Central Bank

Central Bank of India has reported faded results for the quarter ended December 11 with sharp 72% dip in the Net Profit at Rs 113.24 crore over 18% dip in the Net Profit at Rs 1178.56 crore. Asset quality deteriorated in the quarter under review there by leading to higher provisions. Deferred tax income of Rs 112.38 crore has helped the company to post Net Profit of Rs 113.24 crore in quarter under review.

Asset Quality

• Asset quality has deteriorated in the quarter under review. Gross NPA in absolute terms have jumped up 81% y-o-y and 28% q-o-q to Rs 4922.41 crore at end of December 11. Net NPA has zoomed 230% y-o-y and 52% q-o-q to Rs 2668.8 crore in the quarter under review.
• %GNPA stood at 3.69% against 2.34% a year ago and 2.94% a quarter ago. %NNPA stood at 2.04% against 0.71% a year ago and 1.37% a quarter ago. Provision coverage ratio was low at 48.05% at end of December 11 against 70.32% in the corresponding previous quarter.

Business Highlights:

• The Total Business of the Bank increased 15% to Rs 321543 crore at end of December 2011 from Rs 279418 crore at in the corresponding previous year.
• Aggregate Deposits of the Bank increased 15.4% to Rs 188226 crore at end of December, 2011 from Rs 163109 crore in the corresponding previous year. CASA Deposits grew slower by 7% to Rs 61080 crore at end of December 2011. The CASA ratio stood at 32.45% in quarter under review.
• The Gross Advances have increased by 14.6% to Rs 133317 crore at end of December 2011. Agriculture Advances grew 3% to Rs 15621 crore, MSE Advances grew 21% to Rs. 12449 crore, Retail Loans grew 35.5% to Rs 15130 crore in the quarter under review.
• The Investments have increased 16% to Rs 62891 crore at end of December 2011.
• Cost of Deposits has increased to 7.33 % for the period ended December 2011 as compared to 5.68% in the corresponding previous year. YTD Net Interest Margin (NIM) decreased to 2.85% as compared to 3.22% in the corresponding previous year.
• CRAR stands at 12.86% at end of December 2011.
• Yield on Investments increased to 7.26% for the period ended December 2011 when compared to 7.24% a year ago.
• Business per branch has increased to Rs 80.87 crore at end of December 2011 compared to Rs 76.42 crore at end of December 2010, registering a growth of 6%. Business per employee has slightly increased to Rs 8.44 crore from Rs 8.43 crore at end of September 2011.
• Return on Assets (RoA) has decreased to 0.41% at end of December 2011 from 0.89% at end of December 2010.

Quarterly Performance:

For the quarter ended December 11, the bank has reported 18% dip in NII at Rs 1178.56 crore mainly on the back of higher cost of deposits and interest reversals and loss of interest income on NPA's and restructured assets. The Bank has reported 21% increase in the Interest earned at Rs 4741.49 crore while Interest expended grew 42% to Rs 3562.93 crore. The other income grew 43% to Rs 357.37 crore and led Net total income down 9% to Rs 1535.93 crore.

Employee expenses grew marginally 2% to Rs 640.92 crore and that of other expenses grew 17% to Rs 281.16 crore in the quarter under review. The cost to income ratio has jumped up 850 bps to 60% and pulled Operating Profit down 25% to Rs 613.85 crore. On the back of higher slippages and restructured assets, the provisions and contingencies jumped up 156% to Rs 486.36 crore. The bank has reversed Rs 112.38 crore of tax provisions in the quarter under review there by netting just Rs 14.25 crore of tax out go (against Rs 221.45 crore in the corresponding previous year). Resultantly, the Net Profit was down 72% to Rs 113.24 crore.

YTD performance:

For the nine months ended December 11, the bank has reported 53% dip in the Net Profit at Rs 525.89 crore over flat growth in NII at Rs 3905.05 crore. Spike in the cost to income ratio by 350 bps and more than double increase in the provisions and contingencies at Rs 1309.92 crore has dented the growth in the net profits.

Central Bank of India: Financial Performance