Central Bank of India , one of India's leading public sector banks, has reported robust financial results for the second quarter of fiscal year 2026, alongside announcing a strategic co-lending partnership for housing loans.

Q2 FY2026 Financial Highlights

The bank's Board of Directors approved the unaudited standalone and consolidated financial results for Q2 and H1 FY2026 on October 17, 2025. Here are the key highlights:

The bank has shown significant improvement in asset quality, with the Gross NPA ratio decreasing from 4.59% to 3.01% year-over-year. The Net NPA ratio also improved, dropping from 0.69% to 0.48%.

Central Bank of India's capital position remains strong, with the Capital Adequacy Ratio standing at 17.34%, well above regulatory requirements.

Interim Dividend Declaration

The bank has declared a 2% interim dividend, amounting to ₹0.20 per equity share with a face value of ₹10 each for FY2026.

Change in Depreciation Method

Effective April 1, 2025, the bank has changed its depreciation method from Written Down Value to Straight Line Method. This change resulted in an increase in depreciation and a decrease in net profit by ₹2,637 lakh for the half year ended September 30, 2025.

Strategic Co-Lending Partnership

In a separate announcement, Central Bank of India revealed a strategic partnership with Godrej Housing Finance Ltd. for co-lending in housing loans. Key points of this partnership include:

• Godrej Housing Finance will originate and process housing loan proposals based on jointly formulated credit parameters.
• Central Bank of India will take up to 80% of the home loans on its books under mutually agreed terms.
• Godrej Housing Finance will service the loan accounts throughout their lifecycle.
• The partnership aims to offer competitive rates and expand the reach of both entities across India.

This co-lending arrangement is expected to benefit customers by providing a convenient experience while helping both institutions expand their housing loan portfolios.

The strategic move aligns with the bank's focus on growing its retail loan book and leveraging partnerships to enhance its market presence in the housing finance sector.

As Central Bank of India continues to strengthen its financial position and explore innovative partnerships, it remains committed to serving its customers and contributing to India's economic growth.

Central Bank of India has announced a strategic co-lending partnership with Godrej Housing Finance Ltd. to offer housing loans, marking a significant move in the banking and housing finance sector. This collaboration aims to expand the bank's housing loan portfolio while providing customers with competitive interest rates.

Key Details of the Partnership

Implications and Benefits

The co-lending arrangement is expected to yield several advantages:

1. Portfolio Expansion: Both entities anticipate greater expansion of their loan portfolios.
2. Competitive Rates: Customers may benefit from more competitive interest rates on housing loans.
3. Wider Reach: The partnership aims to expand the reach of both institutions across India.
4. Improved Customer Experience: The collaboration is expected to offer a more convenient experience for customers.

About Godrej Housing Finance

Godrej Housing Finance, a part of the Godrej Industries Group, is a housing finance company registered with the National Housing Bank (NHB). It operates across multiple states and has a presence in various segments of housing finance, including prime, mass-market, and affordable housing.

Regulatory Compliance

The partnership will operate subject to compliance with applicable laws, including guidelines issued by the Reserve Bank of India (RBI).

This strategic move by Central Bank of India aligns with the growing trend of partnerships between traditional banks and specialized finance companies, potentially leading to more efficient lending processes and expanded access to housing finance for consumers across India.