Central Bank of India Q1FY24 results reveal steady year-on-year growth
The Central Bank of India has revealed its financial results for the quarter ending on June 30, 2023, with figures indicating a substantial increase in profitability and business growth.
The bank reported a net profit increase of 77.87%, up to ₹418 crore in Q1FY24, compared to ₹235 crore in Q1FY23. This growth was paralleled in its operating profit, which surged by 50.53% year-on-year to ₹1838 crore for Q1FY24, up from ₹1,221 crore in the same period of the previous year.
The bank also experienced growth in its net interest income (NII), which rose by 48.27% year-on-year to ₹3176 crore in Q1FY24. Furthermore, total income, consisting of interest income and other income, rose by 28.74% from ₹6357 crore in Q1FY23 to ₹8184 crore in Q1FY24.
The Central Bank of India also witnessed an improvement in Return on Assets (ROA), which reached 0.43% in Q1FY24, up from 0.27% in Q1FY23. Simultaneously, Return on Equity (ROE) saw a jump to 1.63% in Q1FY24, compared to 0.98% in Q1FY23.
Central Bank of India reports profit surge in Q1FY24 financial results. Photo courtesy of Albert_Deccan/Wikimedia Commons.
In terms of business highlights, the bank experienced an 8.55% growth in total business, reaching ₹583,261 crore year-on-year. Total deposits increased by 6.05% to ₹363398 crore. Gross advances rose by 12.95% year-on-year to ₹219,863 crore, while net advances surged by 23.35% to ₹212,690 crore.
Regarding asset quality, the bank reported a Gross NPA of 4.95%, showing an improvement of 995 basis points year-on-year, while Net NPA improved to 1.75%, with an enhancement of 218 basis points year-on-year. The Provision Coverage Ratio stood at 92.23%, indicating an improvement of 562 basis points on a year-on-year basis.
Lastly, the bank’s total BASEL III Capital Adequacy Ratio improved to 14.42% as of June 2023, compared to 13.33% in June 2022, with a Common Equity Tier 1 ratio of 12.13% in Q1FY24, showing an increase of 109 basis points.