Public sector lender Central Bank of India's net profit rose by 59.3% year-on-year (y-o-y) to R180 crore in the third quarter of the financial year 2012-13. The growth in net profits was helped by weak profits in the same quarter of the previous financial year which was hit by exceptional expenditure. In the previous quarter of this financial year the bank posted a net profit of R330 crore.
The net interest margins (NIMs) of the bank rose by 7 basis points (bps) to 2.6%, thanks to easing cost of funds.
Central Bank chairman and managing director MV Tanksale said that the asset quality worries have begun to ease. “The slippages have been progressively coming down. In the October-December quarter they stood at R1,212 crore down from R1,800 crore in the previous quarter,” he said.