Central Bank of India posts 21% profit rise, net profit hits ₹1,469 crore

Central Bank of India’s net profit jumped 21% to ₹1,469 crore in the September quarter of FY27. The bank posted ₹1,324 crore net profit in the same quarter last fiscal, highlighting the scale of the improvement. The rise follows a year‑on‑year increase in total income to ₹11,737 crore from ₹10,212 crore. Interest income climbed to ₹10,357 crore, up from ₹8,743 crore, driven by a 30% expansion in loans, as reported by Economic Times. Net interest income grew 26% to ₹4,146 crore, while operating profit rose to ₹2,268 crore against ₹2,186 crore a year earlier. The bank’s cost‑to‑income ratio improved to 58.95% from 62.42%, reflecting better efficiency. Gross non‑performing assets fell to 2.39% of advances from 3.01%, and net NPAs dropped to 0.31% from 0.48%. Provisioning for bad loans increased to ₹490 crore, up from ₹144 crore in the same quarter last year. The provision coverage ratio reached 97.16%, a 28‑basis‑point rise, and the capital‑to‑risk‑weighted assets ratio improved to 17.68% from 17.48%, strengthening the bank’s capital position.

Context

Bank earnings in India are closely tied to loan growth and the health of asset portfolios. The drop in NPAs and higher provisioning show CBI is tightening credit risk after years of stress in public banks. Such results are seen as a sign of stabilising profitability across the sector.