Forever News
Mumbai: Central Bank of India delivered a resilient and confidence-building performance in the third quarter, reflecting steady progress in profitability, asset quality and balance-sheet strength despite a challenging interest-rate environment. For the quarter ended December, the public sector lender reported a sharp year-on-year rise in net profit to around ₹1,260 crore, driven largely by better recoveries, controlled costs and a significant reduction in bad loans. The improvement in earnings underlines the bank’s ongoing turnaround story and its ability to convert balance-sheet clean-up into bottom-line growth.
Central Bank of India Scripts a Strong Q3.
Total income for the quarter rose in double digits, supported by growth in advances, deposits and non-interest income. While interest income remained stable, net interest income saw marginal pressure as lending rates stayed competitive and funding costs remained elevated. This led to a slight moderation in net interest margins, indicating that while core lending activity remains strong, margin expansion is currently constrained by market conditions. However, the impact of softer margins was effectively offset by improved operating efficiency and lower credit costs.
A key highlight of the quarter was the continued strengthening of asset quality. Gross non-performing assets declined to about 2.7 percent, marking a sharp improvement from the previous year and reflecting disciplined credit underwriting and focused recovery efforts. Net NPAs also moved lower, reinforcing the bank’s progress in reducing legacy stress. The provision coverage ratio remained comfortable, signalling prudent risk management even as overall stress levels eased. This improvement in asset quality has directly contributed to the surge in profitability by lowering provisioning requirements.
On the business growth front, Central Bank of India maintained healthy momentum, with advances and deposits recording solid year-on-year growth. The expansion points to improving franchise strength, better deposit mobilisation and increasing traction across retail and corporate segments. The bank’s total business grew at a robust pace, providing a strong base for future earnings and cross-selling opportunities.
Capital adequacy remained within regulatory norms, offering comfort as the balance sheet continues to expand. The stable capital position, coupled with improving asset quality, places the bank in a better position to pursue growth without compromising financial stability. The market reaction to the results was cautiously positive, with investors taking note of the strong profit growth and sustained clean-up of the loan book, while remaining watchful of margin trends.
Overall, the Q3 performance reflects a bank that is steadily consolidating its turnaround. Strong profitability, improving asset quality and consistent business growth point to operational resilience. Going ahead, the key focus areas will be stabilising margins, sustaining credit growth without asset quality slippages, and leveraging digital and operational efficiencies to support long-term profitability.
