State-owned lender Central Bank of India reported a strong improvement in profitability in the third quarter ended December 2025, posting a 32% year-on-year rise in net profit to ₹1,263 crore, aided by lower bad loans and reduced provisioning.
The Mumbai-based bank had reported a net profit of ₹959 crore in Q3 of the previous fiscal year, according to a regulatory filing.
Total Income and Interest Earnings Rise
During the quarter, total income increased to ₹10,969 crore, compared with ₹9,739 crore in the same period last year.
The bank’s interest income rose to ₹9,033 crore, up from ₹8,509 crore a year ago, reflecting growth in advances and deposits.
However, Net Interest Income (NII) saw a marginal decline to ₹3,502 crore, from ₹3,540 crore in Q3 of the previous year. As a result, the net interest margin (NIM) eased to 2.96%, compared with 3.45% a year earlier.
Operating Profit Strengthens
Despite pressure on margins, the bank’s operating profit improved to ₹2,293 crore, up from ₹1,963 crore in December 2024, supported by higher business volumes and cost discipline.
Sharp Improvement in Asset Quality
Asset quality continued to strengthen during the quarter.
- Gross NPAs declined to 2.7% of total loans at the end of December 2025, from 3.86% a year earlier
- Net NPAs improved to 0.45%, compared with 0.59% in the year-ago period
With bad loans coming down, provisions for NPAs fell to ₹276 crore, against ₹310 crore in Q3 of the previous financial year.
The bank’s provision coverage ratio (PCR) improved to 96.69%, up from 96.54% a year ago.
Capital Position and Balance Sheet Growth
The capital adequacy ratio (CAR) stood at 16.13% at the end of December 2025, marginally lower than 16.43% a year earlier.
The bank’s total business (credit plus deposits) increased to ₹7.74 lakh crore, compared with ₹6.69 lakh crore in the corresponding quarter last year.
- Gross advances rose 19.48% YoY to ₹3.24 lakh crore
- Total deposits grew 13.24% YoY to ₹4.51 lakh crore
Nine-Month Performance
For the nine months ended December 2025, Central Bank of India reported a net profit of ₹3,644 crore, compared with ₹2,752 crore in the same period last year.
Total income for the nine-month period rose to ₹31,593 crore, from ₹29,088 crore a year earlier.
Outlook
The strong improvement in asset quality, lower provisioning, and healthy balance sheet growth have supported Central Bank of India’s profitability in Q3. While margin pressures remain a key watchpoint, sustained credit growth and declining bad loans are expected to remain central to the bank’s performance trajectory in the coming quarters.
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