Central Bank of India

Central Bank of India reported strong Q2 FY2027 results, with total business growing by 20.54% to Rs.8,89,541 Crores and domestic deposits increasing by 14.41% to Rs.5,08,509 Crores. CASA deposits stood at 44.65% of total deposits, slightly below the market guidance of 48% due to FCNR(B) mobilization. Advances grew by 29.83% to Rs.3,81,032 Crores, with RAM (Retail, Agriculture, MSME) segments showing robust growth of 21.11%. Net profit increased by 21% to Rs.1,469 Crores, while operating profit rose by 27% to Rs.2,268 Crores. Net interest income grew by 26.28% to Rs.4,146 Crores. The cost-to-income ratio remained at 58.95%, slightly above the guidance of less than 56%. Gross NPA was 2.39%, aligning with the market guidance of below 2.50%, and net NPA was 0.31%, showing improvement. The bank highlighted growth in gold loans, SHG (Self-Help Groups) financing, and digital initiatives to enhance CASA and cross-selling. Management emphasized continued focus on rural and semi-urban areas, with plans to open 116 gold loan branches and expand digital services. The bank also noted challenges in treasury due to rising interest rates and inflation, but expressed confidence in maintaining profitability through strategic reinvestment. ECL provisioning requirements were estimated at Rs.5,000 to Rs.5,500 Crores, with the bank confident in meeting these through its earnings. The discussion concluded with management reaffirming commitment to sustaining growth and efficiency improvements.

The document highlights strong growth in business, deposits, and profitability, along with improvements in asset quality and strategic initiatives, indicating a positive tone.