Central Bank of India Friday reported net profit of Rs 169.15 crore in the fourth quarter ended March 31, 2013, helped by lower provisioning and robust growth in net interest income.
Mumbai: Central Bank of India Friday reported net profit of Rs 169.15 crore in the fourth quarter ended March 31, 2013, helped by lower provisioning and robust growth in net interest income.
The public sector bank had reported a net loss of Rs 105.23 crore in the corresponding period last fiscal.
"The bank has seen turnaround sequentially...Our net profit has shown sound rise on the back of lower provisions, which was an outcome of improvement in asset quality, coupled with robust core income growth," bank's Chairman and Managing Director Mohan V Tanksale told reporters here.
During the quarter, provisions were down a whopping 48 percent to Rs 445 crore from Rs 858.69 crore in the same period of FY'12.
While net interest income rose 21.5 percent to Rs 1,534 crore on year-on-year basis, the net interest margin went up to 2.68 percent from 2.59 percent last year.
For the whole fiscal, net profit of the bank grew 90.43 percent to Rs 1,015 crore compared to Rs 533 crore reported in FY12.
During the last financial year, while deposits grew 15.22 percent to Rs 2.26 lakh crore, advances rose 16.92 percent to Rs 1.76 lakh crore.
"We hope to grow our advances and deposits by around 18 percent this financial year," Tanksale said, adding the bank expects repricing in significant amount of bulk deposit going ahead which will give boost to NIM.
He also said the bank expects to attain a NIM in the range of 2.75-3 percent with improvement in CASA to around 35 percent.
During the last fiscal, the asset quality also shown improvement with gross NPA declining to 4.80 percent from 4.83 percent in FY12 and net NPA to 2.90 percent from 3.09 percent.
"We aim to reduce the gross NPA to below 4 percent and net NPA to below 2.5 percent going ahead," Tanksale said.
The public sector lender, which had around Rs 22,000 of restructuring by the end of March quarter, expects to witness another Rs 1,000 crore of restructuring in the future.
On fund-raising plan, Tanksale said the bank would hit the market if it gets proper valuation to raise money to raise its Tier-I capital.
When asked about the money laundering charges by Cobrapost, he said the bank had taken action against the official concerned and investigating the matter.
The public sector bank also said that it had recovered around Rs 35 crore from Kingfisher account, which had turned NPA, out of its total exposure of Rs 350 crore.