Central Bank of India Q2 net loss widens to Rs 924 cr; gross non-performing assets spike to 21.48%

New Delhi: State-owned Central Bank of India on Wednesday reported widening of net loss to Rs 923.60 crore in the second quarter ended 30 September, due to mounting bad loans and falling core income.

The bank had posted a net loss of Rs 750.41 crore in the year-ago period, it said in a regulatory filing.

However, the loss narrowed from Rs 1,522.24 crore reported in the June quarter.

Total income also fell to Rs 6,197 crore in the quarter, from Rs 6,896.26 crore a year ago.

 Central Bank of India Q2 net loss widens to Rs 924 cr; gross non-performing assets spike to 21.48%

Representational image. Getty Images

The bank's interest income fell to Rs 5,685.05 crore in July-September, from Rs 6,166.06 crore in the year-ago period.

The lender's asset quality worsened year-on-year, as gross non-performing assets (NPAs) spiked to 21.48 percent of the gross advances as at September-end as compared with 17.27 percent by the end of the same month in 2017.

Net NPAs also ballooned to 10.36 percent of the net advances, against 9.53 percent a year ago.

However, NPAs or bad loans (both net and gross) corrected sequentially.

In absolute value, gross NPAs stood at Rs 37,410.76 crore as on 30 September, 2018, against Rs 31,641.15 crore by September 2017.

Net NPAs were Rs 15,794.15 crore, compared with Rs 15,899.74 crore a year ago.

Even as bad loans spiked, the bank cut down on its NPA provisions to Rs 1,649.25 crore for the second quarter, against Rs 1,791.98 crore parked aside in the year-ago period.

The overall provisions and contingencies, however, moved up to Rs 1,982.82 crore, while it was at Rs 1,961.66 crore in year-ago September quarter.

The provisioning coverage ratio (PCR) of the bank is 67.74 percent (previous corresponding period 58.58 percent), the lender said.

Stock of Central Bank of India was trading 1.12 percent down at Rs 30.90 on BSE.

Updated Date: Nov 14, 2018 15:43:03 IST