Earnings Review
Fall in provisions, tax sees Central Bank's PAT rise 33%
This story was originally published at 18:35 IST on 17 October 2025
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--Central Bank Jul-Sept net profit INR 12.13 bln vs INR 9.13 bln year ago
--Central Bank Jul-Sept total income INR 102.50 bln vs INR 98.49 bln yr ago
--Central Bank Jul-Sept provisions INR 3.14 bln vs INR 5.98 bln year ago
--Central Bank Jul-Sept NPA provisions INR 1.44 bln vs INR 3.41 bln year ago
--Central Bank gross NPA ratio 3.01% as on Sept 30 vs 3.13% quarter ago
--Central Bank Basel III capital adequacy ratio 17.34% as on Sept 30
--Central Bank Apr-Sept net profit INR 23.82 bln vs INR 17.93 bln year ago
--Central Bank Apr-Sept total income INR 206.24 bln vs INR 193.49 bln yr ago
--Central Bank to pay INR 0.20 per share interim dividend
By Srijita Bose
MUMBAI – A drop in provisions and contingencies led to a jump of nearly 33% in Central Bank of India's bottom line. Though the operating profit fell, the bank's net profit posted a rise aided by a fall in tax expenses.
Central Bank of India reported a net profit of INR 12.13 billion for the September quarter, up from INR 9.13 billion a year ago and INR 11.69 billion a quarter ago. For the half year ended Sept. 30, the bank posted a net profit of INR 23.82 billion, up from INR 17.93 billion a year ago.
For the reporting quarter, the bank's provisions and contingencies other than tax nearly halved on year to INR 3.14 billion, down also from INR 5.21 billion a quarter ago. Shares of the state-owned bank on the National Stock Exchange fell after it announced its earnings Friday and ended 2.6% lower at INR 36.92. The bank said it will pay an interim dividend of INR 0.20 per share.
The operating profit of the bank, which does not include provisions and contingencies, fell to INR 17.86 billion from INR 21.65 billion a year ago. The bank reported a profit before tax of INR 14.71 billion for the quarter, down from INR 15.67 billion a year ago. However, its profitability did not take a hit, thanks to the 60% fall on year in tax expenses to INR 2.59 billion, according to the results announced by the bank Friday.
Within provisions, the bank set aside INR 1.44 billion for non-performing assets, down nearly 58% on year and more than 69% on quarter. The ratio of gross non-performing assets of the bank fell to 3.01% as of Sept. 30, from 3.13% a quarter ago and 4.59% a year ago. The asset quality improved with the net non-performing assets ratio at 0.48% as of the end of September, down from 0.69% a year ago and slightly from 0.49% a quarter ago. For the reporting quarter, the bank's slippage ratio also improved to 0.30% from 0.38% a year ago.
For the quarter, the bank earned a total income of INR 102.50 billion, up from INR 98.49 billion a year ago. For the six months ended Sept. 30, the bank's total income stood at INR 206.24 billion, up from INR 193.49 billion a year ago.
The interest earned by the bank during the reporting quarter was up nearly 7% on year and just 2% on quarter at INR 87.43 billion. However, the income on its investments improved nearly 11% on quarter to INR 25.88 billion, though the rise was just short of 2% on year. The bank's other income for the quarter fell over 8% on year to INR 15.07 billion.
On the liabilities side, the interest expended by the bank during the quarter was up 14% on year at INR 54.60 billion. Its net interest margin fell to 2.89% from 3.41% a year ago. The bank has guided maintaining the net interest margin above 3% for the year ending Mar. 31. The fall in the interest margin in the September quarter could be attributed to the cut of 100 basis points in the Reserve Bank of India's repo rate so far this year.
Central Bank of India's Basel III capital adequacy ratio was 17.34% as of Sept. 30, up from 16.27% a year ago but down from 17.66% a quarter ago. Its liquidity coverage ratio improved to 241.96% from 240.19% a year ago.
The bank's cost of funds rose to 4.88% from 4.75% a year ago. On the deposits side, the bank's current and savings accounts held INR 2.08 trillion at the end of the September quarter, up nearly 9% on year. However, the percentage of current accounts and savings accounts to total deposits fell slightly to 46.83% from 48.93% a year ago. The bank's total advances were at INR 2.93 trillion as of Sept. 30, up 16% on year. End
Edited by Rajeev Pai
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