Central Bank of India Q3 Results: 31.6% Profit Growth Drives Share Rally
Central Bank of India delivered impressive Q3FY26 performance with net profit surging 31.6% to ₹1,262 crores, primarily driven by a 57.4% increase in other income to ₹1,935 crores, despite a 1% decline in Net Interest Income. The bank demonstrated significant asset quality improvement with Gross NPA ratio declining to 2.7% from 3.01% quarter-on-quarter and 3.86% year-on-year, while maintaining strong capital adequacy at 16.13% and declaring a third interim dividend of ₹0.20 per share.
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Central Bank of India announced its unaudited standalone and consolidated financial results for the third quarter ended December 31, 2025, demonstrating strong operational performance with shares gaining as much as 3.6% on Friday, January 16, in response to the quarterly results.
Financial Performance Highlights
The bank delivered impressive financial results for Q3FY26, with significant improvements across key performance indicators:
| Metric | Q3FY26 | Q3FY25 | YoY Change |
|---|---|---|---|
| Total Income | ₹10,968.68 cr | ₹9,738.64 cr | +12.6% |
| Net Interest Income | ₹3,503.00 cr | ₹3,540.00 cr | -1.0% |
| Other Income | ₹1,935.32 cr | ₹1,229.20 cr | +57.4% |
| Operating Profit | ₹2,292.50 cr | ₹1,963.31 cr | +16.8% |
| Net Profit | ₹1,262.60 cr | ₹958.93 cr | +31.6% |
Net profit for the quarter increased significantly, aided by higher other income which surged to ₹1,935 crores from ₹1,229 crores during the same quarter last year. However, Net Interest Income declined by 1% to ₹3,503 crores from ₹3,540 crores in the previous year.
Asset Quality Improvement
The bank showed marked improvement in asset quality parameters, reflecting effective risk management strategies:
| Asset Quality Metrics | Q3FY26 | Q2FY26 | Q3FY25 | QoQ Change | YoY Change |
|---|---|---|---|---|---|
| Gross NPA Ratio | 2.70% | 3.01% | 3.86% | -31 bps | -116 bps |
| Net NPA Ratio | 0.45% | 0.48% | 0.59% | -3 bps | -14 bps |
| Gross NPA Amount | ₹8,726.00 cr | ₹8,827.00 cr | ₹10,459.89 cr | -₹101 cr | -₹1,734 cr |
| Net NPA Amount | ₹1,413.66 cr | ₹1,366.00 cr | ₹1,554.98 cr | +₹48 cr | -₹141 cr |
| Provision Coverage Ratio | 96.69% | - | 96.54% | - | +15 bps |
Asset quality improved from the previous quarter, with Gross NPA declining to 2.7% from 3.01% in the September quarter, while Net NPAs stood at 0.45% from 0.48% in the previous quarter.
Market Performance and Dividend Declaration
Shares of Central Bank of India gained momentum following the earnings announcement, trading 1.7% higher at ₹38.94 after touching intraday highs. The Board of Directors approved the declaration of a third interim dividend for FY2025-26 at the rate of 2% (₹0.20 per equity share) having a face value of ₹10 each.
Operational Efficiency and Capital Adequacy
The bank maintained robust operational metrics:
| Efficiency Ratios | Q3FY26 | Q3FY25 |
|---|---|---|
| Return on Assets (Annualized) | 1.01% | 0.86% |
| Operating Margin | 20.90% | 20.16% |
| Net Profit Margin | 11.51% | 9.85% |
| Basic Earnings per Share | ₹1.39 | ₹1.10 |
| Capital Adequacy Ratio | 16.13% | - |
The bank maintained robust capital adequacy with a Capital Adequacy Ratio of 16.13% under Basel III norms, with Common Equity Tier 1 ratio at 13.87%. The bank is one of the few PSU lenders where government shareholding exceeds 90%.
Consolidated Results and Nine-Month Performance
On a consolidated basis, the bank reported net profit of ₹1,264.29 crores for Q3FY26 compared to ₹963.68 crores in Q3FY25. For the nine months ended December 31, 2025, the bank reported total income of ₹31,592.53 crores compared to ₹29,087.88 crores in the corresponding period of the previous year, representing a growth of 8.6%.
Historical Stock Returns for Central Bank of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.76% | +0.55% | +5.93% | +0.70% | -30.29% | +175.57% |
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