Central Bank Q3 net up 6.45% at Rs 165 cr on better net interest and margin

Other income down 38% to Rs 774 crore; provisions & contingencies decline to Rs 7,437 crore from Rs 12,492 crore

Public sector lender Central Bank of India posted a 6.45 per cent rise in net profit at Rs 165 crore in the third quarter ended December 2020 (Q3FY21) on improvement in net interest income and margin.

It had posted a net profit of Rs 155 crore in quarter ended December 2019 (Q3FY20).

Central Bank stock closed flat at Rs 14.8 per share on BSE.

Net Interest Income (NII) in reporting quarter rose by 10.19 per cent at Rs 2,228 crore from Rs 2,022 crore in December 2019. Net Interest Margin improved in Q3FY21 at 2.97 per cent as against 2.92 per cent in Q3FY20.

Other income declined by 38.03 per cent at Rs 774 crore in Q3FY21 from Rs 1,249 crore in Q3FY20.

The provisions & contingencies declined to Rs 7,437.4 crore in Q3FY21 from Rs 12,492.1 crore in Q3FY20.

According to presentation filed with BSE in line with the Supreme Court interim order, no new non-performing asset (NPAs) was recognized since September 01, 2020. If such NPAs were recognized, the pro forma Gross NPA would have been at 18.19 per cent and the pro forma Net NPA was 6.58 per cent in December 2020.

Its deposits grew by five per cent in 12 months to Rs 3,23,872 crore in December 2020 from Rs 3,08,435 crore in December 2019.

The advances grew by 8.68 per cent at Rs 1,80,856 crore at end of Q3FY21 from Rs 1,66,411 crore as on December 2019. Bank expects overall credit to go by 5-6 per cent in FY21, said its managing director and chief executive Pallav Mohapatra.

The Capital Adequacy Ratio (CAR) was at 12.39 per cent with tier I of 10.32 per cent at end of December 2020.