Central Bank of India has reported a substantial improvement in its asset quality for the second quarter of fiscal year 2025. The bank’s Gross Non-Performing Assets (GNPA) and Net Non-Performing Assets (NNPA) have both decreased, reflecting its ongoing efforts to manage and reduce non-performing loans.

Key Highlights on Asset Quality:

  • Gross NPA (GNPA):
    Central Bank of India’s GNPA stood at ₹11,605.42 crore as of September 30, 2024, marking a significant improvement from ₹13,874.21 crore reported in the same quarter last year (Q2 FY24). This represents a 16.4% YoY decline, showcasing the bank’s progress in managing stressed assets.

    • GNPA as a Percentage of Advances:
      The GNPA ratio was reduced to 4.59% in Q2 FY25, down from 4.62% in the previous quarter (Q1 FY25) and 5.36% in Q2 FY24.
  • Net NPA (NNPA):
    The bank’s NNPA also saw a sharp decline, standing at ₹1,673.97 crore for Q2 FY25, down from ₹3,662.42 crore in Q2 FY24. This represents a 54.3% YoY reduction, indicating the bank’s success in recovering bad loans and improving asset quality.

    • NNPA as a Percentage of Advances:
      The NNPA ratio dropped to 0.65% in Q2 FY25, compared to 0.70% in Q1 FY25 and 1.29% in Q2 FY24, showcasing a continued reduction in non-performing loans.

Quarter-over-Quarter Improvement:

On a Quarter-over-Quarter (QoQ) basis, the bank reported improvements in both GNPA and NNPA figures:

  • GNPA: Decreased by 14.6%, from ₹13,587.61 crore in Q1 FY25 to ₹11,605.42 crore in Q2 FY25.
  • NNPA: Declined by 2.21%, from ₹1,711.71 crore in Q1 FY25 to ₹1,673.97 crore in Q2 FY25.

The reduction in both GNPA and NNPA is a positive sign for Central Bank of India, indicating better management of its non-performing loans and improved asset quality. The YoY reduction in GNPA by 16.4% and NNPA by 54.3% reflects the bank’s focus on maintaining financial discipline and addressing bad loans effectively.

These improvements have also contributed to strengthening the bank’s overall financial performance, positioning it well for future growth with a healthier balance sheet. Central Bank of India’s continued efforts to control and reduce NPAs will be crucial in sustaining this positive trend in the coming quarters.

Follow on Google News