Central Bank of India posts Record Profit of Rs 912.84 Crore for Q2 FY2024, Download Quarterly Result Sep 2024
Central Bank of India, a major public sector lender, has reported impressive financial results for the second quarter ending September 2024, marking a notable increase in profitability. The bank’s Profit After Tax (PAT) soared to ₹912.84 crore, its highest in recent quarters, reflecting a solid financial performance.
This PAT figure represents a 21.3% growth compared to the average PAT of ₹752.64 crore over the past four quarters. The surge in profitability underscores the bank’s robust business strategy and its ability to generate higher earnings, as reflected in its Earnings Per Share (EPS), which rose to ₹1.05, the highest in five quarters.
Another highlight of the report is the continued improvement in asset quality. The bank’s Net Non-Performing Assets (NPA) have consistently decreased over the last five quarters, signaling tighter control over stressed loans. This reduction in NPAs has contributed to the bank’s overall financial health.
Central Bank of India also reported a Capital Adequacy Ratio (CAR) of 16.27%, the highest in the last five quarters, indicating a stronger capital base relative to its risk assets. However, analysts have noted that the bank’s conservative approach to lending could limit future growth in its loan book.
One area of concern in the bank’s financials is its high reliance on non-operating income. For the quarter, non-operating income made up 105.09% of the bank’s Profit Before Tax (PBT), raising questions about the sustainability of such income sources. The bank reported non-operating income of ₹1,646.70 crore, its highest in five quarters, largely driven by gains from non-core activities.
Despite these concerns, Central Bank of India’s overall performance remains positive, with strong profitability and improved asset quality. The bank’s management is confident in maintaining this momentum, although it may need to balance its reliance on non-operating income for sustained long-term growth.
