Central Bank of India (CBoI) reported a 51 per cent year-on-year (y-o-y) jump in second quarter (Q2FY25) net profit at ₹913 crore, with the bottom line being supported by a healthy growth in net interest income, robust increase in other income and sharp decline in loan loss provisions.

The profitability also comes despite higher income tax outgo of ₹654 crore (against write-back of ₹42 crore in the year-ago quarter).

The Mumbai-headquartered public sector bank had reported a net profit of ₹605 crore in the year ago quarter.

Net interest income (difference between interest earned and interest expended) in the reporting quarter was up about 13 per cent y-o-y at ₹3,410 crore ( ₹3,028 crore in the year ago period).

Other income, including fee-based income, treasury income and recovery in written-off account, shot up about 55 per cent y-o-y to ₹1,647 crore ( ₹1,061 crore).

Non-performing assets (NPAs) provisions declined about 82 per cent y-o-y to ₹340 crore ( ₹1,927 crore). Provisions for restructured accounts shot up to ₹229 crore (write-back of ₹17 crore).

Net interest margin (NIM) improved to 3.44 per cent against 3.29 per cent in the year ago period.

Gross Non-Performing Assets (NPAs) position improved to 4.59 per cent of gross advances as at September-end 2024 against 4.62 per cent as at September-end 2023. Net NPAs position too improved a shade to 0.69 per cent of net advances against 1.64 per cent.

Gross advances increased by 9.48 per cent y-o-y to ₹2,52,944 crore as at September-end 2024, with RAM (retail, agriculture and MSME) advances increasing by 19.95 per cent and corporate advances declining 10.61 per cent.

Total deposits rose 5.57 per cent y-o-y to stand at ₹3,91,914 crore as at September-end 2024. Low-cost CASA (current account, savings account) deposits declined to 48.93 per cent of total deposits against 49.40 per cent in the year ago quarter.

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