Central Bank of India Reports Positive Financial Results for Q1 FY25, Stock Call: Hold

Central Bank of India, one of the leading public banks in India, has recently declared its financial results for the quarter ending June 2024. The stock call for the bank by MarketsMOJO is ‘Hold’.

According to the financials, Central Bank has shown a positive performance in the quarter, with a score of 10 compared to 18 in the previous quarter. The bank’s Profit After Tax (PAT) for the quarter is the highest at Rs 879.94 crore and has been growing consistently for the past five quarters. This indicates a very positive trend in the near term for the bank’s profitability.

Another positive aspect for Central Bank is the decrease in its Net Non-Performing Assets (NPA) ratio, which is at its lowest at 0.73%. This shows that the proportion of stressed loans given by the bank is decreasing. The Net Interest Income for the quarter is also the highest at Rs 3,547.73 crore, indicating an increase in the bank’s income from its core business.

The bank’s Profit After Tax (PAT) for the quarter has grown by 38.1% compared to the average PAT of the previous four quarters. This shows a positive trend in the bank’s profitability in the near term. The Earnings per Share (EPS) for the quarter is also the highest at Rs 1.01, indicating an increase in profitability and higher earnings for shareholders.

Central Bank’s Capital Adequacy Ratio (CAR) for the quarter is the highest at 15.68%, showing an improvement in the bank’s capital base compared to its risk assets. However, it is also noted that the bank may not be taking enough risks in its lending book.

On the other hand, the bank’s Profit Before Tax (PBT) for the quarter has fallen by -120.6% compared to the average PBT of the previous four quarters. This indicates a very negative trend in the near term for the bank’s profitability. The Non-Operating Income for the quarter is also high at 145.23% of the PBT, which may not be a sustainable business model for the bank.

Overall, Central Bank of India has shown a positive financial performance in the quarter ending June 2024, with some areas of improvement and some areas of concern. Investors are advised to hold their stocks in the bank and keep a close eye on its future financial results.