Central Bank of India

Central Bank of India reported a significant 18.29% growth in total global business, reaching ₹833,320 crores. Gross global advances increased by 28.58% to ₹3,54,348 crores, with the CD ratio improving to 74.10%. This growth was primarily driven by the RAM sector, which grew 21.38%, including retail advances up 23.92% to ₹1,05,523 crores and corporate credit up 46.52% to ₹1,12,770 crores.

The bank's net profit for Q1 FY27 increased by 13.26% to ₹1,324 crores, with Net Interest Income growing 15.70% year-on-year to ₹3,914 crores. Asset quality showed marked improvement, with Gross NPA reducing by 53 basis points year-on-year to 2.60% and Net NPA standing at 0.49%. The Provision Coverage Ratio (PCR) remained strong at approximately 95.86%, and the slippage ratio was contained at 0.29%.

Capital adequacy remains robust with a CRAR of 18.28% and Tier 1 capital at 16.54%, indicating sufficient capital for future growth without immediate dilution plans. The bank maintained its Net Interest Margin (NIM) at 3.06% and Return on Assets (ROA) at 1%. Management is actively focusing on efficiency, aiming to reduce the cost-to-income ratio by 1.5% to 1.6% percentage points from the current 55.40% in the coming year through increased non-interest income and cost curtailment.

Central Bank of India is implementing several strategic initiatives, including opening a new branch at GIFT City, Gandhinagar, to leverage overseas business opportunities. The bank is also establishing dedicated gold loan and SHG divisions reporting directly to Executive Directors to harness growth in these high-yielding segments. Furthermore, 1,000 credit officers are being trained for deployment, and new business verticals like wealth management and credit cards are being introduced to expand service offerings and customer base.

The bank's deposit base grew by 11.68% to ₹478,972 crores, with CASA maintaining a strong 46.61% of total deposits. Term deposits grew by over 12%, and 85% of deposits are retail, under ₹3 crores. While the Liquidity Coverage Ratio (LCR) moderated from 235% to 156% and NSFR from 147% to 128%, management stated this was a strategic optimization of high-quality liquid assets for better returns, with ratios still above regulatory requirements.

The bank expects to recover ₹2,200-₹2,500 crores from technically written-off accounts in FY27, building on ₹2,100 crores recovered last year. Management is targeting to sell 600-700 properties in the current financial year to aid recoveries. The bank is confident in achieving its guidance of 11-12% deposit growth and 14-16% advances growth, with an expected overall yield on advances improving to 8% by March '27.