- Total Business Growth: 8.31%, now at ₹6.68 lakh crore.
- Total Deposits Growth: 5.34%, now at ₹3.97 lakh crore.
- CASA Growth: 5.72%, with a share of 49.18% of total deposits.
- Gross Advances Growth: 12.99%, now at ₹2.70 lakh crore.
- Credit Deposit Ratio: Improved to 68.25% from 63.60% in December 2023.
- Gross NPA: Reduced to 3.86% from 4.50% in December 2023.
- Net NPA: Reduced to 0.59% from 1.27% in December 2023.
- Provision Coverage Ratio: Improved to 96.54% from 93.73%.
- Net Profit: ₹959 crore for the quarter, highest in 15 quarters.
- Net Interest Margin (NIM): 3.48%, up 20 basis points from the previous year.
- Return on Assets (ROA): Increased to 0.87%, up 18 basis points.
- Return on Equity (ROE): 12.96%.
- Capital Adequacy Ratio (CAR): Improved to 16.43% from 14.74% in December 2023.
- Total Interest Income Growth: 8.98% year-on-year.
- Net Interest Income Growth: 12.31% year-on-year, now at ₹3,540 crore.
- Operating Profit Growth: 1.66%, now at ₹2,963 crore.
- Interest on Advances Growth: 10.06%, now at ₹5,006 crore.
- Interest on Investment Growth: 10.26%, now at ₹2,590 crore.
- Total Income Growth: 8.98%, now at ₹8,510 crore.
- Total Provisions: ₹1,004 crore, reduced by 17.23% year-on-year.
- Liquidity Coverage Ratio: 233.60%.
- Net Stable Funding Ratio: 140.44%.
Release Date: January 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Central Bank of India (BOM:532885, Financial) reported a significant growth in net profit, achieving the highest quarterly net profit in 15 quarters at 959 crores.
- The bank's net interest margin (NIM) improved to 3.48%, up by 20 basis points from the previous year.
- Gross advances increased by 12.99%, indicating strong credit growth.
- The provision coverage ratio improved to 96.54%, reflecting better risk management.
- The bank's CASA ratio remains strong at 49.18%, supported by a robust rural and semi-urban network.
Negative Points
- The cost-to-income ratio remains high at 58%, above the targeted guidance of 50-52%.
- Non-interest income saw a slight decline year-on-year, primarily due to lower recovery rates.
- The bank's deposit growth was relatively weak at 5.34% year-on-year.
- There are concerns about potential pressure on retail loan growth due to increased competition and new regulatory norms.
- The bank's return on assets (ROA) is still below 1%, although it has improved to 0.87%.
Q & A Highlights
Q: How does Central Bank of India view growth prospects in the coming quarters, given the current market conditions?
A: Matam Rao, CEO, stated that the bank is confident in achieving its previously set growth targets. The bank expects business growth of 10-12%, advances growth of 14-15%, and deposit growth of 8-10% for FY25. The bank has already surpassed the previous year's net profit and does not foresee any hurdles in achieving its financial goals.
Q: What is the status of the bank's recovery efforts, particularly concerning a large aviation account?
A: Matam Rao mentioned that while overall recovery targets are being met, significant recovery from the large aviation account is not expected within the current quarter. However, progress is anticipated in the first half of the next financial year.
Q: How is the bank managing its retail loan growth amid new RBI norms and increased competition?
A: Matam Rao explained that the bank sees ample opportunities in the market and focuses on balancing interest rates with the quality of advances. The bank's personal loan portfolio is limited to salaried employees with salary accounts at the bank, minimizing concerns over delinquencies.
Q: Can you provide insights into the bank's digital transformation efforts and the impact on consumer banking?
A: Matam Rao highlighted the launch of a new Super app offering over 200 services, including investments, insurance, and fund transfers. The app is part of the bank's strategy to enhance its digital platform and improve customer service, aiming to strengthen its position as a consumer bank.
Q: What are the bank's plans regarding equity dilution and capital generation?
A: Matam Rao indicated that while the bank is hopeful for positive news regarding equity dilution, it may consider a small QIP as a gesture of intent. The bank's balance sheet is strong, and future growth capital is expected to be self-generating within the organization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
