Central Bank of India has reported 65.8% slump in net profit at Rs 61.53 crore for the third quarter ended December 31, 2013-14. It had reported net profit of Rs 179.94 crore in the October-December quarter 2012-13.
During the quarter, the bank saw an increase in tax and employee expenses. The bank paid Rs.150 crore as tax expense in the quarter ended December after writing back Rs. 29 crore in December 2012 and employee expenses rose to Rs. 866 crore from Rs. 665 crore in 2012.
The bank incurred tax expense of Rs 149.6 crore during the quarter compared to Rs 28.7 crore tax write-back in the corresponding period of last year. “Total income has increased from Rs 5818.81 cr for the quarter ended December 31, 2012 to Rs 6708.5 cr for the quarter ended December 31, 2013,” the bank said in a regulatory filing to the BSE. It said that with effect from July 1, 2013 the recovery in the Non-Performing Assets (NPAs) is appropriated towards principal against interest income earlier. “The impact on financial results due to this change is that interest income for the quarter and for nine months period ended December 2013 is approximately less by Rs 42.86 crore and Rs 86.52 crore respectively,” it said.
Bank’s net NPAs during the quarter declined to 3.69% from 3.79%. However, gross NPAs were higher at 6.48% from 5.64% a year ago.