Whalesbook
Profit Tumbles Amid Strong Core Income Growth
Central Bank of India announced its fourth-quarter results for FY26 on April 30, revealing a 30% year-on-year drop in net profit to ₹724.4 crore. This decline occurred even as the bank's net interest income (NII), its primary source of earnings from lending, surged by 17.8% to ₹4,002 crore. The robust NII growth signals sustained expansion in its core lending operations.
Stable Asset Quality and Balance Sheet Expansion
The bank's asset quality remained largely steady. Gross non-performing assets (NPAs) saw a marginal improvement, decreasing to 2.67% from 2.70% in the previous quarter. Net NPAs, however, nudged up slightly to 0.49% from 0.45% sequentially. On the balance sheet front, total deposits grew by 13.38% year-on-year to ₹4,67,923 crore, with low-cost CASA deposits rising 9.75%. Gross advances also expanded by 9.75%.
Dividend and Capital Raising Plans
In a move to reward shareholders, the board approved a fourth interim dividend of 6%, translating to ₹0.60 per equity share of face value ₹10 for FY26. May 8, 2026, has been set as the record date for this dividend. Looking ahead to FY27, the bank has ambitious plans to raise capital amounting to ₹7,000 crore. This significant fundraise may be executed through various instruments including a follow-on public offer (FPO), rights issue, qualified institutional placement (QIP), or a combination thereof, as well as Basel III-compliant bonds, subject to regulatory approvals.
The bank's shares concluded Thursday, April 30, trading marginally higher by 0.52% on the NSE, closing at ₹36.43. Investors will closely monitor the bank's strategy for its upcoming capital raise, which is crucial for supporting future growth and meeting regulatory requirements.