Central Bank of India Q3 net falls 66% to Rs 61 cr

Higher provisions, tax expenses hurt earnings

Central Bank of India today said its net profit for the quarter ended December 31, 2013 fell by 66% from a year earlier to Rs 61.5 crore as it made higher provisions and paid more tax.

 

Net interest income, or the difference between interest income and interest expense, increased 28% from a year ago to Rs 1,807.6 crore during the three-month period.

 

The state-run lender made provisions of Rs 657.9 crore in October-December period compared to Rs 627.7 crore a year earlier as asset quality deteriorated. The gross non-performing asset ratio increased by 104 basis points to 6.48% at the end of December, 2013.

 

The bank incurred tax expense of Rs 149.6 crore during the quarter compared to Rs 28.7 crore tax write-back in the corresponding period of last year.

 

Central Bank of India closed the third quarter with a capital adequacy ratio of 11.02% as per Basel III rules.

On Thursday at 1435 hours, the lender's stocks on BSE were trading 4.4% higher at Rs 47 apiece