Central Bank of India Profit Soars 32% on Strong NPA Reduction

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AuthorRiya Kapoor|Published at:
Central Bank of India Profit Soars 32% on Strong NPA Reduction
Overview

Central Bank of India reported a significant 32% year-on-year profit surge to ₹1,263 crore for Q3 FY25. This strong performance was primarily driven by a substantial improvement in asset quality, with gross NPAs falling to 2.7% and net NPAs to 0.45%. Despite a marginal dip in Net Interest Income, the bank's overall financial health shows marked improvement.

Profit Leaps Amid Asset Quality Gains

Central Bank of India announced a robust 32% jump in net profit, reaching ₹1,263 crore for the third quarter ending December 2025. This marks a significant improvement from the ₹959 crore profit recorded in the same period last year. The Mumbai-based public sector lender benefited from a substantial reduction in non-performing assets (NPAs), bolstering its financial performance.

Income and Margin Trends

Total income for the quarter rose to ₹10,969 crore, up from ₹9,739 crore year-on-year. While interest income saw an increase, the Net Interest Income (NII) experienced a marginal decline to ₹3,502 crore from ₹3,540 crore. Consequently, the Net Interest Margin (NIM) eased to 2.96% from 3.45% in the prior year's comparable quarter. The bank's operating profit, however, improved to ₹2,293 crore from ₹1,963 crore.

Asset Quality Strengthens

The bank made significant strides in cleaning up its balance sheet. Gross NPAs declined to 2.7% of total loans by December 2025, a notable drop from 3.86% a year earlier. Net NPAs also fell to 0.45% from 0.59%. Provisions for NPAs eased to ₹276 crore, reflecting improved asset quality. The Provision Coverage Ratio improved slightly to 96.69%, indicating a stronger buffer against potential loan losses.

Business Growth Continues

Central Bank of India demonstrated healthy business expansion. Total business, a mix of credit and deposits, grew to ₹7,74,106 crore from ₹6,68,686 crore. Gross advances surged by 19.48% to ₹3,23,531 crore, while total deposits increased by 13.24% to ₹4,50,575 crore. For the nine months of the fiscal year, net profit stood at ₹3,644 crore, up from ₹2,752 crore in the previous year.

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