Central Bank Of India Posts Its Q1FY14 Result

Central Bank Of India (CBOI), announced its Q1FY14 results yesterday (July 25, 2013). On the revenue front, the bank showed growth of 10% to Rs 5846 crore, mainly due to a rise in revenues from interest on advances (grew by Rs 408 crore). The major sources of income for the company are interest earned from advances, income on investment and interest on balance with the RBI. Its other income plunged by 85% to Rs 598 crore in Q1Fy14 against the corresponding quarter of the last fiscal.

The bank's operating expenses increased by 13% and reached Rs 5443 crore during Q1FY14 on a YoY basis. The major rise was due to an increase in interest expenses by CBOI, which rose by Rs 382 crore. Further, both employee expenses and other expenses grew by 25% to Rs 801 crore and Rs 335 crore respectively.

Moreover, CBOI's EBITDA jumped to Rs 1000.57 crore by showing growth of 26%. However, if we consider the total operating income excluding the other income, it would have reported a decline of 14% over the last fiscal’s corresponding period income.

Further, in the quarter under review, the bank increased its provisions & contingencies by 179% (to Rs 983 crore), which pulled down the net profit by 93%. The bottomline for CBOI stood at Rs 336 crore in Q1FY13.

The gross non-performing assets (NPAs) and net NPAs for the bank extended by 116 basis points and 63 basis points to 6.03% and 3.85% respectively.