Central Bank of India posts 13 per cent rise in Q1 profit

New Delhi: Central Bank of India has begun the new financial year on a stronger footing, reporting double-digit growth in net profit and loan book while further improving asset quality. The lender also expanded its international presence by opening an International Financial Services Centre (IFSC) Banking Unit at GIFT City.

Central Bank of India reported a 13.26 per cent increase in net profit to Rs 1,324 crore for the quarter ended 30 June 2026, compared with Rs 1,169 crore in the corresponding quarter last year.

Net interest income rose 15.70 per cent year on year to Rs 3,914 crore from Rs 3,383 crore, while total income increased 3.08 per cent to Rs 10,678 crore.

Operating profit, however, slipped to Rs 2,186 crore from Rs 2,304 crore in the year-ago quarter.

The bank’s global business expanded 18.29 per cent to Rs 8.33 lakh crore, driven by strong growth in advances. Gross global advances rose 28.58 per cent to Rs 3.54 lakh crore, while total deposits increased 11.68 per cent to Rs 4.79 lakh crore.

Current account and savings account (CASA) deposits accounted for 46.61 per cent of total deposits, while the credit-deposit ratio stood at 74.10 per cent.

Retail-focused lending continued to gather pace, with the bank’s retail, agriculture and MSME portfolio growing 21.38 per cent year on year. Retail advances rose 23.92 per cent to Rs 1.06 lakh crore, agriculture advances increased 21.14 per cent to Rs 64,274 crore, and MSME advances climbed 18.03 per cent to Rs 71,308 crore.

Asset quality also improved during the quarter. Gross non-performing assets declined to 2.60 per cent from 3.13 per cent a year earlier, while net NPAs remained stable at 0.49 per cent.

The provision coverage ratio stood at 95.86 per cent, while the slippage ratio improved to 0.29 per cent. Credit cost also declined to 0.40 per cent from 0.68 per cent in the corresponding quarter last year.

Net interest margin stood at 3.06 per cent, reflecting a marginal impact from recent regulatory rate cuts. Return on assets was 1.00 per cent, while return on equity improved to 14.92 per cent from 14.17 per cent.

The bank also strengthened its capital position, with its Basel III capital adequacy ratio improving to 18.28 per cent from 17.66 per cent a year earlier. Tier I capital stood at 16.54 per cent.

As part of its international expansion strategy, Central Bank of India opened an IFSC Banking Unit at GIFT City in Gandhinagar, Gujarat. The new unit had already built business worth Rs 472.67 crore by the reporting date.

The lender ended the quarter with 22,346 touchpoints, including 4,605 branches, 3,820 ATMs, 13,890 business correspondent outlets, 30 BC Maxx Centres, and one IFSC Banking Unit.

With loan growth outpacing deposits, bad loans continuing to fall and capital buffers strengthening, Central Bank of India has entered the new financial year with improving fundamentals despite a modest decline in operating profit.