Central Bank of India Net Profit Rises to ₹1,323 Crore in Q1 FY27, Asset Quality Remains Stable

Public sector lender Central Bank of India (BSE: 532885; NSE: CENTRALBK) has announced its unaudited consolidated financial results for the first quarter of fiscal year 2026-27 (Q1 FY27). The bank registered a steady growth performance, backed by a rise in core interest income and controlled asset quality indicators.

The bank's consolidated net profit for the quarter ended June 30, 2026, increased to ₹1,323.13 crore, up from ₹1,281.96 crore recorded in the corresponding quarter of the previous fiscal year (Q1 FY25). On a sequential basis, the net profit saw a substantial jump from the ₹745.72 crore reported in the preceding quarter ended March 31, 2026.

Core Income Gains Offset Muted Non-Interest Revenue

A closer look at the bank's top-line performance shows that operational growth was primarily led by its core lending books:

Total Income: Consolidated total income for Q1 FY27 stood at ₹10,714.39 crore, up from ₹10,395.52 crore in Q1 FY25.

Interest Earned: Core interest earned grew to ₹9,725.90 crore during the quarter under review, compared to ₹8,623.38 crore in the year-ago period. This expansion was driven by interest/discount on advances, which climbed to ₹6,788.13 crore, and income on investments, which rose to ₹2,646.31 crore.

Other Income: Non-interest income witnessed a compression, dropping to ₹988.49 crore in Q1 FY27 from ₹1,772.14 crore in the matching quarter last fiscal year.

On the expenditure front, total interest expended by the bank rose to ₹5,793.95 crore from ₹5,221.75 crore in Q1 FY25. Total operating expenses were lower at ₹2,724.19 crore, down from ₹2,858.36 crore in the year-ago period, driven by a reduction in employee costs to ₹1,763.64 crore. Operating profit before provisions and contingencies stood at ₹2,196.25 crore against ₹2,315.41 crore in Q1 FY25.

Lower Provisions Boost Bottom Line

The bank's profitability was supported by lower provisioning requirements during the quarter. Total provisions and contingencies (excluding tax) fell to ₹40,503 lakh (₹405.03 crore) in Q1 FY27, down from ₹52,247 lakh (₹522.47 crore) in Q1 FY25. Out of this, the provisions specific to non-performing assets (NPAs) dropped to ₹35,011 lakh (₹350.11 crore) compared to ₹46,918 lakh (₹469.18 crore) in the year-ago quarter.

Key Asset Quality and Analytical Ratios

The lender's asset quality metrics remained stable, hovering close to the target operational baselines:

Gross NPA Ratio: The percentage of Gross NPAs stood at 2.61% as of June 30, 2026. This reflects an improvement from the 3.14% reported in June 30, 2025, and a marginal reduction from the 2.67% logged as of March 31, 2026. In absolute terms, Gross NPAs stood at ₹9,312.11 crore.

Net NPA Ratio: The Net NPA ratio came in at 0.51%, matching the general range of 0.50% reported both at the end of the previous quarter and the year-ago period. The absolute Net NPA value stood at ₹1,766.71 crore.

Return on Assets (RoA): The annualized Return on Assets was recorded at 0.99% for Q1 FY27, compared to 1.12% in Q1 FY25 and 0.57% in Q4 FY26.

Earning Per Share (EPS): Basic and diluted EPS (not annualized) improved to ₹1.46 for the quarter, up from ₹1.42 in Q1 FY25 and ₹0.82 in Q4 FY26.

Profit Margins: The bank's net profit margin for the quarter stood at 12.35%, while its operating margin was recorded at 20.50%.

The Government of India's equity stake in the central banking institution remained constant at 81.19% as of June 30, 2026. The bank's net worth (excluding revaluation reserves and goodwill) expanded to ₹37,025.88 crore at the end of the quarter.

Shares of Central Bank of India was last trading in BSE at Rs. 31.68 as compared to the previous close of Rs. 32.59. The total number of shares traded during the day was 1140049 in over 2589 trades.

The stock hit an intraday high of Rs. 33.26 and intraday low of 31.60. The net turnover during the day was Rs. 36752145.00.

Source : Equity Bulls

Keywords

CentralBankofIndia INE483A01010 Q1FY27 Q1FY2027 ResultUpdate