Central Bank of India reported a 32.9% year-on-year surge in net profit for the second quarter of FY26, reaching Rs 1,213 crore, driven by improved asset quality and steady income growth. The bank’s net interest income declined 3.7% year-on-year to Rs 3,283 crore, while total income rose 4.1% to Rs 10,250 crore. Other income contributed Rs 1,507 crore, down 17% sequentially.
Gross non-performing assets (GNPA) fell to Rs 8,827 crore, or 3.01% of gross advances, compared to 4.59% a year earlier. Net NPAs dropped to Rs 1,364 crore, or 0.48%, from 0.69% in Q2FY25. Provision coverage ratio (PCR) without technical write-offs improved to 84.55%, while PCR with write-offs reached 96.88%. Credit cost declined sharply to 0.22%, reflecting better recoveries and lower slippages.
Total provisions for the quarter stood at Rs 314 crore, down from Rs 598 crore in Q2FY25. Profit before tax came in at Rs 1,471 crore, while the effective tax rate moderated to 17.6%, supporting bottom-line growth.
The bank’s total business expanded to Rs 7.38 lakh crore, up 14.4% year-on-year. Gross advances rose 16% to Rs 2.93 lakh crore, while deposits increased 13.4% to Rs 4.44 lakh crore. CASA deposits reached Rs 2.08 lakh crore, maintaining a healthy 46.7% share of total deposits despite a slight decline from 48.8% a year ago.
Net interest margin (NIM) compressed to 2.89% from 3.44% in Q2FY25, reflecting higher interest expenses, which grew 13.9% year-on-year to Rs 5,460 crore. Operating expenses rose to Rs 3,004 crore, with employee costs at Rs 1,893 crore and other administrative expenses at Rs 1,111 crore. The cost-to-income ratio increased to 62.72% from 57.19% in the year-ago quarter.
Return on assets improved to 1.01%, while return on equity rose to 14.22%, reflecting stronger profitability and capital efficiency. The bank’s capital adequacy ratio stood at 17.34%, with CET-1 at 14.98%, comfortably above regulatory requirements.
Earnings per share for the quarter was Rs 1.3, up from Rs 1.0 in Q2FY25. Book value per share rose to Rs 37.7, while adjusted book value reached Rs 36.6. Government holding remained stable at 89.27%.
The bank’s branch network expanded to 4,556, with 4,174 ATMs across the country. With sustained improvement in asset quality, profitability, and capital buffers, Central Bank of India continues to consolidate its turnaround, positioning itself for stronger growth in the second half of FY26.
