CARE Ratings has reaffirmed its ‘CARE A1+’ rating for Central Bank of India’s (CBI) Certificate of Deposits (CD) programme worth ₹10,000 crore. The reaffirmation factors in the GoI’s continued support, CBI’s improved capitalization, established franchise, and diversified advances. The rating also considers moderate asset quality and profitability. Government’s shareholding stands at 89.27% as of September 30, 2025.
Rating Reaffirmation Details
CARE Ratings has reaffirmed the ‘CARE A1+’ rating assigned to Central Bank of India’s Certificate of Deposits (CD) programme, which amounts to ₹10,000 crore. This rating signifies a high degree of safety regarding the timely payment of financial obligations.
Key Rating Drivers
The rating reaffirmation considers several factors:
- Strong support from the Government of India (GoI), demonstrated through continued majority ownership (89.27% as of September 30, 2025) and previous capital infusions of ₹21,835 crore between FY16-FY23.
- Improvement in capitalisation levels due to equity infusion by GoI.
- Established pan-India business franchise and diversified advances book.
- Sizeable current account and savings account (CASA) proportion.
Factors to Watch
Key factors that could lead to a downgrade:
- Reduction in government support and ownership below 51%.
- Deterioration in asset quality, with gross non-performing assets (GNPA) exceeding 5% on a sustained basis.
- Deterioration in capitalisation levels with cushion above the minimum regulatory requirement remaining lower than 100 bps on a sustained basis.
Financial Performance and Ratios
Key financial highlights as of March 31, 2025:
- Total Income: ₹39,520 crore
- Profit After Tax (PAT): ₹3,785 crore
- Total Assets: ₹4,72,061 crore
- Gross NPA Ratio: 3.18%
- Net NPA Ratio: 0.55%
- Capital Adequacy Ratio (CAR): 17.02%
As of September 30, 2025:
- Gross NPA Ratio: 3.01%
- Net NPA Ratio: 0.48%
- Capital Adequacy Ratio (CAR): 17.34%
Source: BSE