Central Bank's Q1 pre-tax profit up over four-fold at Rs 316.33 cr

Its provisions and contingencies fell to Rs 974.64 crore in Q1FY21 from Rs 1,034.78 crore in same quarter of FY20
Central Bank of India’s profit before tax (PBT) rose around 351 per cent to Rs 316.33 crore in the quarter ended June 30 (Q1FY21) from Rs 70.05 crore in Q1FY20, on sharp growth in net interest income (NII) and lower provisions and contingencies.

The lender’s net profit for the quarter rose to Rs 135.43 crore from Rs 118.33 crore in Q1Fy20. Its capital adequacy ratio stood at 11.5 per cent as of June 30.

The bank’s stock closed 1.97 per cent higher at Rs 18.15 apiece on the BSE Sensex. 

The NII rose 19.83 per cent year-on-year (YoY) to Rs 2,145.3 crore in the quarter, from Rs 1,790.2 crore a year ago. 


Net interest margin (NIM) improved to 3.08 per cent in Q1FY21 against 2.62 per cent a year ago, the bank said.

It made provision of Rs 161.75 crore during the quarter for Special Mention Accounts, which availed of the Covid-19 moratorium. Total provisions stood at Rs 305 crore as of June 30. 

Its asset quality improved during the reporting quarter. Gross non-performing assets (GNPAs) declined to 18.1 per cent from 19.93 per cent in Q1FY20. Net NPAs also fell to 6.76 per cent in June, compared with 7.98 per cent a year ago.

Its provisions and contingencies declined to Rs 974.64 crore in Q1Fy21 from Rs 1,034.78 crore in Q1FY20. Provision coverage ratio (PCR) improved to 79.12 per cent in June, from 76.85 per cent a year ago. Capital adequacy ratio stood at 11.5 per cent as on June 30.  



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel