Central Bank of India has announced its financial results for the second quarter of fiscal year 2025, reporting significant growth in both revenue and profitability. The bank posted a net profit of ₹918.24 crore for Q2 FY25, marking a robust increase compared to ₹605.43 crore in the same period last year. The bank’s total income also saw a rise, driven by higher interest income and other operating efficiencies.
Key Financial Highlights:
- Total Income: Central Bank of India’s total income for Q2 FY25 was ₹8,944 crore, a notable increase from ₹8,414.29 crore in Q2 FY24.
- Interest Earned: ₹8,020.26 crore, compared to ₹7,355.06 crore in Q2 FY24.
- Other Income: ₹1,674.70 crore, up from ₹1,062.26 crore in Q2 FY24.
- Net Profit: The bank’s net profit surged to ₹918.24 crore, compared to ₹605.43 crore in the corresponding quarter last year, showing an impressive growth.
- Operating Expenses: The total operating expenses for the quarter stood at ₹2,879.25 crore, up from ₹2,525.81 crore in Q2 FY24, reflecting investments in operations to drive growth.
- Interest Expended: ₹4,879.24 crore, up from ₹4,352.97 crore in Q2 FY24.
Asset Quality:
- Gross NPA: Gross Non-Performing Assets (NPA) amounted to ₹11,605.42 crore, down from ₹13,874.21 crore in Q2 FY24, indicating improvement in the bank’s asset quality.
- Net NPA: Net NPA reduced to ₹1,673.97 crore, compared to ₹3,662.42 crore in Q2 FY24, showing the bank’s focus on improving asset quality.
- Gross NPA Percentage: The Gross NPA as a percentage of total advances stood at 4.59%, compared to 4.62% in the previous quarter.
- Net NPA Percentage: Net NPA as a percentage of total advances dropped to 0.65%, down from 1.74% YoY.
Capital Adequacy:
- Capital Adequacy Ratio (CAR): The bank’s CAR under Basel III stood at 16.27%, up from 14.82% in Q2 FY24, reflecting a strong capital position.
- Tier I Ratio: The Tier I ratio was 14.01%, showing a solid capital buffer.
Return on Assets (ROA):
- ROA: The return on assets improved to 0.65%, compared to 0.37% in Q2 FY24, indicating enhanced profitability.
Earnings Per Share (EPS):
- Basic EPS: The basic Earnings Per Share (EPS) for Q2 FY25 was ₹1.05, compared to ₹0.70 in Q2 FY24.
Additional Metrics:
- Net Profit Margin: The net profit margin stood at 10.26%, showing improvement from 7.20% in the same period last year.
- Operating Margin: The operating margin was recorded at 21.91%, reflecting efficient management of operational costs.
Conclusion:
Central Bank of India has delivered a strong financial performance in Q2 FY25, driven by growth in both interest and non-interest income. The significant improvement in asset quality, reflected by a reduction in gross and net NPAs, along with a strong capital position, indicates the bank’s robust operational framework. With consistent growth in net profit and enhanced return on assets, the bank is well-positioned for sustained financial stability in the upcoming quarters.
