Earnings Review
Central Bk Jan-Mat PAT rises 28% YoY on non-interest income
This story was originally published at 18:44 IST on 28 April 2025
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--Central Bank Jan-Mar net profit INR 10.34 bln vs INR 8.07 bln year ago
--Central Bank Jan-Mar total income INR 104.33 bln vs INR 96.99 bln year ago
--Central Bank to pay INR 0.1875 per share final dividend
--Central Bank to raise INR 50 bln in FY26 via equity, debt
--Central Bank FY25 net profit INR 37.85 bln vs INR 25.49 bln year ago
--Central Bank FY25 total income INR 395.20 bln vs INR 354.34 bln yr ago
--Central Bank of India net NPA ratio 0.55% as on Mar 31 vs 0.59% qtr ago
--Central Bank of India gross NPA ratio 3.18% as on Mar 31 vs 3.86% qtr ago
--Central Bank of India Basel-III capital adequacy ratio 17.02% as on Mar 31
--Central Bank Jan-Mar provisions INR 8.44 bln vs INR 7.07 bln yr ago
--Central Bank Jan-Mar NPA provisions INR 8.30 bln vs INR 5.09 bln year ago
--Central Bank of India provision coverage ratio 96.54% as on Mar 31
By Cassandra Carvalho
MUMBAI – Central Bank of India Monday reported a sizeable increase in its profit for Jan-Mar, aided by a sharp rise in non-interest income, driven primarily by recoveries of past bad loans and lower provisions, even as net interest income fell.
For the final quarter of the financial year 2024-25 (Apr-Mar), the public-sector bank's bottom line stood at INR 10.34 billion, up 28% on year. Sequentially, the company's profit after tax rose 7.8%. For the full year, the bank's profit after tax was INR 37.85 billion, up 48.5% from FY24.
Shares of the bank, which will pay a final dividend of INR 0.1875 per share, closed 1.4% higher Monday at INR 37.40 on the National Stock Exchange. The bank announced its earnings shortly after the market closed.
In Jan-Mar, Central Bank of India's total income rose 7.6% on year to INR 104.33 billion on the back of a 33.2% jump in non-interest income to INR 18.14 billion, aided by a 45.9% rise in profit on sale of investments under treasury income to INR 3.69 billion and a similar increase in other receipts, including recoveries from written-off accounts, to INR 8.08 billion.
The bank's net interest margin for the financial year ended March was 3.40%, unchanged from a year ago. However, its net interest income for the same period stood at INR 138.97 billion, up 7.8% on year, the bank said in a press release. Sequentially, the bank's net interest income fell by 4.0%. The bank's other income rose to INR 58.55 billion in the year ended March, from INR 47.11 billion a year ago.
The bank's net non-performing asset ratio improved to 0.55%, from 1.23% a year ago, while its gross non-performing asset ratio fell to 3.18%, from 4.50% a year ago.
The bank's provision coverage ratio improved to 96.54% in FY25, from 93.58% in FY24. Provisions and contingencies other than tax for the Jan-Mar quarter were INR 8.44 billion, up from INR 7.07 billion a year ago.
Provisions for non-performing assets rose to INR 8.30 billion, from INR 5.09 billion a year ago. Central Bank's slippage ratio for the reporting quarter stood at 0.56%, up 17 basis points from a quarter ago.
The credit-to-deposit ratio of bank rose by 554 bps to 71.13% as of Mar. 31, with gross loans increasing by 15.2% on year to INR 2.90 trillion as of Mar. 31. The bank's deposits grew by a more modest 7.2% on year to INR 4.13 trillion in the same period. The bank's credit cost ratio rose to 1.21% in Jan-Mar from 0.85% a year ago.
The lender's current account savings account deposits grew 4.8% on year to INR 2.01 trillion, with the current account savings account base constituting 48.9% of total deposits, down from 50.0% a year ago.
The bank's credit performance remained strong, with 16.1% year-on-year growth in its retail, agriculture, and micro-small-medium-enterprises business. The individual sector-wise on-year growth for retail stood at 15.7%, 13.9% for agriculture, 13.5% for corporations and 18.8% for micro, small, and medium enterprises.
As of Mar. 31, the bank had a pan-India presence with a network of 4,545 branches, with 65% of these branches located in rural and semi-urban areas.
The board of Central Bank of India has approved a proposal to raise up to INR 50 billion through a follow-on public offer, rights issue, qualified institutional placement, preferential issue, or issuance of bonds or other debt securities for FY26. The bank's Basel-III capital adequacy ratio was 17.02% as of Mar. 31. End
Edited by Rajeev Pai
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