Central Bank of India today reported a net loss of Rs 898 crore for the March quarter on account of surge in bad loans.
The state-owned bank had posted a net profit of Rs 174.2 crore in the January-March quarter of 2014-15, it said in a statement.
Total income declined to Rs 6,711.8 crore during the quarter under review as against Rs 7,321.5 crore, a year-ago.
As far as asset quality is concerned, the gross NPA as a percentage to total advances rose to 11.95 per cent during the quarter as against 6.09 per cent in the same period, a year-ago.
The bank's net NPAs also increased to 7.35 per cent from 3.61 per cent at the end of March 2015.
As a result, provisions other than tax and contingencies increased to Rs 2,286.66 crore during the quarter compared with Rs 617.17 crore in the year-ago period.
NPAs over 10 per cent may lead RBI to initiate "prompt corrective action" with the view to improve internal processes to deal with bad loans.
For the entire 2015-16, the bank reported a loss of Rs 1,418.1 crore. It had posted a profit of Rs 606.4 crore in 2014-15.
The total income declined to Rs 27,826.6 crore during the fiscal as against Rs 28,303 crore in 2014-l5.
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