Central Bank's Q1 pre-tax profit up over four-fold at Rs 316.33 cr

Higher net interest income, dip in provisions drive profits

Central Bank of India’s profit before tax (PBT) rose around 351 per cent to Rs 316.33 crore in the quarter ended June 30 (Q1FY21) from Rs 70.05 crore in Q1FY20, on sharp growth in net interest income (NII) and lower provisions and contingencies.

The lender’s net profit for the quarter rose to Rs 135.43 crore from Rs 118.33 crore in Q1Fy20. Its capital adequacy ratio stood at 11.5 per cent as of June 30.

The bank’s stock closed 1.97 per cent higher at Rs 18.15 apiece on the BSE Sensex. 

The NII rose 19.83 per cent year-on-year (YoY) to Rs 2,145.3 crore in the quarter, from Rs 1,790.2 crore a year ago. 

Net interest margin (NIM) improved to 3.08 per cent in Q1FY21 against 2.62 per cent a year ago, the bank said.

It made provision of Rs 161.75 crore during the quarter for Special Mention Accounts, which availed of the Covid-19 moratorium. Total provisions stood at Rs 305 crore as of June 30. 

Its asset quality improved during the reporting quarter. Gross non-performing assets (GNPAs) declined to 18.1 per cent from 19.93 per cent in Q1FY20. Net NPAs also fell to 6.76 per cent in June, compared with 7.98 per cent a year ago.

Its provisions and contingencies declined to Rs 974.64 crore in Q1Fy21 from Rs 1,034.78 crore in Q1FY20. Provision coverage ratio (PCR) improved to 79.12 per cent in June, from 76.85 per cent a year ago. Capital adequacy ratio stood at 11.5 per cent as on June 30.