Earnings Review
Central Bank's net profit slumps on sharp rise in income tax
This story was originally published at 21:20 IST on 30 April 2026
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--Central Bank Jan-Mar net profit INR 7.24 bln vs INR 10.34 bln year ago
--Central Bank Jan-Mar total income INR 108.10 bln vs INR 103.33 bln year ago
--Central Bank Jan-Mar provisions INR 5.04 bln vs INR 8.44 bln year ago
--Central Bank Jan-Mar NPA provisions INR 6.47 bln vs INR 8.30 bln year ago
--Central Bank to pay INR 0.60 per share interim dividend
--Central Bank interim dividend record date May 8
--Central Bank board OKs raising up to INR 70 bln in FY27 via equity, debt
--Central Bank gross NPA ratio 2.67% on Mar 31 vs 2.70% quarter ago
--Central Bank net NPA ratio 0.49% on Mar 31 vs 0.45% quarter ago
--Central Bank Basel III capital adequacy ratio 17.91% on Mar 31
--Central Bank FY26 net profit INR 43.69 bln vs INR 37.85 bln year ago
--Central Bank FY26 total income INR 423.41 bln vs INR 393.08 bln year ago
--Central Bank takes hit of INR 6.32 bln in Q4 after reassessing tax
By J. Navya Sruthi
MUMBAI – Central Bank of India Ltd.'s net profit fell for the first time in 20 quarters in the March quarter, driven by the one-time impact of changes in deferred tax calculations which pushed up income tax. However, the bank's total income rose on year due to higher interest earned in the March quarter.
The bank's net profit fell 30% from a year ago to INR 7.24 billion. Income tax surged over 594% on year, the most in 11 quarters, to INR 8.67 billion as the bank recalculated its net deferred tax assets at 25.168%, which resulted in a one-time charge of INR 6.32 billion. The net deferred tax assets amounts to INR 16.28 billion as of Mar. 31, down from INR 31.46 billion in the previous year.
If not for the one-time deferred tax of INR 6.32 billion, the income tax amount would have been INR 2.35 billion. The net profit then would have been INR 13.57 billion, which is up over 31% from INR 10.34 billion seen in the year-ago quarter.
Total income and total expenses excluding provisions and contingencies for the quarter rose nearly 5% on year to INR 108.11 billion and INR 87.14 billion, respectively. Interest income rose over 12% on year to INR 96.61 billion while other income fell nearly 33% on year to INR 11.50 billion. Interest expended rose over 8% on year to INR 56.59 billion, while employee costs fell nearly 5% on year to INR 18 billion.
Provisions and contingencies fell over 40% on year to INR 5.04 billion in the March quarter. The bank's provisions for non-performing assets was INR 6.47 billion, down from INR 8.30 billion in the year-ago period. The gross non-performing assets ratio as of Mar. 31 was 2.67%, down from 2.70% a quarter ago. The net non-performing assets ratio as of Mar. 31 was 0.49%, up from 0.45% a quarter ago.
Central Bank's Basel III capital adequacy ratio was 17.91% on Mar. 31. The bank announced to pay INR 0.60 per share as an interim dividend and set May 8 as the record date. On Thursday, shares of Central Bank of India closed 0.5% higher at INR 36.42 on the National Stock Exchange of India.
For 2025–26 (Apr-Mar), the bank reported a net profit of INR 43.69 billion, up from INR 37.85 billion a year ago. The total income was INR 423.41 billion, up from INR 393.08 billion a year ago. The board has approved raising funds of up to INR 70 billion in FY27 through debt and equity. End
Edited by Deepshikha Bhardwaj
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