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Central Bank
of India conducted a conference call on 19 January 2024 to discuss its
financial results for the quarter ended December 2023. MV Rao, MD and CEO of
the bank addressed the call:
Highlights:
The
bank has recorded business growth of 11.49% end December 2023 against the
target of 10 to 12%. The deposit growth was at 9.53% against the guidance of 8
to 9%. The loan growth was at 14.7% against the guidance of 14 to 15%.
The CASA
deposit ratio of the bank remained strong at 49%.
The share
of retail, agriculture and MSME (RAM) loan book was strong at 67%.
The net
interest margin was within the guided range at 3.8%.
The
bank has reduced GNPA ratio to 4.5% and net ratio to 1.27% end December 2023.
The provision
coverage ratio was healthy at 93.7%.
The
fresh slippages ratio stood at 0.34% in Q3FY2024.
The
credit cost was higher at 1.26% most of which was on account of proactive
provisioning.
The ROA
was at 0.69% in Q3FY2024.
The cost
to Income ratio was at 57.9% in Q3FY2024.
The
bank has continued to record net profit for the 11th strength quarter. The net
profit for 9MFY24 at Rs 1741 crore is higher than Rs 1582 crore in FY2023.
The liquidity
coverage ratio was robust at 231% as the bank continues to have low credit risk
weight ratio of 63.26%.
The
employee provisions where higher at Rs 1664 crore on account of raising wage
revision provision rate to 17% in Q3FY2024.
The co-lending
book stood at Rs 9575 crore end December 2023.
The
bank do not expect rate cut before September 2023, but the g-sec yields are expected
to soften from Q1FY2025.
The
bank expects to maintain its cost of funds steady with the strong CASA deposit
ratio of 49%.
About
51% of the loan book of the bank is linked to RBLR and 31.9% to MCLR.
The
bank expects to reduce net NPA ratio below 1% by March 2024, which will lead to
further improvement in the provision coverage ratio to 94-95%.
With
regard to the high government holding, the bank has submitted proposal for
offer for sale and it is awaiting government response.
An increase
in the restructured loan book was mainly on account of the disruptions in the
Manipur state.
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