Central Bank of India has received a rating reaffirmation from India Ratings and Research Private Limited, which maintained the bank's IND AA/Stable rating for both its long-term issuer rating and Basel III Tier-II bonds. The rating agency cited the bank's improved capital position and asset quality as key factors for the reaffirmation.

Rating Details and Rationale

The rating reaffirmation encompasses two key instruments as detailed below:

The analytical approach continues to factor in the support available from the Government of India, which holds an 89.27% stake in Central Bank of India.

Strengthened Capital Position

Central Bank of India demonstrated significant improvement in its capital metrics during the review period. The bank's capital adequacy has shown consistent enhancement across multiple parameters:

The bank has achieved improved profitability and internal accrual generation, with a return on assets of 1.00% in the most recent quarter.

Asset Quality Improvements

The rating agency highlighted substantial improvements in Central Bank of India's asset quality metrics. The bank's gross non-performing assets ratio declined to 3.01% in the latest reporting period.

The provision coverage ratio improved to 84.40%, indicating adequate provisioning buffers.

Liability Franchise and Liquidity Position

Central Bank of India maintained a strong deposit franchise with its CASA deposit ratio at 46.80% in the most recent quarter. The bank's deposit base demonstrates granularity with bulk deposits contributing below 5.00% to the total deposit base.

The bank's liquidity coverage ratio stood at 241.90%, well above the regulatory requirement of 100.00%.

Outlook

India Ratings expects Central Bank of India to maintain adequate profitability over the medium term. The rating agency will continue to monitor the bank's performance, particularly in areas such as franchise growth, profitability, and capital buffers, which could influence future rating actions.

Central Bank of India has announced the appointment and re-appointment of statutory central auditors for the financial year 2025-26, effective December 2025. The appointments were made following receipt of approval from the Reserve Bank of India, as disclosed under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Auditor Appointments for FY2025-26

The bank has appointed four chartered accountant firms as statutory central auditors, with three continuing from previous terms and one new appointment. The appointed firms include:

Key Changes in Auditor Panel

M/s Garg Ashok Company, Chartered Accountants, Gurugram has been appointed as the new statutory central auditor of the bank, replacing M/s AR Co., Chartered Accountants, New Delhi, which has retired from the position.

Auditor Firm Profiles

The bank has provided detailed profiles of all appointed statutory central auditors:

Geographic Distribution

The appointed auditor firms are strategically distributed across different states, with representation from Chhattisgarh, Uttar Pradesh, Rajasthan, and Haryana. This geographic diversification ensures comprehensive audit coverage across the bank's operations.

Regulatory Compliance

The appointment of statutory central auditors represents the bank's compliance with regulatory requirements and commitment to maintaining robust audit practices. The selection process involved obtaining necessary approvals from the Reserve Bank of India, ensuring adherence to banking sector audit guidelines and standards.