Public sector lender Central Bank of India's quarterly loss widened due to a spike in provisioning of bad loans. Pallav Mohapatra, MD & CEO of Central Bank, spoke to CNBC-TV18 about the financial results.
"The major reason for the loss in Q4 was on account of RBI divergence which was on 31 March, 2018 audit and the report came to us in the fourth quarter. So this divergence plus ageing on those divergences, which took place in 2018-19, and the interest reversal, which we had to book in the fourth quarter. The net impact of that on profit and loss was Rs 2,800 crore," Mohapatra said on Friday.
"The bank’s total NCLT exposure is Rs 7,503.9 crore, out of which the provision ratio against all those asset is 86 percent", said Mohapatra.
According to Mohapatra, there was no improvement in divergence through the course of FY19 and so provisions went up. "However, the corporate large accounts were few and there is a hope we will be able to recover a reasonable percentage of divergence of NPAs from agriculture and retail."