Shares of Central Bank of India slipped today. Know why

Shares of Central Bank of India, 82 percent controlled by the government, slipped in trade after the bank announced a tepid set of numbers on the back of a weak disbursals.

Central Bank said its first quarter net profit rose 6.3 percent to 203.6 crore rupees compared with 191.6 crore rupees in the same quarter a year ago. The bank's Net Interest Income rose marginally to 1,844 crore rupees during April-June versus 1,821 crore rupees in the year ago period.

Central Bank said its Gross Non performing Assets inched up to 6.7 percent of advances against 6.09 percent sequentially and its first quarter Net Non Performing Assets rose to 4 percent in the first quarter compared with 3.61 percent in the past three months..

Central Bank dropped 1.9 percent, or 2.1 rupees, to 104 rupees on the National Stock Exchange where 1.76 lakh shares were traded compared with the 5-day average of 6 lakhs.

Central Bank's market capitalisation has jumped 60 percent in the past one year to 17,411 crore rupees as it is one the rare PSU lenders in which investors continued to retain their faith despite being bearish on the space owing to a slowdown in the economy and rising non performing assets in major industries such as Steel, Infrastructure and power.

Image credit: Indiatimes