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Central Bank of India Q3 profit at Rs 155 crore

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Press Trust of India Mumbai
Central Bank of India on Tuesday reported a standalone net profit of Rs 155 crore for December quarter 2019-20 helped by better recoveries, higher income and cost reduction.
The lender, which is under the Reserve Bank's prompt corrective action (PCA) framework, had reported a net loss of Rs 718 crore for the year-ago period.
On consolidated basis, the bank reported a profit of Rs 164.28 crore for December quarter. It had posted a net loss of Rs 681.16 crore for the year-ago period.
"The profit was mainly on account of reduction in cost of funds by focusing more on Casa, better trading profit due to a balanced investment portfolio and recovery from written-off accounts," bank's Managing Director and CEO Pallav Mohapatra told reporters.
Total standalone income grew 15 per cent to Rs 7,278 crore from Rs 6,329 crore in the same period last year. Non-interest income more than doubled to Rs 1,249 crore from Rs 544 crore.
Net interest margin (NIM) improved to 2.92 per cent

from 2.74 per cent. Trading profits on investments rose to Rs 284 crore from Rs 139 crore.
Gross non-performing assets reduced to 19.99 per cent

from 20.64 per cent, while net NPAs improved to 9.26 per cent

from 10.32 per cent in the year-ago period.
Fresh slippages in the quarter stood at Rs 3,998 crore, of which Rs 1,800 crore were on account of divergence found by the RBI for 2018-19. Recovery, including sale to asset reconstruction company stood at Rs 1,273 crore.
Recovery in written off accounts was Rs 520 crore compared to Rs 25 crore last year. It is expecting recoveries in some of the accounts such as Religare Finvest, Coastal Energen and Flexi Tuff in the fourth quarter.
"We expect a recovery of around Rs 4,000-5,000 crore

in the fourth quarter," Mohapatra said.
He expects net NPAs to come below 6 per cent by the end

of this fiscal which will help the bank to come out of PCA.
Total deposits increased to Rs 3.08 lakh crore. Casa

percentage improved to 45.49 per cent. The bank is targeting to raise Rs 200 crore through sale of its real estate properties in the ongoing quarter. It is also looking to garner another Rs 60 crore from

sale of its entire 20 per cent stake in Indo Zambia Bank.
The other stakeholders in the bank include Bank of

India and Bank of Baroda with a 20 per cent stake each, and

Zambia government holding the balance.
"We are in talks with Bank of Baroda and Bank of India to buy our stake in the bank," Mohapatra said.
The bank's scrip settled at Rs 19.35, down 3.73 per cent from the previous close, on the BSE.

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First Published: Jan 28 2020 | 6:55 PM IST

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