Central Bank of India net up 7% in Q4 at Rs 174 cr

The lender plans to raise Rs 2,800 cr in the current fiscal

Public sector lender Central Bank of India recorded a 7.4 per cent rise in net profit for the fourth quarter ended March 31, 2015, at Rs 174 crore due to good recoveries and lower slippages. The net profit for the financial year ended March 31, 2014, stood at Rs 162 crore.

The gross income of the bank recorded a growth of 5.17 per cent to Rs 7,322 crore in the same period.

“The good recoveries and lower slippages helped the profit for the bank,” said R K Goyal, executive director of the bank.

Gross non-performing assets (NPAs) as a percentage of gross advances fell to 6.09 per cent, against 6.27 per cent a year ago. The net NPA as a percentage of net advances too came down to 3.61 per cent from 3.75 per cent a year ago.

The provision coverage ratio, too, improved to 55.16 per cent in the fourth quarter, against 50.68 per cent a year ago.

For the full financial year ended March 31, the bank recorded a net profit of Rs 606 crore, against a net loss of Rs 1,263 crore incurred in the previous financial year. The total income recorded a growth of 7.41 per cent to Rs 28,303 crore during the same period.

“The bank plans to raise Rs 2,800 crore through a follow-on public offer or qualified institutional placement in the current financial year and for the same, it is in the process of appointing merchant bankers,” Goyal said.

The bank's common equity tier-1 capital, according to Basel-III norms, stood at 7.86 per cent at the end of the financial year ending March 31, compared with 6.47 per cent a year ago. The capital adequacy ratio on the other hand stood at 10.90 per cent compared with 9.87 per cent a year ago.