-June quarter of 2017-18, according to a regulatory filing by the bank.
In preceding quarter ending March 2018, the bank had reported a net loss of Rs 2,113.51 crore.

Income of the bank fell to Rs 5,904.82 crore in the first quarter of 2018-19 from Rs 6,870.78 crore in the same period of 2017-18 as core income dropped. The bank earned an interest income of Rs 5,691.87 crore during the quarter through June, a fall of 8.4 per cent from Rs 6,210.91 crore in the year-ago quarter.

Gross non-performing assets (NPAs) jumped to 22.17 per cent of gross advances by the end of June from 18.23 per cent as on June 30, 2017. In value terms, gross NPAs or bad loans stood at Rs 38,777.66 crore as against Rs 31,398.47 crore. Net NPAs, however, fell to 10.58 per cent (Rs 16,086.25 crore) by the end of June quarter, from 11.4 per cent (Rs 17,407.43 crore) year earlier same period.

The provisioning for bad loans were raised by over two-times to Rs 2,538.14 crore at June-end this year from Rs 1,028.93 crore set aside for the same period of 2017-18. Overall provisions and contingencies too increased to Rs 2,768.22 crore against Rs 1,269.02 crore.

The return on assets further worsened at (-) 1.85 per cent from (-)0.71 per cent year ago. However, it improved from (-)2.75 per cent in March quarter. Central Bank of India said for the accounts covered under the provisions of Insolvency and Bankruptcy Code, it is holding an additional provision of Rs 690.20 crore as on June 30, 2018, in respect of 21 borrower accounts.

“During the quarter, the bank has appropriated the amount recovered in accordance with the resolution plan approved vide order National Company Law Tribunal (NCLT). The Bank has appropriated an amount of Rs 76.29 crore recovered in one of the cases, where appeal is pending before the National Company Law Appellate Tribunal (NCLAT),” it said.

Provisioning coverage ratio stood at 66.42 per cent as on June 30, 2018 against 54.48 per cent year ago. Shares of the bank closed 1.26 per cent higher at Rs 72.20 on BSE today.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Oil above $70 to force cut in auto fuel taxes
2Mango output to be up 4.2% on year this season
3Affle India Rating: hold: Valuations do not factor in risks to business