More Stories

Informist, Saturday, Jul. 19, 2025

By Gowri Lakshmi 

MUMBAI – Central Bank of India Ltd. Saturday reported a 32.8% on-year rise in its net profit for the quarter ended June, supported by a sharp decline in provisions and contingencies. The bank's profit for Apr-Jun stood at INR 11.69 billion from INR 8.80 billion a year ago. Provisions and contingencies of the bank stood at INR 5.21 billion as of Jun. 30. For the corresponding quarter a year ago, the bank made provisions of INR 11.91 billion. The bank's provision coverage ratio was 97.02% as of Jun. 30. 

The bottom line of the bank was also aided by a rise in other income, which stood at INR 17.86 billion, up 53.25% on year. The total income of the bank for the reporting quarter was INR 103.74 billion, up 9.2% on year.

The asset quality of the bank also improved as the net non-performing assets ratio fell to 0.49% as of Jun. 30, compared to 0.55% a quarter ago. Sequentially, the gross non-performing assets ratio also declined to 3.13% as of Jun. 30, from 3.18%. Provisions made for non-performing assets for the reporting quarter were INR 4.68 billion, down 64.6%.

Recoveries for the quarter was at INR 3.72 billion, while regular write-offs were at INR 330 million, up from 280 million a year ago. The slippage ratio was at 0.35%, little changed from 0.34% a year ago. Sector-wise, the agriculture sector contributed the most to the bank's non-performing assets, followed by micro, small, and medium enterprises. 

The bank's expenses, however, weighed on the bottom line. Total expenses rose 7.5% on year to INR 80.70 billion. Operating expenses of the bank rose 5.3% on year, but fell 10.7% sequentially to INR 28.65 billion. The Basel III capital adequecy ratio of the bank was 17.66% as of Jun. 30.

The bank declared an interim dividend of INR 0.20 per share for 2025-26 (Apr-Mar). On a quarter-on-quarter basis, the bank's income earned from interest rose only marginally, by 0.4%, at INR 85.89 billion for the quarter ended June. Net profit margin of the bank was 11.27% for Apr-Jun, up from 9.26% a year ago. 

Total deposits grew 11.4% on year to INR 4.29 trillion. The current account savings account deposits of the bank rose 6.2% on year to INR 2.01 trillion in Apr-Jun. The current account savings account ratio fell 231 basis points to 46.88% for the reporting quarter. Gross advances of the bank stood at INR 2.76 trillion, from INR 2.51 trillion a year ago. 

For FY26, the banks expects deposits to grow 10-12% and the net interest margin to remain above 3%. For the June quarter, the net interest margin of the bank was 3.16%. The bank expects its gross non-performing assets ratio to fall below 3% and the net non-performing assets ratio to fall below 0.45%. On Friday, shares of Central Bank of India closed 1.2% lower at INR 38.14 on the National Stock Exchange.  End

Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.