Central Bank of India Advances Surge 19.6% as CASA Ratio Declines

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Overview

Central Bank of India reported a 15.8% year-over-year increase in total business to ₹7.74 lakh crore for Q3 FY26. Gross advances surged 19.57%, indicating robust credit demand. However, lower-cost CASA deposits grew slower, causing the CASA ratio to slip to 47.12% from 49.18% a year ago. This update follows a strong Q2 net profit jump of 32.8%.

Central Bank of India posted a 15.8% year-over-year expansion in total business for the third quarter, reaching ₹7.74 lakh crore as of December 31, 2025. The state-owned lender's performance was buoyed by healthy growth across both advances and deposits.

Lending Accelerates
Gross advances surged by a notable 19.57% compared to the previous year, reaching ₹3.24 lakh crore. This indicates strong credit demand within the economy and outpaced deposit growth, pushing the bank's credit-deposit ratio to 72.06%. This ratio represents an improvement of 381 basis points from the prior year's period.

Deposit Growth Slows
Total deposits saw a rise of 13.23% year-over-year to ₹4.51 lakh crore. However, the growth in low-cost Current Account Savings Account (CASA) deposits lagged, increasing by only 8.53% to ₹2.12 lakh crore. This divergence led to a decline in the CASA ratio to 47.12% from 49.18% in the same quarter last year, a reduction of 206 basis points.

Q2 Profitability Context
This Q3 update follows strong results for the second quarter of FY26. Central Bank of India reported a 32.8% year-over-year jump in net profit, reaching ₹1,212.8 crore for the July-September period. Net interest income, however, saw a slight dip of 3.7% due to margin pressures. The bank maintained a robust provision coverage ratio of 96.88%.

Market Reaction
Shares of Central Bank of India traded marginally lower following the Q3 business update. The stock has seen a gain of 4.91% over the past month.

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