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

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

The lender’s net profit for the reporting quarter rose to Rs 135.43 crore from net profit of Rs 118.33 crore first quarter ended June 2019 (Q1FY20).

The bank’s stock closed 1.97 per cent higher at Rs 18.15 a share on the BSE. Its capital adequacy ratio stood at 11.5 per cent as of June 30.

The net interest income (NII) rose 19.83 per cent year on year at Rs 2,145.3 crore in Q1FY21, from Rs 1,790.2 crore in the same quarter a year ago. Net interest margin (NIM) improved to 3.08 per cent in Q1FY21 from 2.62 per cent in the year-in Q1FY20, bank said in a statement.

The public sector bank has made provision of Rs 161.75 crore during the quarter for Special Mention Accounts where moratorium due to Covid-19 pandemic was extended. A total provision of Rs 305.00 crore was held by the bank as on June 30, 2020.

Its asset quality improved during the reporting quarter. Gross non-performing assets (GNPAs) declined to 18.1 per cent in Q1FY21 from 19.93 per cent in Q1FY20. Net NPAs fell to 6.76 per cent this June from 7.98 per cent last year.

Its provisions and contingencies fell to Rs 974.64 crore in Q1FY21 from Rs 1,034.78 crore in same quarter of FY20.

Provision coverage ratio (PCR) improved to 79.12 per cent in June 2020 from 76.85 per cent a year ago.

Capital adequacy ratio (CAR) of the bank stood at 11.5 per cent as on June 30, 2020, with tier I at 9.22 per cent.