How did Central Bank of India's net profit rise 33% to Rs 1,169 crore in Q1 FY26?
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Synopsis
In a stunning performance, the Central Bank of India has reported a substantial 33% increase in net profit, reaching Rs 1,169 crore for Q1 FY26. This financial milestone reflects the bank's resilience and ability to enhance asset quality amidst market fluctuations.
Key Takeaways
- Net profit rose to Rs 1,169 crore in Q1 FY26.
- 33% year-on-year increase in net profit.
- GNPA improved to 3.13%.
- Deposits increased by 11.41% YoY.
- Capital Adequacy Ratio strengthened to 17.6%.
Mumbai, July 19 (NationPress) The Central Bank of India announced a remarkable 33 percent year-on-year (YoY) increase in net profit, amounting to Rs 1,169 crore for the first quarter of FY26, as disclosed in an exchange filing on Saturday.
In the same quarter last year (Q1 FY25), the public sector bank recorded a net profit of Rs 880 crore.
Total income for the quarter ending June 30 surged to Rs 10,374 crore, up from Rs 9,500 crore in Q1 FY25. Interest income also saw an improvement, rising to Rs 8,589 crore, compared to Rs 8,335 crore in the previous year.
Additionally, operating profit climbed to Rs 2,304 crore, an increase from Rs 1,933 crore in the same quarter last fiscal year.
The bank's Net Interest Income (NII) for the June quarter (Q1 FY26) reached Rs 3,383 crore.
Notably, the asset quality of the public sector lender saw significant enhancement during this quarter.
According to the filing, the Gross Non-Performing Assets (GNPA) fell to 3.13 percent of gross advances, down from 4.54 percent a year prior.
In the same vein, the Net NPA declined to 0.49 percent, compared to 0.73 percent in Q1 FY25.
As a direct consequence of the improved asset quality, provisions and contingencies were nearly halved to Rs 521 crore, down from Rs 1,191 crore in the same quarter last year.
The Provision Coverage Ratio (PCR) improved by 85 basis points to 97.02 percent, up from 96.17 percent in the year-ago period.
On another positive note, the bank’s gross advances grew by 9.97 percent year-on-year, reaching Rs 2,75,595 crore, up from Rs 2,50,615 crore, while total business expanded by 10.84 percent to Rs 7,04,485 crore, compared to Rs 6,35,564 crore at the end of June 2024.
Total deposits increased by 11.41 percent YoY, amounting to Rs 428,890 crore, up from Rs 384,949 crore in Q1 FY25.
The Capital Adequacy Ratio (CAR) improved to 17.6 percent, rising from 15.6 percent in the same quarter of the previous fiscal.
Point of View
It's imperative to recognize the Central Bank of India's strong financial results as a testament to effective management and strategic growth. The improvements in asset quality and net profits indicate a robust banking sector that is adapting well to economic challenges. This performance should inspire confidence among stakeholders and the broader market.
NationPress
19/07/2025
Frequently Asked Questions
What was the net profit of Central Bank of India in Q1 FY26?
The net profit of Central Bank of India in Q1 FY26 was Rs 1,169 crore, reflecting a 33% increase compared to the previous year.
How did the asset quality of the bank change?
The bank's Gross Non-Performing Assets (GNPA) declined to 3.13%, from 4.54% the previous year, indicating improved asset quality.
What is the significance of the Capital Adequacy Ratio (CAR)?
The Capital Adequacy Ratio (CAR) is a measure of a bank's financial strength, and it improved to 17.6% for Central Bank of India, enhancing its stability.
How much did total deposits increase in Q1 FY26?
Total deposits for Central Bank of India rose by 11.41% year-on-year, reaching Rs 428,890 crore in Q1 FY26.
What was the trend in interest income for the bank?
Interest income for Central Bank of India increased to Rs 8,589 crore in Q1 FY26, compared to Rs 8,335 crore in the previous year.
