Central Bank of India Q2 Results FY27: Net Profit Rises 21.1% to ₹1,469 Crore, NII Grows 26.3%
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Central Bank of India reported a 21.1% year-on-year increase in net profit to ₹1,469 crore for the second quarter of the financial year 2026-27 (Q2 FY27), supported by higher net interest income and strong growth in advances. The bank’s net profit also increased 11% sequentially from ₹1,324 crore in the June 2026 quarter, showing an improvement in its quarterly performance.
The bank’s net interest income (NII), which is the difference between interest earned and interest paid, increased 26.3% year-on-year to ₹4,146 crore. Operating profit also grew 26.9% to ₹2,268 crore. On a quarter-on-quarter basis, NII increased 5.9% from ₹3,914 crore, while operating profit rose 3.8%.
Central Bank of India’s net interest margin (NIM) improved to 3.01% from 2.89% in the corresponding quarter last year. However, non-interest income declined 6.1% to ₹1,380 crore. Treasury income fell 31.2% to ₹128 crore during the quarter, partly offsetting the growth in the bank’s core interest income.
The bank reported strong growth in its overall business. Global advances increased 29.8% year-on-year to ₹3.81 lakh crore, while domestic deposits grew 14.4% to ₹5.09 lakh crore. As a result, the bank’s total global business, which includes advances and deposits, increased 20.5% to ₹8.90 lakh crore.
The retail, agriculture and micro, small and medium enterprises (MSME) portfolio recorded combined growth of 21.1% year-on-year. Retail advances increased 24.5%, agriculture advances grew 19.9%, and MSME advances rose 17.4%. The growth indicates an expansion in lending across the bank’s major business segments.
The bank’s current account and savings account (CASA) deposits increased 9.2% year-on-year to ₹2.27 lakh crore. However, the CASA ratio declined to 44.65% from 46.83% a year earlier. This means that current and savings account deposits accounted for a smaller share of the bank’s total deposits compared with the previous year.
Interest income increased 18.5% to ₹10,357 crore during the September quarter. Interest earned on advances rose 27.6% to ₹7,231 crore, supporting the overall growth in interest income. Meanwhile, interest expenses increased 13.7% to ₹6,211 crore, a slower rate than interest income growth. The bank’s cost of deposits also declined to 4.60% from 4.88% in the corresponding quarter last year.
The bank’s cost-to-income ratio improved to 58.95% from 62.42% a year earlier. A lower ratio indicates that the bank is spending a smaller proportion of its income on operating expenses. However, the ratio remained above the bank’s full-year target of less than 56%.
Central Bank of India’s capital adequacy ratio stood at 17.68% at the end of September 2026, compared with 17.34% a year earlier and 18.28% at the end of the June quarter. The Common Equity Tier 1 (CET-1) ratio, which measures the bank’s core capital strength, increased to 15.97% from 14.98% a year earlier. However, it declined from 16.54% in the preceding quarter.
The bank’s average liquidity coverage ratio (LCR) declined to 155.17% from 241.96% a year earlier. The net stable funding ratio stood at 126.38%, compared with 150.47% in the corresponding period last year. These ratios are important indicators of a bank’s ability to manage short-term liquidity requirements and maintain stable funding.
Asset quality improved during the September quarter. The gross non-performing asset (GNPA) ratio declined to 2.39% of gross advances from 3.01% a year earlier. The net non-performing asset (NPA) ratio also improved to 0.31% from 0.48% during the same period.
The provision coverage ratio increased to 97.16% from 96.88% a year earlier, indicating that the bank maintained a higher level of provisions against its non-performing loans. The quarterly slippage ratio, which measures the rate at which loans turn into non-performing assets, declined to 0.24% from 0.30%.
The bank’s return on assets (ROA), which measures how effectively it uses its assets to generate profit, stood at 1.03% in Q2 FY27, compared with 1.01% in the corresponding quarter last year.
Click here to download Balance Sheet and Financial Results of Central Bank of India
