Central Bank of India conducted a conference call on 17 July 2023 to discuss its financial results for the quarter ended June 2023. MV Rao, MD and CEO of the bank addressed the call:

Highlights:

The bank has continued to record it profit for the 9th street Q1FY24

GNPA has reduced to 4.95 and net NPA 1.75% end June 2003. Provision coverage ratio is strong at 92.23% end June 2023.

The capital adequacy ratio of the bank stood at 14.42% end June 2023.

The bank has improved NIM to 3.62% in Q1FY2024 from 2.88% in Q1FY23.

The yield on advances has improved 195 bps yoy to 8.29% and yield on investment 37 bps yoy to 6.50%, while the cost of fund has also moved up 52 bps yoy to 4.42% in Q1FY24.

The credit cost has declined to 0.45% in Q1FY24 from 1.78% in Q1FY23.

The RoA has improved to 0.43% in Q1FY24 from 0.27% in Q1FY23.

The tax provisions were elevated as no DTA can be created on standard asset provisions.

SMA book up of the bank has increased in Q1FY24 due to one account from the aviation sector.  The exposure to the account stands at Rs 1930 crore, of which Rs 620 crore is guaranteed, while the bank do not expects any loss.

The exposure under ELCGS stands at Rs 2932 crore against overall disbursements of Rs 6900 crore. The SMA book under ECLGS stands at Rs 1257 crore. The book is guaranteed by the government.

The co lending loan book has expanded to Rs 7178 crore end June 2023, of which SMA book stands at Rs 218 crore and NPA is Rs 279 crore.

The bank is targeting loan growth of 20-25% in the housing segment.

The credit cost is expected to be below 1% for FY2024.

The RoE was at 6.42% for FY23 and target is to improve to 7-8% for FY24.

The restructured loan book of the bank is at Rs 6400 crore of which covid related restructured loan book stands at Rs 4447 crore.