Central Bank of India reported a 14.43% year-on-year increase in total business, reaching ₹7,37,938 crores. Deposits grew by 13.40% to ₹4,44,450 crores, with CASA at 46.83%. Gross advances increased by 16% to ₹2,93,488 crores. Net profit saw a 32.86% increase, totaling ₹1,213 crores. Gross NPA reduced to 3.01%, while Net NPA decreased to 0.48%. The bank focuses on digital transformation and RAM segment growth.
Financial Performance Overview
Central Bank of India’s total business reached ₹7,37,938 crores, a 14.43% year-on-year increase. Total deposits grew by 13.40%, amounting to ₹4,44,450 crores. The CASA ratio stood at 46.83%, with CASA deposits reaching ₹2,07,616 crores, an increase of 8.55%.
Gross advances increased by 16% to ₹2,93,488 crores, with RAM advances growing by 15.23%, reaching ₹2,09,948 crores. Total income grew by 4.07% to ₹10,250 crores, while net profit increased by 32.86% to ₹1,213 crores.
Gross NPA reduced to 3.01%, a 158 basis points year-on-year reduction. Net NPA reduced by 21 basis points to 0.48%.
Asset Quality and Key Ratios
Return on Assets (ROA) increased to 1.01%, up by 17 basis points. Return on Equity (ROE) increased by 155 basis points to 14.22%. Yield on Advances decreased to 8.36%. Net Interest Margin (NIM) reduced by 52 basis points to 2.89%. Credit Cost reduced by 34 basis points to 0.21%. Slippage Ratio reduced by 8 basis points to 0.30% year-on-year. Provisions decreased to ₹573 crores, a 54% year-on-year reduction.
Strategic Focus and Vision
The bank aims to become a digitally-enabled, customer-centric organization. Key focus areas include optimizing returns to stakeholders and revisiting business processes. The bank emphasizes the importance of technology and aims to improve customer onboarding experiences, particularly in CASA. Central Bank of India is also focusing on RAM (Retail, Agriculture, and MSME) segment growth.
Growth and Future Outlook
Central Bank of India is set to focus on Agriculture and MSME sectors, with plans to support mass segments through technology. The bank aims to finance value chain activities and cold chain financing. It plans to strengthen branches in active clusters and leverage government initiatives. The bank is looking at improving it’s Cost to Income ratio and is looking to improve it to 54% to 55%.
Recovery and ECL Provisioning
The bank aims to recover more than ₹2000 crores during the financial year from TWO (Write Off Accounts). The bank has provided for stage 3 NP assets and has started providing for standard restructured accounts and has made a provision of ₹1150 crores. They anticipate spending ₹3300-₹3500 crores on this. The bank is hoping for recoveries of around ₹2000 to ₹2200 crores from aviation accounts.
Source: BSE
