"This year, the lender made higher provisions even for the wage settlement also and feels Q4FY21 will not be like Q4FY20. The return on assets is also positive (0.19 per cent)," Mohapatra added.
According to a presentation filed with BSE, in line with the Supreme Court interim order, no new non-performing asset (NPAs) were recognised since September 1, 2020. By factoring in Supreme Court verdict its net NPAs stood at 4.73 per cent as of December 31, 2020. Assuming absence of court verdict, the pro forma net NPAs were 6.58 per cent in December 2020.
Reserve Bank of India had placed Central Bank of India
under PCA regime in June 2017 due to high net non-performing assets and negative return on assets. Its Net NPAs stood at 10.2 per cent at end of March 2017. The lender posted net loss of Rs 2,439 crore in 2016-17 mainly on account of higher provisioning. PCA framework places many restrictions on banks, including on lending, management compensation and directors' fees.
Mohapatra said the bank is not feeling the pinch of doing business on account of PCA.
Its advances were at Rs 1,80,856 crore in December 2020 (Rs 1,53,008 crore on March 2017) and deposits were at Rs 3,23,872 crore in December 2020 as against Rs 2,96,671 crore in March 2017). Thus total business was Rs 5,04,728 crore in December 2020, up from Rs 4,49,679 crore in March 2017, according to BSE filing.
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.