Central Bank Apr-Jun net profit doubles, buoyed by tax writeback
This story was originally published at 18:10 IST on 18 July 2024
Register to read our real-time news.Informist, Thursday, Jul 18, 2024
--Central Bank Apr-Jun net profit 8.80 bln rupees vs 4.18 bln
--Central Bank Apr-Jun total income 95 bln rupees vs 81.84 bln
--Central Bank gross NPA ratio 4.54% as on Jun 30 vs 4.50% qtr ago
--Central Bank Apr-Jun provisions 11.91 bln rupees vs 8.13 bln
--Central Bank net NPA ratio 0.73% as on Jun 30 vs 1.23% qtr ago
--Central Bk current, savings account ratio 65.27% as on Jun 30
--Central Bk total deposits 3.85 trln rupees as on Jun 30, up 5.9% YoY
--Central Bk total advances 2.51 trln rupees as on Jun 30, up 14% YoY
--Central Bank Apr-Jun net interest margin 3.57% vs 3.43% year ago
--Central Bank Apr-Jun NII 35.48 bln rupees vs 31.76 bln year ago
--Central Bank Basel III capital adequacy ratio 15.68% as on Jun 30
--Central Bank Apr-Jun NPA provisions 13.22 bln rupees vs 2.41 bln
NEW DELHI – Central Bank of India's net profit more than doubled on year to 8.80 bln rupees in Apr-Jun, helped by a tax writeback, even as operating profit growth was sluggish. The bank's bottom line was up 9.0% sequentially.
The bank got a tax writeback of 776.8 mln rupees in the reporting quarter, against a tax payment of 6.07 bln rupees a year ago. The net benefit from tax was responsible for almost the entire rise in net profit. Operating profit before provisions and contingencies rose 8.5% on year to 19.93 bln rupees.
"Based on tax review made by the Bank's Management with respect to possible tax benefits arising out of the timing difference, the Net Deferred Tax Assets of 43.72 bln rupees recognised as on Jun 30," the bank said in a note in the earnings release, which its auditors drew attention to.
"Our Conclusion is not modified in respect of this matter," the auditors said, referring to the note on the tax writeback.
Total income rose to 95.00 bln rupees, up 16% on year in Apr-Jun, helped by a 15.4% rise in interest income to 83.35 bln rupees. Other income grew 21.5% to 11.65 bln rupees. The rise in total income was outstripped by total expenses. Interest outgo and operating expenses both rose by over 18%, with total expenses rising to 75.07 bln rupees in the quarter ended June, from 63.46 bln rupees a year ago.
Its asset quality numbers were also mixed. The gross non-performing asset ratio inched up to 4.54% as of Jun 30, against 4.50% a quarter ago, missing guidance of 4%. On the other hand, the net non-performing asset ratio dropped sharply to 0.73% as of Jun 30, from 1.23% on Mar 31. This was helped as the bank upped its provisioning in Apr-Jun. The lender's provisioning for non-performing assets rose over five-fold to 13.22 bln rupees in Apr-Jun, from 2.41 bln rupees a year ago.
Today, Central Bank of India's shares ended 1.0% lower at 64.38 rupees on the National Stock Exchange. The earnings were detailed during market hours.
The bank's net interest margin was 3.57% in the June quarter, largely unchanged from a quarter ago, and up 14 bps from a year ago, the bank said. Central Bank has guided for the margin to remain above 3% in 2024-25 (Apr-Mar). Its provision coverage ratio rose to 96.17% as of Jun 30, from 93.58% as of Mar 31. Total provisions were up nearly 50% at 11.91 bln rupees.
The current account savings account ratio, an indicator of cheaper funds, shrank to 49.19% as of Jun 30 from 50.02% a quarter ago. The bank has guided for its CASA ratio to be 50%, within a margin of one percentage point on either side, in the current financial year.
The bank's total business was at 6.36 trln rupees as of Jun 30, up 9.0% on year, with a slight dip from the previous quarter. Of this, total deposits were up 5.9% on year at 3.85 trln rupees.
The state-owned lender reported a 14.0% on-year growth in gross advances to 2.51 trln rupees as of Jun 30. Net advances increased by 13.3% on year to 2.41 trln rupees. Of this, the retail, agriculture, and micro, small, and medium enterprises business grew by 18.8% annually to 1.72 trln rupees, the bank said.
The bank expects its total business to grow 10-12% in 2024-25. According to its presentation for investors, advances are expected to grow 14-15% and deposits by 8-10% in the current financial year. The guidance was unchanged from that given in the previous year. End
Reported by Aaryan Khanna
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
