Central Bank of India Q2 result: Net profit rises 90% YoY to ₹605 crore on strong NII, net NPA down to 1.64%

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Central Bank of India reported a whopping 90% rise in its net profit to ₹605.4 crore for the September quarter of FY23-24, against ₹318.2 crore in Q2 FY 22-23. The Central Bank of India's profit surge was led by healthy growth of core income and a fall in bad loans. During the quarter, Central Bank of India's total income rose to ₹8,412 crore from ₹7,065 crore a year ago, Central Bank of India said in a regulatory filing.

Its gross non performing asset (NPA) improved to 4.62 % in the quarter under review. Earlier the government lender had reported NPA at 9.67% in September FY22-23. Its net NPA improved to 1.64% in the September quarter from 2.95% in a year ago period.

Net NPA showcased an improvement of 131 bps. Bank's interest income during the September quarter grew to ₹7,351 crore as against ₹6,155 crore in the year-ago period. Net Interest Income (NII) increased by 10.23% to ₹3,028 crore in the second quarter of the current fiscal as against ₹2,747 crore a year ago.

Due to a decline in bad loans, aka NPA, provision and contingencies declined to ₹967 crore as against ₹1,125 crore in the same period a year ago. CBI's net interest margin jumped to 3.53 per cent as against 3.12 per cent last year, according to BSE filing. Provision Coverage Ratio improved to 92.54 in the quarter from 89.20 in the corresponding period a year ago.

Bank's total business grew by 11.51% to ₹6,02,284 crore against ₹5,40,130 in the second quarter of previous fiscal. Capital adequacy ratio of the bank increased to 14.82 per cent as compared to 13.56 per cent. Central Bank of India's business in Retail, Agriculture and MSME grew by 14.24%.