Central Bank of India’s Q2 profit rises 33%

In the second quarter (Q2FY26), the Central Bank of India (CBoI) reported a 33% year-over-year (y-o-y) increase in standalone net profit at ₹1,213 crore. 

The bottom line was bolstered by a sharp decline in total provisions, including those related to income tax, restructured accounts, and non-performing assets. In the previous year, the public sector bank posted a net profit of ₹913 crore. For FY26, its board authorized a second interim dividend of 2%, or ₹0.20 per equity share with a face value of ₹10.

The profitability in the reporting quarter came despite decline in both net interest income and other income.Net Interest Income (interest earned less interest expended) dipped about 4 per cent y-o-y to ₹3,283 crore in Q2FY26 (₹3,410 crore in Q2FY25).

Other income, comprising fee-based income, treasury income and other non-interest income, declined about 8.50 per cent y-o-y to ₹1,507 crore (₹1,647 crore).

Net Interest income was down 52 basis points from 3.41 per cent in Q2FY25 to 2.89 per cent in Q2FY26.Gross non-performing assets (NPA) position improved to 3.01 per cent of gross advances as on September-end 2025 against 4.59 per cent as on September-end 2024.

Net NPA position too improved to 0.48 per cent of net advances against 0.69 per cent.Loan loss provisions declined 58 per cent to ₹143 crore (₹340 crore).

Total provisions, including towards loan loss, restructured accounts and income tax, were 54 per cent lower at ₹573 crore (₹1,252 crore).

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PSU Bank's 144 CASA Target: Are Employees Getting Pressured by Anniversary Campaigns?

 

In honor of Sir Sorabji Pochkhanwala, the founder of the Central Bank of India, the Meerut Regional Office has started a "Birthday Special CASA Campaign" to commemorate his 144th birthday. During August 2025, each branch is required to open 144 new CASA (Current Account & Savings Account) accounts as part of the program. 

 The "Celebrating 144 Years of Legacy with 144 CASA accounts per branch" campaign lays out several steps to meet the goal:

• Pledge by each branch to open 144 new CASA accounts (Cent Vyavasay, Cent Queen, and Regular CASA).
• At least 25 accounts to be opened through TAB in each branch for campaign qualification.
• “Vyavasay Darbaar” events in market areas to engage traders, service providers, and professionals.
• “Cent Queen Connect” women‑centric camps with special CASA helpdesks at beauty parlours, hospitals, boutiques, and ladies’ clubs.
• Recognition and awards for top performers.

Employee union sources in the industry have previously expressed concerns about similar high-volume anniversary or commemorative targets, describing them as a source of undue stress and unrealistic expectations, despite the bank's description of the campaign as a tribute to its founder's legacy and customer relationships. 

Similar target-driven initiatives in other banks have recently generated discussion about the effects of aggressive account-opening drives on people's lives and work-life balance. According to staff representatives, these initiatives frequently put frontline staff under undue strain, particularly in locations where the majority of citizens already have active bank accounts.

Social Media Reactions of Employees After the announcement, a number of bankers vented their annoyance on social media about the target of 144 CASA accounts. Many characterized it as demoralizing and unworkable, pointing out that while higher-level offices concentrate on ceremonial events, branch staff are frequently burdened with such efforts. 

Rather than recognizing employees' accomplishments with appropriate incentives, others criticized management for ignoring staffing shortages, establishing unrealistic expectations, and utilizing commemorative dates to impose additional burden. Some cautioned that this type of ongoing strain can be detrimental to mental health, citing instances in the past where severe stress had disastrous results.

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Central Bank of India Q1 Net profit surges 33%

State-owned Central Bank of India on Saturday posted a 33 per cent growth in net profit at Rs 1,169 crore during the first quarter of this financial year, aided by improvement in core income and decline in bad debts.

Gross non-performing assets (NPAs) decreased from 4.54% of gross advances at the end of the June quarter to 3.13 percent at the end of the June quarter, indicating an improvement in the bank's asset quality. 

 In the same quarter of the prior fiscal year, the Mumbai-based bank made a net profit of Rs 880 crore. According to a regulatory statement by the Central Bank of India, overall income increased from Rs 9,500 crore in the same quarter of FY25 to Rs 10,374 crore in the June quarter of 2025–2026.

Gross advance increased by 9.97 per cent to Rs 2,75,595 crore from Rs 2,50,615 crore at the end of June 2024.

Similarly, net NPAs, or bad loans, declined to 0.49 per cent, as against 0.73 per cent in the year-ago period.

The bank's operating profit grew to Rs 2,304 crore during the reviewed period from Rs 1,933 crore during the same quarter last year. 

 Gross non-performing assets (NPAs) decreased from 4.54% of gross advances at the end of the June quarter to 3.13 percent at the end of the June quarter, indicating an improvement in the bank's asset quality. 

 Consequently, compared to Rs 1,191 crore in the same period last year, provisions and contingencies decreased by half to Rs 521 crore in the first quarter. The Provision Coverage Ratio (PCR) increased by 85 basis points, from 96.17 percent to 97.02 percent.

Capital adequacy ratio of the bank rose to 17.6 per cent, from 15.6 per cent in the same quarter of FY25.

Total business grew by 10.84 per cent to Rs 7,04,485 crore from Rs 6,35,564 crore at the end of June 2024.

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Central Bank of India Q4 Profit rises 28%

Central Bank of India reported a 28% year-on-year rise in net profit for the March quarter, coming in at ₹1,033.6 crore compared to ₹807.3 crore a year earlier.

Net interest income (NII) fell 4% year-on-year to ₹3,399 crore from ₹3,541 crore. However, total income, including interest and non-interest income, improved by 7.57% to ₹10,433 crore from ₹9,699 crore in the same period last year.

The lender’s asset quality strengthened notably. Gross non-performing assets (GNPAs) declined to 3.18% from 3.86% in the previous quarter, while net non-performing assets (NNPAs) improved to 0.55% from 0.59% sequentially.

Return on assets (ROA) improved to 0.90% for Q4FY25 compared to 0.76% a year ago, while return on equity (ROE) rose to 13.21% from 11.68% during the same period.

The bank continues to maintain a strong nationwide footprint with 20,915 touchpoints, including 4,545 branches—of which nearly 65% are located in rural and semi-urban areas—as well as 4,085 ATMs and 12,260 banking correspondent points.

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Central Bank of India Released Recruitment of Credit Officer for 1000 Posts

 

The formal announcement for the hiring of Credit Officers has been released by the Central Bank of India. 

The Central Bank of India Credit Officer Recruitment 2025 has 1,000 openings in total. The online application process will be available from January 30, 2025, to February 20, 2025. The announcement was made public on January 30, 2025. Applications for the Central Bank Credit Officer Recruitment 2025 are accepted from qualified applicants via the centralbankofindia.co.in website.

Central Bank Credit Officer Recruitment 2025 Important Date

• Apply Online Start Date: 30 January 2025
• Last Date to Apply: 20 February 2025
• Last Date for Fee Payment: 20 February 2025
• Exam Date: To be released

Central Bank Credit Officer Recruitment 2025 Application Fee

• General / OBC / EWS: Rs. 750/-
• SC / ST / PWD: Rs. 150/-
• Mode of Payment: Online

Central Bank Credit Officer Recruitment 2025 Age Limit

• Minimum Age: 20 Years
• Maximum Age: 30 Years
• Age Limit as on 30/11/2024
• The age relaxation will be given as per the rules.

Central Bank Credit Officer Recruitment 2025 Educational Qualifications

Post Name	Qualification
Credit Officer	Graduate (60% UR/EWS, 55% Other)

Central Bank Credit Officer Recruitment 2025 Vacancy Details

Post Name	Vacancy
Credit Officer	1000  (UR-405, SC- 150, ST-75, OBC-270, EWS-100)

Central Bank Credit Officer Recruitment 2025 Selection Process

The Central Bank Credit Officer Recruitment 2025 selection process includes the following stages:

• Written Exam
• Documents Verification
• Medical Test

Central Bank Credit Officer Recruitment 2025 Exam Pattern

Subject	Questions	Marks
Reasoning	30	30
English	30	30
GK (Banking)	30	30
Quantitative Aptitude	30	30
Total	120	120

Central Bank Credit Officer Recruitment 2025 Notification PDF & Apply Online Form Link

Notification PDF	Click Here
Apply Online	Click Here

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Central Bank of India Q3 Net profit surges 33% YoY

On Monday, January 20, the Central Bank of India announced that its standalone net profit for the December 2024 quarter of the current fiscal year (Q3 FY25) increased by 33% year over year (YoY) to Rs.958.93 crore. In the same period previous year, the profit was Rs.717.86 crore. In the meantime, the net interest income increased 12.31% year over year to Rs.3540.12 crore from Rs.3151.85 crore. 

In comparison to the equivalent quarter ended December 31, 2023, when the net interest margin (NIM) was 3.28%, the NIM for the quarter ended December 31, 2024, at 3.48%. During the quarter, the public sector lender's provisions and contingencies decreased to Rs.556.64 crore from Rs.821.98 crore during the same time last year.

Also Read - Quarterly Results of all banks for Q3FY25

Additionally, the number decreased sequentially from Rs.598.06 crore. At the end of Q3 FY25, gross non-performing assets (GNPA) totaled Rs.10,459.89 crore, representing a 3.86% GNPA percentage, down from 4.50% YoY and 4.59% QoQ. At Rs.1,554.98 crore, the net non-performing assets (NNPA) percentage was 0.59%, which was lower than the 0.69% in the September 2024 quarter and the 1.27% in the December 2023 quarter. 

The bank's overall revenue as of December 31, 2024, was Rs.668,686 crore, up 8.31% year over year from ₹617,368 crore the previous year. The total deposits grew by 5.34%, from Rs.377,722 crore on December 31, 2023, to Rs.397,907 crore on December 31, 2024, a gain of Rs.20,185 crore.

As of December 31, 2024, gross advances increased by 12.99% to Rs.270,779 crore from Rs.239,646 crore in the previous year. The RAM (Retail, Agriculture & MSME) division of the bank experienced a 17.99% growth. Retail saw 16.18% (Rs.79,927 crore) increase, agriculture saw 14.83% (Rs.51,274 crore), and MSME saw 23.64% (Rs.58,102 crore).

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Government plans to sale stake in five PSU banks

A Rs.10,000 crore fund-raising plan for five state-run institutions via the Qualified Institutional Placement (QIP) route has been approved by the government.



According to sources, four additional lenders—Punjab & Sind Bank, Indian Overseas Bank, UCO Bank, and Central Bank of India—have been given permission to raise money in addition to the Bank of Maharashtra. According to the sources, these lenders may begin raising money in tiny installments as early as the fourth quarter of the 2025 fiscal year.

"The Department of Disinvestment and Public Asset Management (DIPAM) has also been mandated to sell a stake in these lenders through the Offer For Sale (OFS) route," the sources noted.



By August 2026, the government hopes to have a minimum of 25% of these PSU banks' shares held by the general people. The Department of Financial Services has administrative authority for state-run lenders.



According to the most recent shareholding pattern on the BSE, the government owns 79.6% of Bank of Maharashtra, 98.25% of Punjab & Sind Bank, 96.38% of Indian Overseas Bank, 95.39% of UCO Bank, and 93.08% of Central Bank of India as of the end of the December quarter.Based on the current share price, the excess government stake in these five lenders stands at nearly Rs.50,000 crore.

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Central Bank of India Q2 Net profit surges 51%

State-owned Central Bank of India on Thursday posted a 51 per cent jump in profit at ₹913 crore in the second quarter ended September 2024.

The lender had earned a net profit of ₹605 crore in the same quarter a year ago. Total income increased to ₹9,849 crore during the quarter under review, as against ₹8,412 crore in the same period last year, Central Bank of India said in a regulatory filing.

Net Interest Income increased to ₹3,410 crore in the latest July-September quarter as compared to ₹3,028 crore in the corresponding period a year ago.

The bank earned an interest income of ₹8,203 crore during the quarter, compared to ₹7,351 crore in the year-ago quarter.

Net Interest Margin (NIM) in the reporting quarter rose to 3.44 per cent from 3.29 per cent at the end of second quarter of previous fiscal.

Return on Assets (ROA) improved to 0.85 per cent, registering an improvement of 23 bps, over the corresponding quarter of last year.

The bank was able to reduce gross Non-Performing Assets (NPAs) to 4.59 per cent of the gross loans by the end of September 2024, from 4.62 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.69 per cent, from 1.64 per cent at the end of the second quarter of the previous fiscal.

Provision Coverage Ratio stood at 96.31 per cent, with an improvement of 377 bps year on year.

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Central Bank of India Q1 Profit rises 110%

Central Bank of India on July 18 reported a 110 percent on-year growth in its profit after tax to Rs 879.94 crore in the first quarter of the current financial year.

On sequential basis, net profit rises around 9 percent.

Gross non-performing asset (NPA) ratio of the bank improved a year basis to 4.54 percent as on June 30, as compared to 4.95 percent in a year ago period. However, on a quarterly basis, gross NPA ratio rose marginally. In a quarter ago period, it stood at 4.50 percent.

Net NPA ratio of the bank improved to 0.73 percent as on June 30, as compared to 1.23 percent as on March 31, and 1.75 percent as on June 30, 2023.

Provision Coverage Ratio improved to 96.17 percent, registering an improvement of 394 basis points (bps) over 92.23 percent.

The total business of the grew by 8.97 percent on-year to Rs 6.36 lakh crore in the reporting quarter, from Rs 5.84 lakh crore in a year ago period.

In April-June, total deposits of the rose by 5.93 percent to Rs 3.85 lakh crore from Rs 3.64 lakh crore in a year ago period. CASA Deposits have increased by Rs 8,772 crore to Rs 1.89 lakh crore from Rs 1.80 lakh crore,

reflecting YoY growth of 4.87 percent and having a share of 49.19 percent of total Deposits.

Gross Advance increased by 13.99 percent on-year to Rs 2.51 lakh crore in April-June from Rs 2.20 lakh crore in a similar period last year. Credit to Deposit (CD) Ratio improved to 65.27 percent registering an improvement of 452 bps, from 30th June 2023.

RAM (Retail, Agriculture & MSME) business grew by 18.81 percent. The individual sector wise growth stood at 13.87 percent (Rs 72,469 crore), 15.36 percent (Rs 47,080 core) and 30.20 percent (Rs 52,111 crore), respectively, for Retail, Agriculture & MSME.

Net Interest Income for June 30, 2024 quarter has increased to Rs 3548 crore as compared to Rs 3176 crore for corresponding quarter ended June 30, 2023.

Net Interest Margin (NIM) for the quarter is at 3.57 percent as at the end of June 30, 2024 when compared to 3.43 percent as at the end of June 30, 2023 quarter.

CRAR improved to 15.68 percent, of which Tier I is 13.36 percent, registering an improvement of 126 bps.

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Latest Bank Merger News : 4 PSU Banks likely to be merged

According to sources, the government has formulated its plan for the second round of merger of PSU banks. The government is considering two options for merging four small government banks. To facilitate the merger, changes are being prepared in the Banking Regulation Amendment Act. One option is to merge UCO Bank, Bank of Maharashtra, Punjab & Sind Bank, and Central Bank of India.

The second option involves merging with Union Bank of India, Canara Bank, or Indian Bank according to the banking software. 

The government aims to make these changes in the Banking Regulation Amendment Act to facilitate the merger process. 

The functioning of UCO Bank, Punjab & Sind Bank, Bank of Maharashtra, and Central Bank has shown improvement in the past few years. This is a developing story.

Let us tell you that the government has a 98.25 per cent stake in Punjab & Sind Bank.

While the government has a 93.08 per cent stake in Central Bank, 86.46 per cent in Bank of Maharashtra and a 95.39 per cent in UCO Bank.

The government had announced the merger of 10 public sector banks into four entities in 2019.

This was part of the government's policy to strengthen public sector banks (PSU Bank Mergers) to strengthen their finances for a strong national presence and global reach.

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Central Bank of India Q4 Profit jumps 41%

Central Bank of India on Tuesday reported a standalone a 41.38 per cent jump in standalone profit at Rs 807.34 crore for the fourth quarter of the financial year 2023-24 (Q4 FY24). The bank had reported a net profit of Rs 571.03 crore for the same period last year. Sequentially this was a 12.46 per cent increase from Rs 717.86 crore in Q3.

The bank reported standalone total income at Rs 9,698.74 crore for Q4. This is a 13.2 per cent increase from Rs 8,567.45 crore reported during the year-ago period. Quarter-on-quarter (Q-o-Q) total income rose 6.12 per cent from Rs 9,138.93 crore. 

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The gross non-performing assets (NPA) ratio of the bank remained at 4.50 per cent in Q4, same ratio reported in Q3. This was down 8.44 per cent compared to the same period last year, but the same as the quarter-ago period.

Net Interest Income (NII) increased by 10.34 per cent year-on-year (Y-o-Y) to Rs 12,896 crore for 12 months period that ended on March 31, over corresponding period of last year.

Return on Assets (ROA) improved to 0.76 per cent for Q4FY24 as against 0.61 per cent for Q4FY23. ROA improved to 0.63 per cent at the end of FY24, compared to 0.44  per cent at the end of FY23.

Return on Equity (ROE) also improved to 2.92 per cent for Q4FY24 as against 2.27 per cent for Q4FY23. For the entire financial year, ROE improved to 9.53 per cent over  6.42 per cent at the end of FY23.

For the entire financial year, Central Bank of India reported a standalone net profit of  Rs 2,549.06 crore, a 61.1 per cent surge, compared to Rs 1,582.2 crore reported at the end of FY23.

Total income went up 19.6 per cent at Rs 35,433.51 crore for FY24, compared to Rs 29,625.6 crore reported at end of last year.

Provision Coverage Ratio stood at 93.58 per cent, with an improvement of 110 bps, on Y-o-Y basis, the bank said.

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Central Bank of India Q3 Net profit surges 57%

 Public sector lender Central Bank of India on January 19 reported a net profit of Rs 717.9 crore for the October-December quarter of financial year 2023-24, posting an 56.7 percent rise from Rs 458.22 crore a year ago.

The bank's gross non-performing asset (NPA) stood at 4.50 percent, down from 8.85 percent recorded last year. On the other hand, net NPA for the quarter stood at 1.27 percent, improving from 2.09 percent on a year-on-year basis.

Central Bank of India's net interest income (NII) increased by 14.45 percent to Rs 9355 crore for 9 9-month period ended on December 31, 2023, over the corresponding period of last year.

However bank's Net Interest Margin (NIM) improved to 3.33 percent (6 bps, for 9 month period ended on December 31, 23, over the corresponding period of last year. Bank's total income (Interest Income plus Non-Interest Income) for Q3FY24 improved by 19.68 percent, from Rs 7636 crore in Q3FY23 to Rs 9139 crore in Q3FY24.

Central Bank of India has having pan India presence with network of 4494 branches with 65.29 percent (2934 branches) in rural & semi-urban areas, 4083 ATMs, and 11207 BC Points with total of 19784 Touch Points as of December 2023.

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This PSU Banks classified its loans of Rs 2,000 crore to Go First as NPA

 

Central Bank of India classified its loans to Go First as non-performing assets (NPAs) in the July-September quarter (second quarter, or Q2) of 2023-24 (FY24). The no-frills carrier has been under insolvency proceedings since May 2023 and ceased operating flights on May 3 this year.

The public sector lender’s exposure, including government-guaranteed emergency credit to the ailing airline, amounts to about Rs 2,000 crore.

Apart from Central Bank of India, another state-owned lender, Bank of Baroda, also has substantial exposure to Go First.

During an analyst call for Q2, Central Bank of India executives revealed that the bank had previously made provisions in the standard asset category for one big corporate account (Go First) due to anticipated issues (stress) in the future. With the corporate account now classified as NPA, the provision led to a write-back, resulting in a 100 per cent provision on that account.

In the April-June quarter of FY24, the bank paid tax on the provision (over Rs 600 crore) for this account, treating it as a standard asset. Now, with the provision amounting to nearly Rs 2,000 crore as an NPA, the bank experienced a write-back of Rs 43 crore, as disclosed by bank executives.

While the bank did not specify the exact extent of recovery expected from this account, executives stated that the account was sufficiently collateralised. They expressed confidence in the possibility of a successful recovery effort. Any recovery made will contribute to the bank’s bottom line, the executives said during the analyst call.

According to provisioning rules, this account is categorised as a sub-standard account, indicating that it has remained non-performing for less than or equal to 12 months.

Although the provisioning obligation for sub-standard accounts can be up to 25 per cent of the exposure, depending on the nature of the credit facility, Central Bank of India chose to make a full provision for airline accounts.

A bank executive said, “The bank aims to reduce net NPAs and improve overall asset quality profile, hence the provision made exceeds the requirement.”

Of the Rs 2,000 crore exposure, over Rs 600 crore is covered under the Emergency Credit Line Guarantee Scheme by the Government of India. The National Credit Guarantee Trustee Company, a government-owned entity, administers the scheme, providing emergency loan facilities to companies and micro, small and medium enterprises affected during the pandemic. The lender will file claims based on the prospects for resolution and recovery from proceedings under the Insolvency and Bankruptcy Code, 2016.

In recent developments, Naveen Jindal-led Jindal Power and Jettwings Airways, a Guwahati-based regional airline, have submitted expressions of interest for Go First.

Despite efforts by the resolution professional at Go First to revive the airline with limited flights, securing funding from lenders has proven challenging due to ongoing legal cases filed by the aircraft’s lessors.

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Central Bank of India Q2 results: Net profit jumps 90%

 

Public sector lender Central Bank of India on October 20, reported a net profit of Rs 605.4 crore for the July–September quarter of this fiscal year.

The bank's gross non-performing asset (GNPA) also improved to 4.62 percent from 4.95 percent Q1FY24. The lender's net NPA stood at 1.64 percent, improving from 1.75 percent in the last quarter.

Central Bank of India's total business grew by 11.51 percent to Rs 602284 crore (Q2FY24), vis-à-vis Rs 540130 (Q2FY23). However, total Deposits were up by 8.21 percent to Rs 371252 crore (Q2FY24), vis-à-vis Rs 343081 (Q2FY23).

Notably, the Provision Coverage Ratio (PCR) has improved to 92.54 (Q2FY24) from 89.20 (Q2FY23), registering an improvement of 334 bps.

The Operating Profit improved by 13.47 percent to Rs 3369 crore (as against, Rs 2969 crore Q2FY23), on half yearly basis, though it dipped marginally by 12.47 percent to Rs 1530 crore (as against, Rs 1748 crore Q2FY23), on quarterly basis, due to increasing in non-staff operating expenses.

Net Interest Income (NII) increased by 10.23 percent to Rs 3028 crore as against Rs 2747 crore Q2FY23. The same is increased by 26.90 percent to Rs 6204 crore (as against, Rs 4889 crore Q2FY23), on half yearly basis.

Net Interest Margin (NIM) improved to 3.53 percent as against 3.12 percent Q2FY23, 41 bps, on half yearly basis, though reduced marginally to 3.43 percent as against 3.44 percent Q2FY23, quarterly basis, due to increase in interest pay-out on deposits. Central Bank of India has a Bank network of 4489 branches with 65.22 percent (2928 branches) in rural & semi-urban areas, 4044 ATMs and 10962 BC Points with total 19495 Touch Points as on September ’23.

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Central Bank of India Q1 results: Net profit jumps

 

Public sector lender Central Bank of India on July 17 reported a net profit of Rs 418.4 crore for the April-June 2023 quarter, a jump from Rs 235 crore in the corresponding period last year.

The bank's gross non-performing asset (GNPA) also improved to 4.95 percent from 8.44 percent last year. The lender's net NPA stood at 1.75 percent, improving from 1.77 percent in the corresponding quarter last year. This is the on back of improvements in asset quality and increase in net interest margins of the bank.

The gross NPA of the bank in absolute terms fell to Rs 10,891 crore by end of June quarter, as against Rs 29,002 crore in the same quarter last year.

The net NPA, in absolute terms, stood at Rs 3,718 crore as on June 30, as compared to Rs 6,785 crore in the previous year.

The provision coverage ratio of the bank stood at 92.23 percent, which saw on improvement of 562 basis points on-year. One basis point is one hundredth of percentage point.

The net interest income (NII) grew by 48.27 percent to Rs 3,176 crore in Q1FY24 as against Rs 2,142 crore for Q1FY23, whereas, the total income (NII plus other Income) improved by 28.74 percent to Rs 8,184 crore from Rs 6,357 crore in the year-ago period.

The return on assets (ROA) improved to 0.43 percent during as against 0.27 percent in Q1FY23, and the return on equity (ROE) also improved to 1.63 percent for Q1FY24 as against 0.98 percent in the corresponding quarter of the last fiscal.

The total BASEL III Capital Adequacy Ratio improved to 14.42 percent in June 2023 as compared to 13.33 percent the same month last year. The Common Equity Tier 1 ratio came in at 12.13 percent in Q1FY24, registering an improvement of 109 bps.

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RBI imposes Rs 84.50 lakh penalty on this PSU Bank

 

RBI on Friday said it has imposed a penalty of Rs 84.50 lakh on Central Bank of India (the bank) for non-compliance with certain provisions of norms related to frauds classification and reporting. The Reserve Bank had conducted statutory inspection for supervisory evaluation of the bank with reference to its financial position as on March 31, 2021.

Examination of the reports revealed that the public sector lender had failed to report as fraud to RBI certain accounts within seven days of decision of Joint Lenders' Forum (JLF) to declare the accounts as fraud.

It had recovered SMS alert charges from its customers on flat basis rather than on actual usage basis.

The RBI had issued a notice to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the directions.

"After considering the bank's reply to the notice and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty...," the central bank said.

RBI, however, added the penalty is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

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Central Bank of India Q4 results: Net profit jumps 84%

 

Central Bank of India on April 29 reported an 84 percent surge in its net profit at Rs 571 crore for the quarter ended March 31, 2023. The lender had posted a profit of Rs 310 crore in the year-ago period.

On a sequential basis, the lender's profit grew 25 percent.

The bank's net interest income (NII) increased 45.35 percent on Y-o-Y basis to Rs 3,513 crore in Q4FY23 as against Rs 2,417 crore for Q4FY22. The same is up by 6.94 percent on a sequential basis.

Moreover, Central Bank of India said that its operating profit has shown a growth of 16.27 percent to Rs 2,108 crore for the quarter under review from Rs 1,813 crore in the last fiscal. The operating profit on sequential basis has improved by 16.65 percent.

Central Bank of India's asset quality improved in the March quarter. The gross non-performing asset came improved 640 basis points to 8.44 percent (YoY) while its net non-performing asset improved 220 basis to 1.77 percent (YoY).

The bank's provision coverage ratio stood at 92.48 percent (YoY), with an improvement of 579 basis points.

Sequentially, the bank's gross NPA stood at 8.44 percent against 8.85 percent in December quarter and its net NPA came at 1.77 percent against 2.09 percent.

In banking segment, the digital transaction count also registered a growth of 37.39 percent, in internet banking, mobile banking, IMPS and UPI transactions during FY 2022-23, against corresponding period of FY 2021-22.

Further, the lender's business per employee increased to Rs 18.70 crore as against Rs 17.52 crore for the same period of preceding year

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Central Bank of India Q1 Result: Net profit rises 14.2 %

  

Central Bank of India on Monday reported a 14.2 per cent rise in standalone net profit at Rs 234.78 crore in first quarter ended June this fiscal on fall in bad loans, even as its expenses increased. The State-owned lender had posted a net profit of Rs 205.58 crore in the same quarter a year ago.

However, compared sequentially, the profit was down by 24.3 per cent from Rs 310.31 crore in the quarter ended March 2022.

Total income during April-June period of 2022-23 increased slightly at Rs 6,357.48 crore, as against Rs 6,299.63 crore in the same quarter of 2021-22, Central Bank of India said in a regulatory filing.

Total income was down from Rs 6,419.58 crore in the March 2022 quarter.

Bank's bad loans proportions remained high, but fell to 14.90 per cent of the gross advances by the end of June 30, 2022, as compared to 15.92 per cent in the year-ago period.

In value-terms, the gross NPAs were worth Rs 29,001.63 crore, up from Rs 27,891.70 crore by June 2021.

Net NPAs or bad loans were trimmed to 3.93 per cent (Rs 6,784.70 crore), from 5.09 per cent (Rs 7,904.03 crore).

However, bank's provisions (other than tax) and contingencies for Q1FY23 were kept higher at Rs 913.67 crore from Rs 610.64 crore put aside for June 2021 quarter. However, it fell quarter-on-quarter from Rs 1,061 crore for three months to March 2022.

On a consolidated basis, the bank's net profit grew by 17.6 per cent in the reported quarter to Rs 243.52 crore, from Rs 207.15 crore in the year-ago period.

Total income during Q1FY23 rose only marginally to Rs 6,387.24 crore, as against Rs 6,323.23 crore.

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Privatisation Of Bank: Two banks to be sold in the country, centre to speed up law change process

 

The Centre speed up the process of privatising two State-owned banks. News agency PTI quoted a source from the Centre as saying on Wednesday. The Modi government at the Centre had earlier amended the 'Banking Regulation Act' to pave the way for private investment in State-owned banks. According to sources, the Centre wants to pass a bill in this regard in the upcoming monsoon session of Parliament.

Union Finance Minister Nirmala Sitharaman had said last year that the Centre wants to start the process of privatising some state-owned banks. Therefore, the Bank Nationalization Acts of 1970 and 1980 will be amended and the Bank Control Act of 1949 will be amended. According to finance ministry sources, the process has begun. The government has also started preparing the draft of the 'Banking Regulation Act'. If all goes well, the amendment will be passed in the monsoon session. Of course, there is a good chance of the opposition being hindered. However, due to the majority, the government should not have any problem in passing this law.

The amendment has been passed in parliament and there will be no bar on the privatization of State-owned banks. Only then will the process of privatization of state-owned banks begin. Initially, two state-owned banks have also been listed for disinvestment. The name of which two banks will be privatised is yet to be announced by the Centre. According to sources, the Modi government initially chose four medium-sized banks for privatisation. The four banks that were placed in the initial list for privatisation are Bank of Maharashtra (BoM), Bank of India (BoI), Indian Overseas Bank(IOB) and Central Bank of India. Later, niti aayog proposed that most of the shares of Indian Overseas Bank and Central Bank of India be sold. The Modi government can go ahead with the NITI Aayog's proposal.

This is not the end of it, the government also wants to complete the privatization process of the tate-owned company BPCL quickly. Sources claim that only 52.3 per cent stake in BPCL held by the Centre will be sold. Earlier, the Modi government had taken the initiative to sell the shares of BPCL. Initially three companies showed interest in buying bpcl shares. But in the end, only one company survives in the race, the sources claim.

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