Last Updated on October 30, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
The Central Bank of India (CBI) was founded in 1911 and was the first commercial bank in the country wholly owned and managed by Indians. The entity has existed for over a century and has been playing a pivotal role in promoting vital thrust areas, including agriculture and small-scale, medium, and large industries. Additionally, CBI boasts 4,493 branches, 1 extension counter, and 10 satellite offices across the country, making it a truly ‘All India’ bank.
For the second quarter of the fiscal year, the state-owned bank reported a staggering 90.25% YoY increase in its net profit, clocking ₹605.43 Cr during the period under review. Here are the key highlights of the entity’s performance during Q2 of FY 2023-24.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights
- Central Bank of India reported an impressive 90.25% YoY increase in its net profit at ₹605.43 Cr compared to ₹318.17 Cr in Q2 FY 2022-23.
- The entity’s total income for the quarter under review rose to ₹8,411.92 Cr against ₹7,064.96 Cr during the corresponding period last year.
- CBI’s gross non-performing asset (NPA) improved to 4.62% during the quarter from 9.67% during Q2 FY 2022-23, showing an improvement of 505 bps.
- The net NPA improved to 1.64% during the second quarter (FY 2023-24) from 2.95% during the same period last year, registering an improvement of 131 bps.
- The bank’s interest income during Q2 FY 2023-24 increased to ₹7,350.66 Cr compared to ₹6,154.95 Cr during the same period last year.
- The Net Interest Income (NII) also rose 10.23% YoY to ₹3,028 Cr compared to ₹2,747 Cr during Q2 FY 2023-24.
Central Bank of India’s profit during the second quarter was fuelled by robust growth of core income and a dip in the number of bad loans. CBI announced in a regulatory filing that its total income for Q2 FY 2023-24 increased to ₹8,411.92 Cr from ₹7,064.96 Cr during the same period the previous year.
With a decline in the number of bad loans (non-performing assets), the provision and contingencies fell to ₹968.24 Cr compared to ₹1,124.40 Cr during Q2 of FY 2022-23.
The bank’s net interest margin surged to 3.53% compared to 3.12% last year (Q2 of FY 2022-23). At the same time, the Provision Coverage Ratio increased to 92.54 during Q2 FY 2023-24 from 89.20 during Q2 FY 2022-23, registering an improvement of 334 bps.
The entity’s total business rose 11.51% to ₹6,02,284 Cr compared to ₹5,40,130 Cr in the same period last year.
The operating profit also improved by 13.47% YoY to ₹3,369 Cr, compared to ₹2,969 Cr during the corresponding period of the previous year. However, on a half-yearly basis, the operating profit dipped marginally by 12.47% to ₹1,530 Cr because of an increase in non-staff operating expenses.
Central Bank of India: H1 Standalone Financial Figures (YoY)
| Particulars | H1 FY 2022-23 | H1 FY 2023-24 |
| Interest Income | ₹11,681.48 Cr | ₹14,575.94 Cr |
| Total Income | ₹13,422.44 Cr | ₹16,595.84 Cr |
| Total Expenditure | ₹10,453.34 Cr | ₹13,227.52 Cr |
| Operating Profit | ₹2,969.10 Cr | ₹3,368.32 Cr |
| Net Profit | ₹552.95 Cr | ₹1,023.86 Cr |
Also Read: Central Bank of India Share Price
Central Bank of India: Standalone Financial Fiagures (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Interest Income | ₹7,225.28 Cr | ₹7,350.66 Cr |
| Total Income | ₹8,183.92 Cr | ₹8,411.92 Cr |
| Total Expenditure | ₹6,346.04 Cr | ₹6,881.48 Cr |
| Operating Profit | ₹1,837.88 Cr | ₹1,530.44 Cr |
| Net Profit | ₹418.43 Cr | ₹605.43 Cr |
Key Analytical Ratios (QoQ)
| Particulars | Q1 FY 2023-24 | Q2 FY 2023-24 |
| Return on Assets (ROA) (Annualised) | 0.43% | 0.62% |
| Debt* Equity Ratio | 0.19 | 0.22 |
| Total Debt** to Total Assets (%) | 2.41% | 3.96% |
| Operating Margin (%) | 22.46% | 18.19% |
| Net Profit Margin (%) | 5.11% | 7.20% |
* This depicts borrowings with residual maturity of more than one year
** Total Debt and Outstanding Debt depict the total borrowings of the Bank
Stock Performance Of Central Bank of India
Central Bank of India announced its quarterly results (Q2 FY 2023-24) after the market closed on October 20th. The shares opened at ₹47 on Friday and fell by 0.32% to close at ₹46.85 on BSE.
About the Company
The Central Bank of India (CBI) was established in 1911, and today, the entity has a presence in 27 states and 4 union territories across the country. In the year 2008, CBI entered into a distribution tie-up with Kotak Mahindra Asset Management Company. Central Bank of India has also signed an MoU with WMG, an Academic Department of the University of Warwick. This facilitates several benefits, such as the provision of fast-track loans for students from the country studying at WMG and building relationships between UK and Indian businesses.
Sources:
https://centralbankofindia.co.in/sites/default/files/Outcome_20102023_20102023173500.pdf
https://centralbankofindia.co.in/sites/default/files/pressrelease/PRESS-RELEASE.pdf
