Central Bank of India Reports Significant Increase in Standalone Net Profit and Net Interest Income
During the fourth quarter, the Central Bank of India (CBoI) recorded a significant increase in standalone net profit, which increased by 41 percent to ₹807 crores, compared to ₹571 crores in the same quarter of the previous year.
In addition, the number of non-performing assets (NPAs) and non-performing assets decreased, which provided support for the result.
The net interest income, which is the difference between the interest received and the interest expense, had a year-on-year increase of 0.80 percent, reaching ₹ 3,541 crore in the reporting quarter. This increases from ₹ 3,513 crore in the same period of the previous year.
Financial Performance Overview for the Fiscal Year: Highlights and Trends
Other income has decreased by around 4 percent compared to the previous year, reaching ₹1,362 crore (Rs 1,424 crore). This includes fee income, treasury income, and collection on accounts that have been written down.
In comparison to the same period last year, the net interest margin (annualized) decreased to 3.58 percent from 4.01 percent.
NPA provisions had a decrease of 35 percent, reaching a total of ₹509 crore (₹789 crore). Also, the provisions on standard assets decreased by fifty percent, reaching a total of ₹188 crore (₹378 crore).
When compared to the position at the end of December 2023, the GNPA percentage remained the same at 4.50 percent of gross advances as of the end of March 2024. From 1.27 percent to 1.23 percent of net advances, the net nonperforming asset situation witnessed a slight improvement.
Robust Growth in Gross Advances and Total Deposits: March 2024 Overview
As of the end of March 2024, gross advances had climbed by 15.60 percent compared to the previous year, reaching ₹ 2,51,745 crore. This gain was attributed to the growth of 15.47 percent in RAM (retail, agriculture, and MSME) advances, as well as the growth of 15.85 percent in corporate advances.
The total deposits reached ₹ 3,85,011 billion at the end of March 2024, representing a year-on-year growth of 7.16 percent. The low-cost CASA (current account, savings account) deposits accounted for 50.02 percent of the total deposits, which is a lower percentage than the 50.39 percent that was recorded a quarter earlier.
While this is going on, the board of directors of the public sector bank has given its approval to the bank’s plan to raise capital of up to ₹5,000 crore in total during the fiscal year 25.
Methods of Capital Raising: Exploring FPO, Rights Issue, QIP, and More
The capital raising will be accomplished through a follow-on public offer (FPO), rights issue, qualified institutional placement (QIP), preferential issue, or any other mechanism or combination of these, and the issuance of BASEL III compliant AT1/Tier II bonds or other comparable securities.