Central Bank Of India June Quarter Net Jumps 33% As Provisions Drop

Central Bank Of India Ltd. on Saturday reported a 32.8% rise in net profit for the April–June quarter, supported by a sharp drop in provisions and higher other income. Net profit stood at ₹11.69 million, up from ₹8.80 million a year ago.

Provisions and contingencies more than halved to ₹5.21 million from ₹11.91 million in the same quarter last year. The bank’s provision coverage ratio remained high at 97.02% as of June 30.

Other income surged 53.3% on year to ₹17.86 million, supporting overall revenue. Total income for the quarter rose 9.2% to ₹103.74 million.

Asset quality improved, with the gross non-performing assets ratio easing to 3.13% from 3.18% sequentially. The net non-performing assets ratio also declined to 0.49% from 0.55%. Provisions for bad loans dropped 64.6% to ₹4.68 million. Recoveries came in at ₹3.72 million, while regular write-offs stood at ₹330,000—up from ₹280,000 a year earlier.

The slippage ratio was stable at 0.35% compared to 0.34% a year ago. The agriculture sector remained the biggest contributor to fresh non-performing assets, followed by micro, small, and medium enterprises.

Operating expenses, however, rose 5.3% on year to ₹28.65 million, though they were down 10.7% from the previous quarter. Total expenses increased 7.5% on year to ₹80.70 million. The bank’s Basel III capital adequacy ratio stood at 17.66% at the end of June.

Interest income for the quarter rose 0.4% to ₹85.89 million. The bank’s net profit margin improved to 11.27% from 9.26% a year ago. It also declared an interim dividend of ₹0.20 per share for 2025–26 .

Total deposits rose 11.4% on year to ₹4.29 trillion. Current and savings account deposits grew 6.2% to ₹2.01 trillion. The CASA ratio, however, declined 231 basis points to 46.88%.

Gross advances increased to ₹2.76 trillion from ₹2.51 trillion a year ago.

For 2025-26, the bank expects deposit growth of 10–12% and aims to keep its net interest margin above 3%. It also guided for gross NPAs below 3% and net NPAs below 0.45%. For the June quarter, the net interest margin stood at 3.16%.