Central Bank returns to the black in Q4

Public sector lender Central Bank of India on Friday announced a net profit of R169 crore for the quarter ended March 31 against a loss of R105 crore in the corresponding quarter of the previous fiscal helped by higher interest income and lower provisions for bad loans.

Public sector lender Central Bank of India on Friday announced a net profit of Rs 169 crore for the quarter ended March 31 against a loss of Rs 105 crore in the corresponding quarter of the previous fiscal helped by higher interest income and lower provisions for bad loans.

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The bank’s net interest income (the difference between interest earned and interest paid) grew 21% to R1,534 crore during the quarter compared to Rs 1263 crore a year-ago. Other income of the bank grew 47% to R64 crore during the fourth quarter against R43 crore in the same quarter of the previous fiscal.

The bank improved its asset quality as gross non-performing assets (NPAs) or bad loans declined to 4.80% at the end March 2013 from 5.64% at the end December 2012.

As on March 31, 2013, the bank’s total advances rose 16% to R1.72 lakh crore while total deposits grew 15% to Rs 2.3 lakh crore.