Central Bank of India Reports 32.86% Surge in Q2 Net Profit, Asset Quality Improves

Central Bank of India , a public sector bank with a 113-year legacy, has reported a significant 32.86% year-on-year increase in net profit for the second quarter, reaching Rs. 1,213.00 crores. The bank's financial results demonstrate improvements in various key metrics, although some challenges remain.

Business Growth and Deposit Base

The bank's total business grew by 14.43% year-on-year to Rs. 7,37,938.00 crores. Deposits saw a healthy increase of 13.40%, reaching Rs. 4,44,450.00 crores. Notably, the bank maintained its strong CASA (Current Account Savings Account) ratio at 46.83%, with CASA deposits growing by 8.55% to Rs. 2,07,616.00 crores.

Advances and Sector-wise Performance

Gross advances showed robust growth of 16%, amounting to Rs. 2,93,488.00 crores. The RAM (Retail, Agriculture, and MSME) sector, a key focus area for the bank, grew by 15.23% to Rs. 2,09,948.00 crores.

Asset Quality Improvement

The bank reported significant improvements in asset quality:

Metric	Q2	YoY Change
Gross NPA	3.01%	-158 bps
Net NPA	0.48%	-21 bps

Profitability and Efficiency Metrics

Metric	Q2	YoY Change
Return on Assets	1.01%	+17 bps
Return on Equity	14.22%	+155 bps
Cost-to-Income Ratio	62.72%	+553 bps

While ROA and ROE showed improvement, the increase in the cost-to-income ratio remains a concern for the bank.

Income and Margin Pressure

The bank's total income grew by 4.07% year-on-year to Rs. 10,250.00 crores, with interest income increasing by 6.61% to Rs. 8,744.00 crores. However, non-interest income decreased by Rs. 280.00 crores compared to the previous quarter.

Net Interest Margin (NIM) compressed by 52 basis points to 2.89%, reflecting the challenging interest rate environment. The yield on advances decreased to 8.36% from 8.77% a year ago, while the cost of deposits increased to 4.88%.

Operational Performance

Operating profit decreased to Rs. 1,786.00 crores, down 22% quarter-on-quarter and 17.51% year-on-year, primarily due to lower treasury income. However, the bank managed to reduce provisions by 54% year-on-year to Rs. 573.00 crores, reflecting improved asset quality and effective containment of slippages.

Management Commentary and Future Outlook

Shri Kalyan Kumar, MD and CEO of Central Bank of India, emphasized the bank's vision to become a digitally enabled, customer-centric institution. He outlined plans to:

Maintain a 65:35 ratio between RAM and corporate lending
Focus on digital initiatives and superior customer experience
Target recovery of over Rs. 2,000.00 crores from written-off accounts during the financial year
Improve the cost-to-income ratio to 54-55% range by March

The bank aims to leverage its strong rural and semi-urban presence, with 65% of its branches in these areas, to drive growth in the RAM sector while also expanding its corporate lending portfolio.

Central Bank of India's Q2 results showcase a mix of strong growth in key areas and challenges in others. While the bank has made significant strides in improving asset quality and profitability, it faces headwinds in terms of margin pressure and operational efficiency. The management's focus on digital transformation and balanced growth across sectors could be crucial in navigating the evolving banking landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.05%	+2.89%	+9.05%	+6.60%	-23.68%	+259.19%

Central Bank of India has announced the record date for its second interim dividend payment for the financial year 2025-26, along with important tax deduction at source (TDS) information for shareholders.

Key Details

Record Date: Monday, October 28, 2025
Dividend Amount: ₹0.20 per equity share of ₹10 each
Financial Year: 2025-26

Announcement and Communication

The bank made this announcement through a regulatory filing dated October 20, 2025, signed by Company Secretary & Compliance Officer Chandrakant Bhagwat. To ensure wide dissemination of this information, Central Bank of India published advertisements in the following newspapers on October 19, 2025:

Language	Newspaper
English	Financial Express
Hindi	Jansatta
Marathi	Loksatta

Shareholder Information

Shareholders are advised to take note of the following:

Eligibility: Shareholders on the record as of October 28, 2025, will be eligible to receive the second interim dividend.
TDS Implications: As per the Income Tax Act, 1961, as amended by the Finance Act, 2020, dividends paid or distributed by the bank on or after April 1, 2020, are taxable in the hands of shareholders.
TDS Rates: The bank will deduct tax at source at the rates applicable to each category of shareholders.
TDS Exemption: Shareholders seeking exemption from TDS are requested to submit duly filled and signed forms through the RTA web portal link: https://web.in.mpms.mufg.com/formsreg/submission-of-form-15g-15h.html by October 31, 2025.
KYC Update: Shareholders holding shares in demat form are urged to update their KYC details, including PAN, postal address, email ID, bank account details, and nomination details, through their Depository Participants.
Physical Shareholders: Those holding shares in physical form should update their KYC details by submitting the duly filled ISR-1 form along with necessary documents to the bank's RTA, MUFG Intime India Pvt. Ltd.

Investor Relations

For any queries or additional information, shareholders can refer to the bank's website: https://www.centralbank.in/en/investor-relations

This announcement demonstrates Central Bank of India's commitment to keeping its shareholders informed and ensuring smooth dividend distribution processes. Investors are advised to take necessary actions regarding their KYC details and tax exemption forms to facilitate efficient dividend processing.