The RBI has listed public sector bank Central Bank of India as a weak bank due to high bad loans and revenue problems. The company’s stock opened today with a 15 percent gain as it delisted after 5 years.
Central Bank of India was the only bank under the PCA framework, RBI’s watchdog. RBI placed the bank under watch in 2017 due to high levels of net bad loans and very low earnings.
Since then till October 2020, shares of Central Bank of India have seen a 90 percent decline. Then there was a boom. Today, its shares opened trading with a 15% rise. The stock fell over 7 percent to trade at Rs 21.80 per share as of 2 pm today as many started selling at that level.
After the 2015 financial year, the central bank posted its full-year profit in the 2022 financial year. 1,045 crore profit in FY 2022. The bank’s net profit rose 14.2 percent to Rs 234.78 crore in the June quarter. Its profit was Rs 205.58 crore in the same quarter last fiscal.
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Similarly, the total bad debt ratio of Central Bank was 15.92 percent last year. Now it has decreased to 14.9 percent. Net NPLs decreased from 5.09 percent to 3.93 percent. Total credit rose 11 percent to Rs 1.95 lakh crore. Agricultural retail loans, small loans contribute 66% of the total loan book. Total deposits rose 3.4 percent to Rs 3.4 lakh crore.
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