Central Bank of India has received a rating reaffirmation from CRISIL Ratings Limited on January 22, 2026, with the rating agency maintaining its AA/Stable outlook across multiple financial instruments. The reaffirmation reflects the bank's continued improvement in key financial metrics and the expected strong support from its majority stakeholder, the Government of India.

Rating Action Details

CRISIL has reaffirmed ratings across Central Bank of India's key financial instruments, demonstrating confidence in the bank's credit profile:

The rating agency also withdrew its rating on ₹500.00 crores of Tier II bonds at the bank's request, as the outstanding amount against these instruments is nil.

Improved Asset Quality Performance

Central Bank of India has demonstrated significant improvement in asset quality metrics. Gross non-performing assets (NPAs) declined to 2.70% as of December 31, 2025, compared to 3.20% as of March 31, 2025. Net NPAs improved further to 0.40% from 0.50% during the same period, supported by an increased provision coverage ratio of 83.80%.

The bank's slippage ratio showed structural improvement, declining to 1.00% of net opening advances in the first nine months of fiscal 2026, compared to 1.40% in fiscal 2025. This improvement was supported by write-offs and recoveries of ₹1,280.00 crores and ₹877.00 crores respectively during the nine-month period.

Strong Financial Performance

The bank maintained its profitability streak for nineteen consecutive quarters, reporting net profit of ₹3,644.00 crores in the first nine months of fiscal 2026. Return on assets improved to 1.00% (annualized) from 0.80% in fiscal 2025, demonstrating enhanced operational efficiency.

Government Support and Capital Adequacy

CRISIL highlighted the expected strong support from the Government of India, which holds an 89.27% stake as of December 31, 2025. The government has infused ₹19,903.00 crores in the bank between fiscals 2018 and 2021, significantly improving capital ratios. The bank's Tier 1 and overall capital adequacy ratios stood at 13.90% and 16.10% respectively as of December 31, 2025.

Business Scale and Resource Profile

Central Bank of India operates through 4,567 branches as of December 31, 2025, with approximately 65% located in rural and semi-urban areas. The bank's CASA deposits accounted for 47.00% of total deposits, providing a stable funding base. Gross advances grew 19% year-on-year to ₹3,23,531.00 crores, while deposits increased 13% to ₹4,50,575.00 crores as of December 31, 2025.

Outlook and Rating Sensitivity

CRISIL maintains a stable outlook, expecting Central Bank of India to continue benefiting from government support. The rating agency identified potential upward factors including sustained improvement in asset quality and profitability with return on assets exceeding 1.00% consistently. Downward factors include material changes in government shareholding or decline in capital adequacy ratios below regulatory requirements.

Central Bank of India has announced the availability of its earnings call recording held on January 16, 2026, providing stakeholders with access to detailed discussions about the bank's third quarter financial performance for FY26.

Earnings Call Details

The conference call was conducted with analysts and institutional investors to discuss the bank's unaudited financial results for the third quarter and nine months ended December 31, 2025. This earnings call represents a key communication channel between the bank's management and the investment community, offering insights into the bank's operational and financial performance during the reporting period.

Accessibility and Transparency

The bank has uploaded the complete audio recording on its official website to ensure transparency and provide easy access to all stakeholders. The recording can be accessed through two methods - either directly via the specific audio file link or through the bank's investor relations section on their website.

Regulatory Compliance

This announcement was made under Regulation 30 of the Securities and Exchange Board of India (SEBI) regulations, demonstrating the bank's commitment to regulatory compliance and transparent communication with shareholders and the broader investment community. The formal communication was addressed to both the National Stock Exchange of India Limited and BSE Limited, ensuring proper disclosure to all relevant stock exchanges.

The availability of this earnings call recording allows investors, analysts, and other stakeholders to access comprehensive information about Central Bank of India's financial performance and management commentary for the third quarter of FY26, supporting informed investment decisions and market analysis.