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Central Bank booked a net loss of ₹836.62 crore for the third quarter of this fiscal as against a net profit of ₹137.65 crore in corresponding year-ago quarter. The loss was booked on account of higher provisioning of ₹1,499 crore in Q3 FY16 (₹699 crore in Q3 FY15).
Total income fell from ₹7,032.7 crore in Q3 FY15 to ₹6,911.62 crore in Q3 FY16.
Total expenditure increased from ₹6,171 crore to ₹6,249.79 crore during the same period. The increase was on account higher operating expenses (from ₹401.28 crore to ₹440.41 crore) and manpower cost (from ₹922.17 crore to ₹1133.88 crore).
However, interest expended declined from ₹4,847.64 crore to ₹4,675.5 crore year-on-year.
Capital adequacy ratio as per Base-III norms was up 24 bps to 10.44 while net NPAs increased from 3.58 to 5.3 per cent.
New calculation Complying with RBI’s norms, the bank changed the basis of calculation of provision for diminution in fair value from base rate/PLR as on date of restructuring plus appropriate term/credit risk premium to the actual interest charged before restructuring for discounting future cash flows.
As a result, Central Bank wrote back a provision of ₹570.95 crore during the nine-month period ended December 31,2015, as a one-time measure.
The bank had to increase its provision by ₹229.83 crore for the nine-month period for complying with the RBI’s norms related to investment portfolio.
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