Money & Banking
The public sector bank reported net profit of ₹1,045 crore in FY22 against net loss of ₹888 crore in FY21
Central Bank of India (CBoI) reported a standalone net profit of ₹310 crore in the fourth quarter against a net loss of ₹1,349 crore in the year-ago quarter.
The bottom line improved on the back of healthy growth in net interest income (NII), sharp decline in loan loss provisions and write-back in standard asset provisions.
The public sector bank reported a net profit of ₹1,045 crore in FY22 against a net loss of ₹888 crore in FY21.
In the reporting quarter, NII (difference between interest earned and interest expended) jumped 59 per cent year-on-year (yoy) to ₹2,416 crore (₹1,516 crore in the year-ago quarter).
Non-interest income, comprising fee-based income, trading income, recovery in written-off accounts, and others, declined about 26 per cent yoy to ₹632 crore (₹851 crore).
Provisions towards non-performing assets (NPAs) declined about 73 per cent yoy to ₹893 crore (₹3,259 crore). Write-back in standard asset provisions was at ₹293 crore.
Net interest margin improved to 3.26 per cent in the reporting quarter against 2.04 per cent in the year ago quarter.
Total advances up 7.23 per cent yoy
Gross NPAs declined to 14.84 per cent of gross advances as at March-end 2022 against 16.55 per cent as at March-end 2021. Net NPAs declined to 3.97 per cent of net NPAs against 5.77 per cent.
Total advances increased by 7.23 per cent yoy to stand at ₹1,89,712 crore as at March-end 2022. Within total advances, RAM (retail, agriculture and MSME) advances were up 5.90 per cent yoy and corporate advances rose 9.70 per cent.
Deposits were up 3.85 per cent yoy to stand at ₹3,42,692 crore as at March-end 2022. The proportion of low-cost current account, savings account (CASA) deposits increased to 50.58 per cent as at March-end 2022 against 49.24 per cent as at March-end 2021.
The Bank expects to grow its deposits and advances by 8-10 per cent and 10-12 per cent, respectively, in FY23. Further, it has set a target to bring down the percentage of global GNPAs and NNPAs to below 10 per cent and less than 3.50 per cent, respectively.