Increased NPAs, fresh slippages led to Q2 loss:Central Bank

Central Bank posted disappointing set of second quarter numbers. It posted losses to the tune of Rs 1,500 crore and asset quality also deteriorated. Rajeev Rishi, CMD of the bank says this is on account of almost twice the provisioning than in the first quarter. It is on account of increased NPAs and fresh slippages, he says.

Also Read: Central Bank posts Rs 1,508 cr loss in Q2

Below is the verbatim transcript of Rajeev Rishi's interview on CNBC-TV18

Q: What led to the loss?

A: We have posted a loss of Rs 1,500 crore which is a big loss. This loss has primarily occurred on account of almost twice the provisioning that we did in the first quarter. This provisioning is on account of increased NPAs, almost around Rs 1,700 crore of provisions on account of NPAs. Our fresh slippage has been almost Rs 2,500 crore. My gross NPA today stands at 6.47 percent.

Q: Where do you think the pain is? Is it largely associated with asset quality pressures that we are seeing?

A: Almost Rs 2,500 crore of fresh slippage has been there. But if you take a look at my total gross NPA, my gross NPA has gone up from Rs 10,500 crore to Rs 11,500 crore which is just around Rs 1,000 crore for a bank of our size.

This quarter the pain has arisen mainly on account of additional provisioning required on account of migration.