Recovery from write‑offs and strong treasury gains lifted Central Bank of India’s profitability in the December 2025 quarter, even as net interest income (NII) remained under pressure. The bank reported a sharp improvement in bottom‑line performance of 32% rise to Rs 1,263 crore in Q3 FY2026 (Rs 959 crore Q3 FY2025), driven primarily by Rs 1,109 crore (Rs 482 crore) recovered from written‑off and NPA accounts, alongside a 35% jump in treasury income to Rs 302 crore (Rs 224 crore). The state-run bank reported a marginal decline of 1% in its NII to Rs 3,502 crore (Rs 3,540 crore) for the December 2025 quarter.
Recovery and Treasury Gains
“Recovery from write-off and treasury gains were the key profit engines for the quarter,” said Kalyan Kumar, MD & CEO, Central Bank of India.
Operationally, the bank delivered steady growth across core metrics. Gross advances rose 19.48% year‑on‑year to Rs 3.23 lakh crore, supported by an aggressive outreach programme across more than 100 centres targeting retail, agriculture and MSME borrowers. The bank also improved turnaround times for credit sanctions, helping lift average credit outstanding. CASA deposits grew 8.54%, with savings deposits rising over 7.5%, while the CD ratio strengthened to 72% from 66% in September 2025.
Despite missing its NIM guidance of above 3%, the bank maintained margins at 2.96% and expects to reach the 3% mark as deposit costs moderate in the coming quarters. The cost‑to‑income ratio improved by 99 basis points to 57.84%, while return on assets rose to 1.01% and return on equity to 14.47%. Capital adequacy remains comfortable at 16.13%, with no fund‑raising required for the current financial year. The bank’s asset quality also improved, with net NPA down 14 basis points at 0.45%.
Asset Quality Improves
Non‑interest income surged 31.7%, aided by insurance fee income of Rs 42 crore and higher processing charges. The bank is also preparing for ECL provisioning, having already set aside Rs 1,525 crore, with the remaining Rs 2,675 crore expected to be met by April 2027.
On the business front, retail continues to be dominated by housing loans, which form 59% of the portfolio, with strong traction in premium ticket sizes. The bank also sees significant potential in vehicle, education and gold loans. The RAM segment grew by 18% to Rs 2.23 lakh crore. The corporate loan sanctions also remained healthy, with an undisbursed pipeline of Rs 24,000–25,000 crore. The corporate loan book rose 23% to over Rs one lakh crore. The acceleration in the corporate loan book shifted the RAM–Corporate Loan mix to 69:31 in December 2025, compared with 70:30 a year earlier.
“With technology investments accelerating, digital journeys scaling up, and CASA mobilisation campaigns underway, we expect profitability momentum to sustain in the coming quarters,” said Kumar.