The public sector central bank of India reported that a 14.4% rise in year on year and a rise in the net profit to Rs.135.43 crore in the June quarter of FY21. The bank reported that the total income of Rs 6,727 crore, increased by 3.6% y-o-y. NII – the difference between interest generated and interest expended at the rate of Rs 2,146 crore, increased by 20% y-o-y. Provisions fell 6% y-o-y to Rs 975 crore. Central Bank’s operating profit rises 17% y-o-y to Rs 1,291 crore. The net interest margin (NIM), measured the difference between income generated and the amount of interest paid out to lenders of their assets, raised 23 basis points (bps) sequentially to 3.08%.
The bank issued the net profit to Rs 135.43 crore in the June quarter of FY21. The profit utilized for improvement in net interest income (NII) and a decrease in provisions. The central bank of India reported a total income of Rs 6,727 crore, of 3.6% y-o-y. NII means the difference between interest generated and interest expended – at Rs 2,146 crore, up 20% y-o-y. Provisions fell 6% y-o-y to Rs 975 crore. Central Bank’s operating profit rise to 17% y-o-y to Rs 1,291 crore. The net interest margin (NIM), a key measure of profitability, raised 23 basis points (bps) sequentially to 3.08%. There is no need to disclose details of its moratorium book by the lender. It showed an improvement in terms of asset quality and maintains secrecy. In absolute terms, GNPAs stood at Rs 31,946 crore, while net NPAs at the level of Rs 10,469 crore at the closing of Q1FY21.
During the quarter, slippages were at the tune of Rs 20 crore, down from Rs 2,141 crore a year before as the moratorium ensured stability on some accounts. As per the bank Gross advances at Rs 1.76 lakh crore as on June 30, 2020, with the growth of 7% y-o-y. The total deposits of the bank stood at Rs 3.21 lakh crore as on June 30, 2020, up 8% y-o-y. The current account savings account (CASA) share increased to 47.3% from 45.77% a year before. Central Bank’s shares closed at Rs 18.15 on the Bombay Stock exchange on Tuesday, up 1.97% from their previous close. The new results helped the bank to cut down on its provision for non –performing assets, bad loans, and other contingencies for a period.
