Central Bank of India (CENTRALBK) Q1 25/26 earnings summary

Executive summary

• Net profit reached INR 1,169 crore, up 32.84% year-over-year, with ROA at 1.02% and ROE at 14.17%, reflecting improved asset quality and strong recoveries.

• Gross NPA reduced to 3.13% and net NPA to 0.49%, with provision coverage at 97.02%.

• Total business grew by 10.84% to INR 7.04 trillion, with deposits up 11.41% and advances up 9.97%.

• CASA deposits crossed INR 2 lakh crore, maintaining a 46.88% share.

• Interim dividend of 2% per share declared for FY2025-26.

Financial highlights

• Operating profit increased by 15.60% to INR 2,304 crore.

• Non-interest income surged 53.30% YoY to INR 1,786 crore, mainly from treasury gains and recoveries.

• Net interest income for Q1 FY 25-26 was INR 3,383 crore, down 4.65% YoY.

• Cost-to-income ratio improved to 55.43% from 57.71% YoY.

• Provision on NPAs reduced to INR 468 crore; total provisions at INR 1,135 crore.

Outlook and guidance

• Loan growth target for FY2026 set at 14–16%, with focus on RAM (retail, agri, MSME) portfolio.

• Management expects further business acceleration, leveraging digital platforms and co-lending partnerships.

• Anticipates moving to a lower tax regime next year, adding 9–10 bps to ROA.

• Treasury outlook positive, expecting further rate cuts and G-Sec yields below 6% by year-end.

• Asset quality targets: Gross NPA below 3.16%, Net NPA below 0.45%, PCR 96-98%.