Central Bank trades flat post appointment of new Chief Risk Officer

Shares of Central Bank of India dropped nearly 1 percent in trade on August 3, post the appointment of a new Chief Risk Officer. At 12:09 pm, the Central Bank stock was trading 0.97 percent lower at Rs 29.85 on BSE.

Bhaskar Gorugantu has been appointed as Chief Risk Officer of the public sector lender with effect from August 3. Ashwini Kumar Shukla is ceased to be the Chief Risk Officer of the bank with effect from August 2 on completion of his tenure.

Central Bank of India Q1 results and other developments 

Public sector lender Central Bank of India on July 17 reported a net profit of Rs 418.4 crore for the April-June 2023 quarter, a jump from Rs 235 crore in the corresponding period last year. The bank’s gross non-performing asset (GNPA) also improved to 4.95 percent from 8.44 percent last year. The lender’s net NPA stood at 1.75 percent, improving from 1.77 percent in the corresponding quarter last year. This is the on back of improvements in asset quality and increase in net interest margins of the bank.

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The gross NPA of the bank in absolute terms fell to Rs 10,891 crore by end of June quarter, as against Rs 29,002 crore in the same quarter last year. The net NPA, in absolute terms, stood at Rs 3,718 crore as on June 30, as compared to Rs 6,785 crore in the previous year.

The provision coverage ratio of the bank stood at 92.23 percent, which saw on improvement of 562 basis points on-year. One basis point is one hundredth of percentage point.

The net interest income (NII) grew by 48.27 percent to Rs 3,176 crore in Q1FY24 as against Rs 2,142 crore for Q1FY23, whereas the total income (NII plus other Income) improved by 28.74 percent to Rs 8,184 crore from Rs 6,357 crore in the year-ago period.

The return on assets (ROA) improved to 0.43 percent during as against 0.27 percent in Q1FY23, and the return on equity (ROE) also improved to 1.63 percent for Q1FY24 as against 0.98 percent in the corresponding quarter of the last fiscal.

Capital Adequacy

The total BASEL III Capital Adequacy Ratio improved to 14.42 percent in June 2023 as compared to 13.33 percent the same month last year. The Common Equity Tier 1 ratio came in at 12.13 percent in Q1FY24, registering an improvement of 109 bps.

Stock Performance

Central Bank of India stock has given a return of 7.18 percent over the last six months. The stock has hence slightly underperformed the benchmark Nifty Bank which has given a return of 8.97 percent over the same duration.

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