Central Bank of India — Q1 FY27 earnings call

Call held 17 Jul 2026

Management summary

Central Bank of India reported a strong Q1 FY27, marked by robust growth in total business and advances, with global business reaching ₹833,320 crores and advances growing 28.58%. Profitability improved with net profit up 13.26% to ₹1,324 crores, and asset quality showed significant improvement with GNPA at 2.60% and NNPA at 0.49%. While liquidity ratios moderated, they remain above regulatory thresholds, and capital adequacy is strong with CRAR at 18.28%.

Highlights

  • Total global business grew by 18.29% to ₹833,320 crores, demonstrating strong overall expansion.

  • Gross global advances increased significantly by 28.58% to ₹3,54,348 crores, driven by RAM and corporate segments.

  • Net profit for the quarter rose by 13.26% to ₹1,324 crores, reflecting improved profitability.

  • Asset quality showed improvement with Gross NPA at 2.60% (down 53 bps YoY) and Net NPA at 0.49%, supported by a PCR of 95.86%.

  • Capital adequacy remains robust with CRAR at 18.28% and Tier 1 capital at 16.54%, providing ample room for growth.

  • Cost of deposit improved to 4.60%, a 33 basis point improvement, indicating stabilization.

Concerns

  • Liquidity Coverage Ratio (LCR) declined from 235% to 156% and NSFR from 147% to 128%, though still above regulatory requirements, indicating a sharp moderation.

  • Treasury income for the quarter was ₹276 crores, which is less than the previous year due to market conditions.

  • The cost-to-income ratio slightly increased to 55.40% from 55.30% in the June '25 quarter, though management aims for future reduction.

Key financials

  1. Total Global Business ₹8.33L Cr +18.3%YoY
  2. Deposit ₹4.79L Cr +11.7%YoY
  3. CASA Ratio 46.6%
  4. Gross Global Advance ₹3.54L Cr +28.6%YoY
  5. CD Ratio 74.1%
  6. Gross NPA 2.6% -0.53%YoY
  7. Net NPA 0.49%
  8. PCR 95.9%
  9. Operating Profit ₹2,186 Cr
  10. Net Profit ₹1,324 Cr +13.3%YoY
  11. NIM 3.1%
  12. ROA 1%
  13. ROE 14.9%
  14. Cost-to-Income Ratio 55.4%
  15. Slippage Ratio 0.29% -0.06%YoY
  16. CRAR 18.3%
  17. Tier 1 Capital 16.5%
  18. Net Interest Income ₹3,914 Cr +15.7%YoY
  19. Total Income Q1 FY27 ₹10,678 Cr +3.1%YoY
  20. Cost of Deposit 4.6% -0.33%YoY
  21. Credit Cost 0.4%
  22. Liquidity Coverage Ratio (LCR) 156%
  23. NSFR 128%

What they filed

Q1 FY27: revenue up 12.8%, net profit up 3.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue8,235 8,542 8,653 8,623 8,777 +7%9,070 +6%9,698 +12%9,726 +13%
Net profit926 966 1,106 1,284 1,234 +33%1,265 +31%748 −32%1,325 +3%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

SegmentGrowthValue
RAM Sector21.4%—
Retail Advances23.9%₹1.06L Cr
Agriculture Advances21.1%₹64,274 Cr
MSME Advances18%₹71,308 Cr
Corporate Credit46.5%₹1.13L Cr
RAM to Corporate Credit Ratio——

Guidance & targets

Credit Growth - Overall

  • Advances Growth Credit Growth - Overall · FY27 · High confidence 14-16%
    our guidance to market towards the resources side, 11% to 12% in deposit growth and 14% to 16% in advances growth. During current quarter also, we are going to align with this guidance, which we have given to the market.

    — Kalyan Kumar

  • Quarter-on-quarter growth Credit Growth - Overall · ongoing · Medium confidence approximately 3%
    Bank be able to maintain this growth rate, quarter-on-quarter growth will be approximately 3%.

    — Kalyan Kumar

Deposit Growth - Overall

  • Deposit Growth Deposit Growth - Overall · FY27 · High confidence 11-12%
    our guidance to market towards the resources side, 11% to 12% in deposit growth and 14% to 16% in advances growth. During current quarter also, we are going to align with this guidance, which we have given to the market.

    — Kalyan Kumar

Profitability - NIM

  • NIM Profitability - NIM · ongoing · High confidence 3% and above
    NIM will be 3% and above and still we are maintaining.

    — Kalyan Kumar

Profitability - ROA

  • ROA Profitability - ROA · ongoing · High confidence 1% and above
    ROA 1% and above, that also we have maintained and remain 1% and above.

    — Kalyan Kumar

Asset Quality - ECL

  • Shift to ECL Asset Quality - ECL · by 1st April '27 · High confidence 1st April '27
    we'll be easily able to shift to ECL from 1st April '27.

    — Kalyan Kumar

Recovery - Technical Written-off

  • Recovery from Technical Written-off Accounts Recovery - Technical Written-off · FY27 · Medium confidence ₹2,200 crores to ₹2,500 crores
    This year also, I'm expecting recovery of ₹2,200 crores to ₹2,500 crores out of technically written-off account.

    — Kalyan Kumar

Property Sales

  • Properties to Sell Property Sales · FY27 · Medium confidence 600 to 700 properties
    In the current financial year, we are targeting to sell 600 to 700 properties against 460 properties in the last financial year.

    — Kalyan Kumar

FCNR Deposits

  • FCNR(B) Mobilization FCNR Deposits · by September '26 · High confidence USD400 million
    FCNR (B) till now, we have mobilized USD8.4 million and we are expecting to mobilize USD400 million by September'2026.

    — Kalyan Kumar

Profitability - Yield on Advances

  • Overall Yield on Advances Profitability - Yield on Advances · by March '27 · Medium confidence up to 8%
    we expect that our yield will improve from 7.89% to anywhere between 8%, we are thinking that as of March '27, we will reach up to 8%.

    — Kalyan Kumar

Efficiency - Cost-to-Income Ratio

  • Cost-to-Income Ratio Reduction Efficiency - Cost-to-Income Ratio · FY27 · Medium confidence by 1.5% to 1.6% percentage points
    We are sure that in coming year, Bank will reduce cost-to-income ratio by 1.5% to 1.6%.

    — Kalyan Kumar

GIFT City - Deposits

  • Deposits from GIFT City GIFT City - Deposits · over the next few years · Low confidence USD200 million
    Deposit of USD200 million and trade book of USD500 million over the next few years, we are planning.

    — Kalyan Kumar

GIFT City - Trade Book

  • Trade Book from GIFT City GIFT City - Trade Book · over the next few years · Low confidence USD500 million
    Deposit of USD200 million and trade book of USD500 million over the next few years, we are planning.

    — Kalyan Kumar

What to watch in Q2 FY27

FCNR(B) Mobilization

by September '26
Current USD8.4 million
Target USD400 million

Why it matters

This is a specific, short-term target for a new funding source, indicating the bank's ability to attract foreign currency deposits.

FCNR (B) till now, we have mobilized USD8.4 million and we are expecting to mobilize USD400 million by September'2026.

Risks & concerns

  • Moderation in Liquidity Ratios (LCR, NSFR)

    medium

    LCR declined from 235% to 156% and NSFR from 147% to 128%, though management stated this was due to optimal deployment of high-quality liquid assets and still above regulatory requirements.

    Analyst acknowledged

  • Lower Treasury Income

    low

    Treasury income was ₹276 crores, less than previous year due to market conditions, but management expects moderation and improvement.

    Management acknowledged

  • Potential for Credit Quality Dilution with High Growth

    low

    Analyst questioned safeguards for credit rating standards given strong advance growth. Management emphasized robust underwriting, low stress in recent credit, and consistent improvement in slippage ratio.

    Analyst downplayed

Q&A highlights

8 direct
Capital Raising Plans Direct
We already have CRAR of 18.28% and CET1 of 16.24% In that way, we are having enough capital, and we don't need capital to support our growth guidance, which we have given to the market, we are having enough capital. So therefore, we don't have any plan for raising capital as of now.

Management clarified that despite board approval for a ₹7,000 crore capital raise, they currently have sufficient capital and no immediate plans for dilution, which is a positive signal for existing shareholders.

Asked by Tanya Kothari

Decline in LCR and NSFR Direct
Actually, first, we should understand what the optimum level for LCR and NSFR is and purpose behind keeping it, high-quality liquid assets for this LCR. So, comfort of having 215% and having CD ratio of 66% or 64% for any vibrant organization and growing organization, it is liability because those high-quality liquid assets and all those things comes with a cost. Therefore, those things must be deployed optimally so that we can get better return out of it.

Analyst raised a red flag about sharp declines in key liquidity ratios. Management explained it as an intentional strategy to optimize asset deployment for better returns, while assuring that ratios remain above regulatory requirements.

Asked by Tanya Kothari

Drivers of Strong Advance Growth and Credit Quality Safeguards Direct
Corporate loan book was ₹76,699 crores and currently, as of June '26, it is ₹1,12,500 crores. So, the growth is 46.52% to be precise. This is only due to low base effect... In RAM sector, if you see, our growth is 21.38%... as far as credit underwriting is concerned, I can tell you, we have done one analysis that the credit growth after 1st October will be ₹1,22,000 crores. Out of that, stress was very less and the slippage ratio, it is 0.29% this time.

Analyst questioned the sustainability and quality of the high advance growth. Management attributed it to a low base effect in corporate loans and strong RAM growth, while emphasizing robust underwriting and low stress in recent credit originations.

Asked by Tanya Kothari

Recovery from Technical Written-off Books Direct
For technical written-off book, we are having 32,900 plus crores in the PT and 9,200-odd numbers in our normal books... This year also, I'm expecting recovery of ₹2,200 crores to ₹2,500 crores out of technically written-off account.

Analyst sought clarity on recovery efforts from written-off assets. Management provided specific figures for the outstanding book and a clear target for recoveries in the current fiscal year, indicating a focus on improving asset quality.

Asked by Sushil Choksey

Cost-to-Income Ratio Reduction Strategy Direct
See, this is one of the efficiency areas, which is our priority... Now we are focusing upon non-interest income side, where we can maximize our fee-based income... We are sure that in coming year, Bank will reduce cost-to-income ratio by 1.5% to 1.6%.

Analyst probed the bank's strategy to achieve its sub-56% cost-to-income target. Management outlined a multi-pronged approach focusing on both non-interest income growth and operational cost curtailment, providing a specific target for reduction.

Asked by Amit Mishra

Progress on Insurance Joint Ventures Direct
Banks has approximately 26% stake in both the entities. Generali Central Life Insurance and Generali Central Non-Life Insurance Company. Previous year, it was under establishment. Now they are back in the business and this year, we are expecting a good amount of income from both Life and Non-Life businesses. Bank has invested ₹627 crores capital in both the companies.

Analyst inquired about the performance and capital commitment to the insurance JVs. Management confirmed the bank's stake, capital invested, and expressed optimism for significant income generation from these entities in the current year.

Asked by Ashok Ajmera

Overall Yield Improvement Strategy Direct
Yes, overall yield will go upward because under RAM, we are focusing on gold loan and SHG. As, we are bringing some structural changes that is, Head of these 2 divisions are going to report directly to ED... So the yield is also 8% plus, both in gold loan and SHG. So there, we expect that our yield will improve from 7.89% to anywhere between 8%, we are thinking that as of March '27, we will reach up to 8%.

Analyst asked about the future trajectory of overall yield. Management detailed a strategic focus on high-yielding segments like gold loans and SHG, supported by structural changes, to drive yield improvement to 8% by March '27.

Asked by Ashlesh Sonje

Quarter-on-quarter Credit Growth vs. Annualized Direct
Growth is not a challenge for Central Bank of India now. We have enough capital. We have enough resources and the momentum and credit underwriting quality, post disbursement monitoring part, all these things we have taken care of... Bank be able to maintain this growth rate, quarter-on-quarter growth will be approximately 3%.

Analyst highlighted a discrepancy between high annualized credit growth and lower quarterly growth. Management reassured that growth is not a challenge due to strong fundamentals and reiterated a target of approximately 3% QoQ growth.

Asked by Ashok Ajmera

2 min read 6 chapters

Detailed narrative

Robust Business and Advance Growth

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.

Improved Profitability and Asset Quality

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%.

Strong Capital Adequacy and Efficiency Focus

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.

Strategic Initiatives for Growth and Diversification

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.

Deposit Franchise Strength and Liquidity Management

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.

Recovery and Future Outlook

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.

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