Central Bank of India Q1 Profit Rises 13% as Loan Growth, Asset Quality Improve
Central Bank of India reported a 13% rise in Q1 FY27 profit, driven by strong loan growth, higher NII and improved asset quality.
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The Central Bank of India’s consolidated net profit in the first quarter of FY27 grew 13.26 per cent year-on-year on the back of robust credit growth, higher net interest income and sustained improvement in asset quality.
The state-run lender posted a net profit of ₹1,324 crore for the quarter ended June 30, 2026, against ₹1,169 crore in the corresponding quarter of the previous year.
Total income increased 3.08% year-on-year to ₹10,678 crore.
The bank’s core lending business remained the mainstay for its earnings with net interest income (NII) growing by 15.70% to ₹3,914 crore from ₹3,383 crore in the year-ago period.
Operating profit, however, declined to ₹2,186 crore from ₹2,304 crore in the year-ago quarter, impacted by higher operating expenses and treasury related movements on profitability.
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Strong loan growth:
The Central Bank of India’s global business rose 18.29% year-on-year to ₹8.33 lakh crore on the back of healthy growth in both loans and deposits.
Gross global advances rose 28.58 per cent to Rs 3.54 lakh crore and total deposits grew 11.68 per cent to Rs 4.79 lakh crore.
The bank had a sound funding profile with CASA deposits constituting 46.61% of the total deposits, thereby taking its credit-deposit ratio to 74.10%.
Growth was driven by retail, agriculture and MSME lending.
Bank’s total RAM (Retail, Agriculture and MSME) portfolio increased 21.38% YoY. Retail advances rose 23.92% to ₹1.06 lakh crore, agriculture advances were up 21.14% to ₹64,274 crore and MSME loans grew 18.03% to ₹71,308 crore.
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Asset quality strengthens:
The lender also said asset quality continued to improve during the quarter.
Gross non-performing assets (GNPA) declined to 2.60%, compared with 3.13% a year ago, while net NPAs stood at 0.49%.
Provision coverage ratio of the bank improved to 95.86%. Slippage ratio was at 0.29%. Costs of borrowing also fell to 0.40% from 0.68% in the same period last year.
The net interest margin (NIM) was slightly lower at 3.06%, due to the effect of the recent policy rate cuts. The return on equity (RoE) was higher at 14.92%.
The bank’s capital adequacy ratio (CAR) under Basel III norms stood at 18.28% as on June 30, up from 17.66% a year ago.
