On Monday, the government-owned Central Bank of India announced a standalone net profit of 310 crore for the quarter ended March 2022, owing to lower provisioning for bad loans. In the same quarter a year before, the lender had a net loss of 1,349 crore.
The Central Bank of India reported in a regulatory filing that total income in Q4 FY22 increased to 6,419.58 crore from 5,729.38 crore in the same quarter of FY21.
The bank saw a turnaround in fiscal year 2021-22, posting a net profit of 1,045 crore. In 2020-21, it reported a net loss of 888 crore. The total revenue for the year increased to 25,770.13 crore, up from 25,845.90 crore in FY21.
At the end of March 2022, the lender improved its asset quality and reduced gross non-performing assets (NPAs) to 14.84 percent of gross advances, down from 16.55 percent the previous year.
Net nonperforming assets, or bad loans, declined from 5.77 percent to 3.97 percent. Bad loan percentage decreased dramatically in Q4FY22, falling to 1,061 crore from 3,080 crore in the previous quarter. Provisioning for contingencies was cut to 3,480 crore for the whole year, down from 5,902 crore.
The bank’s total business climbed to 5,32,404 crore from 5,06,886 crore, representing a 5.03 percent increase year over year.
Total deposits climbed by 12,719 crore to 3,42,692 crore as of March 31, 2022, up from 3,29,973 crore, representing a 3.85 percent rise, according to the lender.
The credit cost for FY22 fell from 2.95 percent to 1.41 percent, a decrease of 154 basis points (bps) year over year. On the BSE, the stock of the Central Bank of India was trading at 18.10 per share, down 1.63 percent from the previous close.