CRISIL Ratings has reaffirmed its ‘Crisil AA/Stable’ rating on Central Bank of India’s corporate credit rating and Tier-II bonds (under Basel III). The ‘Crisil AA-/Stable’ rating on Tier-I bonds (under Basel III) was also reaffirmed. Additionally, the rating on the certificate of deposits programme remains at ‘Crisil A1+’. The outlook reflects expectations of continued strong support from the Government of India (Gol) and adequate resource profile.
Ratings Reaffirmed
CRISIL Ratings has reaffirmed its ratings for Central Bank of India, indicating a stable outlook for the bank’s financial instruments. The key ratings reaffirmed are:
- Corporate Credit Rating: Crisil AA/Stable
- Tier-II Bonds (under Basel III): Crisil AA/Stable
- Tier-I Bonds (under Basel III): Crisil AA-/Stable
- Certificate of Deposits: Crisil A1+
Capital Adequacy
The bank’s capital position is considered adequate, supported by consistent internal accruals and equity infusions from the Government of India (Gol). Between fiscals 2018 and 2021, the government injected Rs 19,903 crore. As of December 31, 2025, Tier 1 and CAR stood at 13.9% and 16.1% respectively, as compared to 14.7% and 17.0% as of March 31, 2025.
Asset Quality
Asset quality metrics continue to show improvement. Gross Non-Performing Assets (NPAs) stood at 2.7% as of December 31, 2025, a decrease from 3.2% as of March 31, 2025. Net NPAs also improved, reaching 0.4% from 0.5% during the same period, primarily due to increased Provision Coverage Ratio (PCR).
Profitability
Central Bank of India has reported profits since fiscal 2022, driven by lower credit costs and improved net interest margins (NIMs). The provision coverage ratio (PCR) was 83.8% as of December 31, 2025.
Government Support
The ratings reflect the expectation of strong support from the Government of India (Gol), which is the majority stakeholder. The government infused a total of Rs 19,903 crore into Central Bank of India between fiscals 2018 and 2021, enhancing its capital ratios. As of December 31, 2025, Tier 1 and overall CAR were 13.9% and 16.1%, respectively.
Resource Profile
As of December 31, 2025, Central Bank of India had 4,567 branches, with approximately 65% located in rural and semi-urban areas. CASA deposits accounted for 47.0% of total deposits as of December 31, 2025.
ESG Focus
Central Bank of India is increasingly focused on Environmental, Social, and Governance (ESG) factors. It targets Net Zero Scope 1 emissions by fiscal 2028 and a 50% reduction in Scope 2 emissions within five years from the fiscal 2024 baseline. In fiscal 2025, the bank disbursed Rs 2,932 crore towards renewable energy projects and invested approximately Rs 249 crore in sovereign green bonds.
Source: BSE
