Net loss widens to INR 1522 cr in first quarter for Central Bank of India

The bank earned an interest income of Rs 5,691.87 crore during the quarter through June, a fall of 8.4 per cent from Rs 6,210.91 crore in the year-ago quarter.

State-owned Central Bank of India's net loss widened by 74 percent to Rs 1,522.54 crore in the quarter ending June due to a more than two-fold spike in provisions for bad loans.

The bank had registered a net loss of Rs 576.76 crore in the April-June quarter of 2017-18, according to a regulatory filing by the bank.

In preceding quarter ending March 2018, the bank had reported a net loss of Rs 2,113.51 crore.

Income of the bank fell to Rs 5,904.82 crore in the first quarter of 2018-19 from Rs 6,870.78 crore in the same period of 2017-18 as core income dropped.

The bank earned an interest income of Rs 5,691.87 crore during the quarter through June, a fall of 8.4 percent from Rs 6,210.91 crore in the year-ago quarter.

Gross non-performing assets (NPAs) jumped to 22.17 percent of gross advances by the end of June from 18.23 percent as on June 30, 2017. In value terms, gross NPAs or bad loans stood at Rs 38,777.66 crore as against Rs 31,398.47 crore.

Net NPAs, however, fell to 10.58 percent (Rs 16,086.25 crore) by the end of June quarter, from 11.4 percent (Rs 17,407.43 crore) year earlier same period.

The provisioning for bad loans was raised by over two-times to Rs 2,538.14 crore at June-end this year from Rs 1,028.93 crore set aside for the same period of 2017-18.

Overall provisions and contingencies too increased to Rs 2,768.22 crore against Rs 1,269.02 crore.

The return on assets further worsened at (-) 1.85 percent from (-)0.71 percent year ago. However, it improved from (-)2.75 percent in the March quarter.

Central Bank of India said for the accounts covered under the provisions of Insolvency and Bankruptcy Code, it is holding an additional provision of Rs 690.20 crore as on June 30, 2018, in respect of 21 borrower accounts.

"During the quarter, the bank has appropriated the amount recovered in accordance with the resolution plan approved vide order National Company Law Tribunal (NCLT). The Bank has appropriated an amount of Rs 76.29 crore recovered in one of the cases, where the appeal is pending before the National Company Law Appellate Tribunal (NCLAT)," it said.

Provisioning coverage ratio stood at 66.42 percent as on June 30, 2018, against 54.48 percent year ago.

Shares of the bank closed 1.26 percent higher at Rs 72.20 on BSE today.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)