Central Bank of India Q2 loss widens to Rs 750 cr as net NPAs jump to 9%

The bank's gross NPAs jumped to 17.27% of gross loans by September 30

Public sector Central Bank of India on Monday reported widening of its net loss at Rs 750.41 crore for the July-September quarter of this fiscal due to higher provisioning for the bad loans.

The bank had reported a net loss of Rs 641.82 crore in the corresponding quarter of the 2016-17 fiscal.

The bank's gross non-performing assets (NPAs) jumped to 17.27 per cent of gross loans by September 30, 2017.

The gross NPAs were 13.70 per cent of the gross loans at the end of the same quarter a year earlier.

Likewise, net NPAs or bad loans jumped to 9.53 per cent as on September 30, 2017 from 8.17 per cent a year ago, it said in a regulatory filing.

In absolute terms, gross NPAs were of the order of Rs 31,641.15 crore as on September-end, up from Rs 25,717.95 crore a year ago.

Net NPAs were valued at Rs 15,899.74 crore, up from Rs 14,352.64 crore during these comparable periods.

This resulted into a higher allocation in provision and contingencies at Rs 1,961.66 crore for second quarter of 2017 -18 from Rs 1,661.21 crore a year ago.

In respect of 9 accounts under provisions of Insolvency and Bankruptcy Code (IBC), the bank siad it was required to make an additional provision of Rs 961 crore, proportionated over three quarters beginning from second quarter of this year so as to cover it fully by March 2018.

"The additional provision of Rs 459 crore has since been made during the quarter leaving a balance provision of Rs 502 crore...by March 2018," it added.

Total income of the bank during the July-September quarter of the current fiscal fell to Rs 6,896.26 crore as against Rs 6,965.45 crore in the similar quarter of previous fiscal, showed the balance sheet.

Stock of the bank closed 0.79 per cent up at Rs 83.05 a unit on the BSE.