Central Bank of India (CENTRALBK) Q2 24/25 earnings summary

Executive summary

• Total business grew 7.07% year-over-year to ₹6.44 lakh crore, with deposits at ₹3.91 lakh crore and gross advances at ₹2.52 lakh crore.

• Net profit for Q2 FY25 rose 50.91% year-over-year to ₹913 crore, marking the 14th consecutive profitable quarter; half-year net profit up 75.10% to ₹1,793 crore.

• Operating profit for Q2 FY25 increased 41.5% year-over-year to ₹2,165 crore.

• Asset quality improved, with net NPA at 0.69% and gross NPA at 4.59%.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25, with auditors' limited review and unmodified opinion.

Financial highlights

• Net interest income for Q2 FY25 was ₹3,410 crore, up 12.62% year-over-year; net interest margin stood at 3.44%.

• Non-interest income surged 55.23% year-over-year to ₹1,647 crore.

• Total income for Q2 FY25 was ₹9,849 crore, up 17.08% year-over-year.

• Provision coverage ratio at 96.31% as of September 2024; gross NPA at 4.59%, net NPA at 0.69%.

• Capital adequacy ratio (CRAR) improved to 16.27%.

Outlook and guidance

• Credit growth target for FY25 set at 12–14%, with a focus on protecting margins and bottom line.

• Confident of reaching a 70% CD ratio by year-end, supported by a robust pipeline of ₹12,800 crore in loans.

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

• Continued focus on digital initiatives and expansion into new markets via BC MAX centers.

• Management expects continued improvement in asset quality and profitability, supported by robust provisioning and capital buffers.