Central Bank Of India Reports Fourth Consecutive Quarterly Loss
Public sector lender Central Bank of India reported a net loss for the second quarter of the current fiscal as the bank continued to clean up its balancesheet.
For the quarter ended September 2016, Central Bank of India had a net loss of Rs 641.82 crore compared to a net profit of Rs 112.87 crore. This is fourth consecutive quarterly loss reported by the bank.
Bad loans remained high during the quarter although the addition to bad loans compared to the previous quarter was moderate. Gross non-performing assets (NPAs) rose to Rs 25,718 crore in the second quarter, compared to Rs 25,107 crore at the end of the first quarter. Compared to the second quarter last year, gross NPAs are up by 92.5 percent.
The gross NPA ratio at the end of the second quarter rose to 13.70 percent from 13.52 percent in the previous quarter.
The bank set aside Rs 1661 crore in provisions compared to Rs 1544 crore in the previous quarter. Post provisioning, net NPAs stood at 8.17 percent, unchanged from the previous quarter.
The bank has a common equity tier-1 capital adequacy ratio of 7.90 percent. The bank recently raised Rs 156 crore from Life Insurance Corporation of India.