Central Bank of India posts net loss at Rs 105 cr in Q4

Public sector lender Central Bank of India has posted a net loss at Rs 105 crore for the January-March quarter of 2012 as against profit of Rs 133 crore in a year ago period due to spike in non-performing assets (NPAs).

Gross NPAs increased at 4.83% in the March quarter as against 3.69% in December quarter. Gross NPAs stood at Rs 7,273 crore versus Rs 4,922 crore during the same period. Net NPAs too jumped at 3.09% versus 2.04% quarter-on-quarter.

Central Bank made provisions of Rs 859 crore for the fourth quarter of FY12, a significant increase as compared to Rs 306 crore in the corresponding quarter of last fiscal due to restructured assets.

Net interest income of the bank too declined 11.5% to Rs 1,264 crore from Rs 1,428 crore year-on-year.

Capital adequacy ratio improved at 12.40% versus 11.64% during the same period.

The bank has decided to pay a dividend of Rs 2 a share.

The stock tanked 12% to close at Rs 77.55 amid heavy volumes. Traded volumes jumped 2,290% to 17,83,239 shares as compared to its 5-day average of 74,592 shares.

However, the bank expects to return to strong earnings in FY13

In a press conference, the management said high slippages seen due to some corporate accounts. Slippages in the fourth quarter stood at Rs 3,300 crore.

Source: www.moneycontrol.com

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