Central Bank of India delivered robust financial results for the June quarter, with consolidated net profit rising 13.26% year-on-year to ₹1,324 crore compared to ₹1,169 crore in the same period last year. According to latest reports, the state-owned lender's total operating income surged 3.08% to ₹10,678 crore from ₹10,360 crore in the June quarter of FY26, demonstrating strong revenue growth. However, operating profit declined 5.12% year-on-year to ₹2,186 crore from ₹2,304 crore in the year-ago period, reflecting mixed operational performance despite strong bottom-line growth. Interest earnings improved significantly to ₹9,691 crore compared to ₹8,589 crore in the June quarter of FY26, supporting the overall income growth. Provisions for bad loans fell significantly to ₹862 crore from ₹1,136 crore at the end of June 2025, indicating improved asset quality management.
The bank's asset quality showed remarkable sequential improvement during the quarter, with gross non-performing assets (GNPA) declining to 2.60% from 3.13% a year ago, while net NPAs remained stable at 0.49% at the end of June 30, 2026. As reported by The Hindu BusinessLine, this represents a significant improvement from the previous quarter's deterioration. The bank's provision coverage ratio stood at 95.86%, indicating strong provisioning against potential losses. Provisions for bad loans declined to ₹862 crore from ₹1,136 crore in the preceding quarter, demonstrating the bank's improved asset quality management. Slippages for the quarter stood at ₹939 crore, compared to ₹1,301 crore during the same quarter last year, showing a 36% decline in fresh non-performing assets. However, operating margins declined from 22.24% to 20.47%, reflecting the impact of higher NPAs on profitability.
Central Bank of India faced margin pressure during the quarter, with net interest margin (NIM) falling 10 basis points year-on-year to 3.06% as the fall in yield on advances was sharper than the decline in the cost of funds. As reported by Business Standard, net interest income (NII) for the quarter stood at ₹3,914 crore, up 15.70% year-on-year, though it was down 2.20% sequentially. Other income (non-interest income) fell to ₹987 crore in Q1FY27, down 44.27% year-on-year and 14.17% sequentially, due to a decline in treasury income. Treasury income fell to ₹276 crore, down 58.43% year-on-year, as profit on the sale of investments dropped to ₹102 crore from ₹577 crore a year earlier. Interest earnings improved significantly to ₹9,691 crore compared to ₹8,589 crore in the June quarter of FY26, supporting the overall income growth. The decline in treasury income and other receipts was attributed to regulatory rate cuts and reduced recovery in written-off accounts.
Central Bank of India's balance sheet expanded significantly during the quarter, with gross advances rising to ₹3.54 lakh crore as of June 30, 2026, from ₹2.76 lakh crore at the end of March. According to Business Standard, global advances grew 28.58% year-on-year to ₹3,54,348 crore, led by a 46.52% surge in corporate credit to ₹1,12,770 crore and 21.38% growth in RAM (retail, agriculture and MSME) advances to ₹2,22,892 crore. Total deposits increased by 11.68% YoY to ₹4,78,972 crore, while CASA deposits grew 11.16% to ₹2,22,892 crore; the CASA ratio eased by 27 basis points to 46.61% from 46.88% in the year-ago quarter. The bank's Capital Adequacy Ratio under Basel III improved to 18.28% from 17.66% at the end of the first quarter of FY26, while the Common Equity Tier-I (CET-I) ratio rose to 16.54% from 15.61%, strengthening its capital position significantly.
Despite the positive financial results, shares of Central Bank of India closed at ₹31.68 apiece, down 2.79% over the previous close on BSE after the state-run lender reported Q1FY27 results. The stock has been under pressure, falling 16% over the past year and 14.73% year-to-date, significantly underperforming the broader market. Central Bank of India shares have fallen more than 16% over the past year, while the Nifty PSU Bank index has gained nearly 16% during the same period. The stock traded at a price-to-earnings ratio of 6.58 at the close of the previous trading session, with total traded volume standing at 15.35 times its 30-day average and the relative strength index at 52.87, indicating moderate selling pressure despite the positive financial results.
