Central Bank of India Q3 Results: PAT Up 56.77% To Rs 718 Cr; NII Plunges 4.04%

Central Bank of India, a public sector lender, released its financial results for the third quarter and nine months that ended on December 31, 2023. The bank's net profit jumped from Rs 458 crore in Q3FY23 to Rs 718 crore in Q3FY24, a 56.77% growth. From Rs 7636 crore in Q3FY23 to Rs 9139 crore in Q3FY24, its total income climbed by 19.68%.

Central Bank of India said it is maintaining adequate liquidity and the Liquidity Coverage Ratio (LCR) stands at 231.92 %, as against 289.57% in the same period of the preceding year & 236.58 % in the immediate preceding quarter.

The Return on Equity (ROE) improved to 2.67 per cent for Q3FY24 compared to 1.86 per cent for Q3FY23, and the Central Bank of India said that its Return on Assets (ROA) rose to 0.69% for Q3FY24 from 0.50% for Q3FY23. Net Interest Income (NII) for the bank dropped by 4.04 per cent year on year to Rs 3152 crore in Q3FY24 from Rs 3285 crore in Q3FY23. With the exception of one exceptional item, NII increased from Rs 3042 crore in Q3FY23 to Rs 3125 crore in Q3FY24, or 3.73%.

As of December 31, 2023, the bank's total business was valued at Rs 617368 crore, up from Rs 553768 crore, or 11.48 per cent, year on year. On a year-on-year basis, gross advance climbed by 14.71% to Rs 239646 crore, from Rs 208921 crore during the same period the previous year, while total deposits jumped by 9.53% to Rs 377722 crore. According to the bank, its net advance grew from Rs 194492 crore during the same quarter last year to Rs 231815 crore on a year-on-year basis. This represents a 19.19% rise.

According to the bank, Net NPA climbed to 1.27% with an improvement of 82 basis points and Gross NPA grew to 4.50% with a 435 basis point improvement year on year. On a YoY basis, the provision coverage ratio improved by 201 basis points to 93.73%. According to the bank, its total BASEL III Capital Adequacy Ratio increased by 98 basis points to 14.74 percent as of December 2023 (with a Common Equity Tier 1 ratio of 12.17 percent) from 14.12 percent recorded in Q3FY23.

RAM's business (Retail, Agriculture & MSME) expanded by 15.34%. Retail, agriculture, and MSME saw the highest individual sector growth rates, at 14.11% (Rs 68797 crore), 9.87% (Rs 44654 core), and 23.08% (Rs 46994 crore), respectively. According to the bank, during Q3FY24, its business per employee climbed to Rs 19.27 crore from Rs 17.67 crore during the same period the previous year.

With a network of 4494 branches-of which 65.29 percent (2934 branches) are located in rural and semi-urban areas-4083 ATMs, 11207 BC Points, and a total of 19784 touch points as of December 23, the bank maintains a pan India presence during the quarter under review.