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Central Bank of India Q4 net loss at Rs 2,477 crore

FE Bureau
Central Bank of India Q4 net loss at Rs 2,477 crore

Central Bank of India on Wednesday reported a net loss of `2,477 crore in the March quarter of FY19, owing to a high provisioning burden of Rs 4,734 crore. In its notes to accounts, the bank said that it had to make additional provisions of `1,142 crore during the quarter as the Reserve Bank of India (RBI) identified divergences in asset classification at the bank and made it recognise additional gross non-performing assets (NPAs) worth `636 crore for the year ended March 31, 2018.

The bank reported a total income of `6,621 crore, up 5% year-on-year (y-o-y). Net interest income stood at `1,602 crore, up 7% y-o-y. The bank turned in a mixed show in terms of asset quality, with provisions remaining high even as NPA ratios improved. Gross NPAs as a percentage of total advances fell 135 basis points (bps) on a sequential basis to 19.29% and the net NPA ratio decreased 259 bps to 7.73%. In absolute terms, GNPAs stood at `32,356 crore, down 15% y-o-y, while net NPAs stood at `11,333 crore in Q4FY19.

The bank has not recognised as NPA loans to the micro, small and medium enterprises (MSMEs) worth `242 crore following a June 2018 dispensation offered by the RBI, which allows banks to not recognise unrealised interest on some accounts and maintain standard-asset provisioning against them. Central Bank has provided `12 crore as standard-asset provisions for such accounts. Under the RBI s January 2019 circular on restructuring of stressed MSME accounts, Central Bank has restructured 1,202 accounts worth a total exposure of `97 crore. The provisioning coverage ratio of the bank was 76.86% at the end of March 2019.