Central Bank of India reported a 35% year-on-year (yoy) increase in net profit to R330 crore for the July-September quarter, thanks to robust loan growth and lower tax liabilities. The net interest margins (NIMs) of the bank was up marginally at 2.68% compared with 2.64% in the previous quarter.
The asset quality of the bank deteriorated with the gross NPAs going up by 67 basis points (bps) to 5.54% and the net non-performing assets (NPAs) up 58 bps to 3.8%. Central Bank saw slippages to the tune of R1,783 crore during the quarter.
Central Bank CMD MV Tanksale said the power, aviation and infrastructure sectors formed a chunk of fresh NPAs. The bank restructured assets to the tune of R1,049 crore in the quarter and has predicted a pipeline of R2,500-3,000 crore for the second half of the financial year 2012-13, he added.
The bank’s loan book grew 18% yoy to R1.54 lakh crore led by strong growth in the retail, agriculture and small and medium enterprises (SME) advances. The retail loanbook grew 34% y-o-y to R18,964 crore, agriculture loans at 24% y-o-y to R18,677 crore and SME at 20% y-o-y to R14,693 crore.
The deposit growth was slower at 8% y-o-y to R2.04 lakh crore, with the current account savings account (Casa) balance rising marginally by 18 bps to 33% over the same period. The bank has estimated around 15% growth in both loans and deposits for the full fiscal year.
The lower tax expenses at R59 crore during the reporting period against R122 crore in the year-ago period helped the bank boost profitability. The capital adequacy ratio of the bank stood at 11.61% with a tier 1 capital of 7.52%. The bank said that it has requested the government for a capital infusion of R2,500 crore.
