Central Bank of India in deep red

Central Bank of India (CBI) is amongst the top losers on the BSE right since the opening bell. The reason –a very dismal performance for Q1FY18.

The bank’s loss making saga continues and so does poor asset quality. It reported a loss of Rs.577 crore in current Q1 v/s loss of Rs.600 crore in previous Q1. This was only thanks to a dip in provisions at Rs.1269 crore, down 18% (YoY).  Its NII was at Rs.1,331 crore, down 20% from the year-ago period.

In terms of asset quality, Gross NPA went up sharply from 13.52% to 18.23% (YoY) and up 43 bps sequentially. Net NPA too showed a very big jump to 11.04% from 8.17%. This is very big erosion of asset quality and the market is obviously punishing the Bank for this.

 Its capital adequacy ratio (CAR) under Basel-III was at 9.61%, down 30% (YoY).

The stock price lost almost 5% at Rs.86.50 within minutes of the opening bell and currently remains in a deep hue of red.