InvestorQ : How did Central Bank of India managed to report improved profits for Jun-20 quarter?
Mary Joseph made post

How did Central Bank of India managed to report improved profits for Jun-20 quarter?

Answer
user profile image
sara Kunju answered.
2 months ago


Even as banks have remained under pressure, PSB Central bank of India reported a robust 21% growth in net profits at Rs.147 crore for the Jun-20 quarter. Even the total income of CBI was up, albeit marginally, by 4% at Rs.6752 crore.

However, it must be remembered that this performance comes in the midst of extremely tough operating conditions for the bank. The lockdown and the reduced staffing created some genuine challenges for the operating performance of the bank.

During the quarter, the gross NPAs of Central Bank of India showed a marginal improvement from 19.93% last year to 18.10%. However, the absolute level of NPAs still remains too high to be sustainable for the bank in the long run.

For the Jun-20 quarter, the net NPA of the bank was also down from 7.98% to 6.76% on a YOY basis. During the quarter, the bank reported sharply lower provisioning for doubtful assets and that was instrumental in boosting profits for the bank.