Central Bank of India Q1FY27 profit up 13%; FY27 guidance issued

Central Bank of India reported a 13.26% rise in Q1FY27 net profit to ₹1324 crore, driven by a 15.70% increase in net interest income to ₹3914 crore. Total income grew 3.08% to ₹10678 crore, while operating profit declined 5.12% to ₹2186 crore. Asset quality improved with GNPA at 2.60% and NNPA stable at 0.49%. Global advances surged 28.58% to ₹354348 crore, and deposits grew 11.68% to ₹478972 crore. The bank issued FY27 guidance targeting loan growth of 14%-16%, deposit growth of 10%-12%, NIM above 3%, and Gross NPA below 2.55%.

*this image is generated using AI for illustrative purposes only.

Central Bank of India reported a net profit of ₹1324 crore for the first quarter ended June 30, 2026, reflecting a 13.26% increase from ₹1169 crore in the same period last year. The bank's total income grew by 3.08% year-on-year to ₹10678 crore, driven by a 15.70% rise in net interest income to ₹3914 crore. Operating profit declined marginally by 5.12% to ₹2186 crore. The Board of Directors approved the results at a meeting held on July 17, 2026, in Mumbai. Alongside the quarterly results, the bank also shared its outlook for FY27, projecting loan growth of 14%-16%, deposit growth of 10%-12%, net interest margin (NIM) above 3%, and Gross NPA below 2.55%. The audio recording of the conference/earnings call held with analysts and institutional investors on July 17, 2026, has been uploaded to the bank's website.

Q1FY27 Financial Highlights

The bank's financial performance for the quarter ended June 30, 2026, showed growth in core earnings despite a slight compression in margins. The following table summarises the key financial metrics:

Asset Quality and Provisioning

Central Bank of India's asset quality improved significantly during the quarter. The Gross Non-Performing Assets (GNPA) ratio improved to 2.60% from 3.13% in the same period last year. The Net Non-Performing Assets (NNPA) ratio remained stable at 0.49% YoY. The Provision Coverage Ratio stood at 95.86% as of June 30, 2026. Credit Cost for the quarter stood at 0.40%, down from 0.68% in the corresponding period last year.

Business Growth and Capital Ratios

The bank recorded robust business growth during the quarter. Total Global Business grew by 18.29% to ₹833320 crore. Global advances increased by 28.58% YoY to ₹354348 crore, while total deposits grew by 11.68% to ₹478972 crore. The CASA ratio stood at 46.61%. The bank's Capital to Risk-weighted Assets Ratio (CRAR) improved to 18.28%, with Tier 1 capital at 16.54%. Return on Assets (ROA) was reported at 1.00%, and Return on Equity (ROE) improved to 14.92%.

Alongside its quarterly results, Central Bank of India outlined its key targets for FY27. The bank aims to sustain momentum across lending and deposits while continuing to improve asset quality. The following table outlines the bank's FY27 guidance:

The filing was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank declared that the auditors' report on the standalone and consolidated financial results for the quarter ended June 30, 2026, contains an unmodified opinion. The results were reviewed by the Statutory Central Auditors. The statement of deviation or variation for the quarter confirmed no deviation in the use of funds raised, as the amount raised was nil. The filing was signed by Shri Chandrakant C Bhagwat, Company Secretary & Compliance Officer.

Historical Stock Returns for Central Bank of India

How will the bank manage the potential liquidity pressure given the wide gap between loan growth (14%-16%) and deposit growth (10%-12%) targets?

What specific sectors are driving the 28.58% surge in global advances, and are there rising concentrations of credit risk in any particular area?

With operating profit declining marginally despite income growth, what strategies will be employed to control operating expenses in the coming quarters?