Central Bank of India (CENTRALBK) Q1 24/25 earnings summary

Executive summary

• Net profit surged 110.53% year-over-year to INR 880 crore for Q1 FY25, driven by strong growth in advances and improved asset quality.

• Total business grew 8.97% year-over-year to INR 6,35,564 crore, with deposits at INR 3,84,000 crore and gross advances up 13.99% to INR 2,50,615 crore.

• CASA ratio remained robust at 49.19%, maintaining a leading industry position.

• RAM (Retail, Agriculture, MSME) advances grew 18.81% year-over-year.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with auditors issuing an unmodified opinion.

Financial highlights

• Net interest income increased 11.71% year-over-year to INR 3,548 crore; net interest margin improved to 3.57%.

• Non-interest income rose 21.48% year-over-year to INR 1,165 crore, with treasury income up 42.55% to INR 402 crore.

• Operating profit rose 8.43% to INR 1,993 crore; total income up 16.08% to INR 9,500 crore.

• Gross NPA ratio improved to 4.54% (down 41 bps year-over-year); net NPA at 0.73% (down 102 bps).

• Provision coverage ratio at 96.17%; slippage ratio at 0.34%.

Outlook and guidance

• Advance growth guidance for FY25 remains at 14-15%, with CD ratio targeted at 69-70% by year-end.

• Deposit growth expected to accelerate to 8-10% for FY25, with continued focus on maintaining high CASA ratio.

• ROA guidance for FY25 is 0.75-0.85%, with an endeavor to reach 1%.

• NIM expected above 3%, gross NPA below 4%, net NPA below 1%, and PCR at 95-96%.

• Recoveries from written-off accounts expected to match last year’s INR 1,433 crore.