Central Bank of India Q2 profit jumps 21% to Rs 1,469 crore

Central Bank of India on Saturday reported a 21 per cent rise in net profit to Rs 1,469 crore for the second quarter ended September 30, 2026, helped by improved core income and a reduction in bad assets. The public sector bank had posted a net profit of Rs 1,324 crore in the same period of the previous fiscal, according to its regulatory filing. The results were announced on Saturday evening in Mumbai.

The Central Bank of India Q2 results continue a run of improving profitability for the state-owned lender. The latest Q2 results show the bank gaining operating leverage as income growth outpaces cost growth — a trend the latest numbers confirm is intact.

Total income increased to Rs 11,737 crore in the second quarter from Rs 10,212 crore a year ago. Interest income rose to Rs 10,357 crore in the September quarter from Rs 8,743 crore in the year-ago period, while other income including fees and treasury declined 6 per cent to Rs 1,380 crore.

Central Bank of India Q2: net interest income and margins

Net interest income — the difference between interest earned on loans and interest paid on deposits — rose 26 per cent to Rs 4,146 crore from Rs 3,283 crore in the second quarter of last financial year. Interest expenses rose 13.7 per cent to Rs 6,211 crore, but a 28-basis-point decline in the cost of deposits to 4.60 per cent helped offset a 49-basis-point fall in the yield on advances to 7.87 per cent.

Central Bank of India's net interest margin improved to 3.01 per cent from 2.89 per cent a year ago, and the cost-to-income ratio reduced to 58.95 per cent from 62.42 per cent in the year-ago period. Operating profit increased to Rs 2,268 crore from Rs 2,186 crore a year ago, as stronger net interest income offset the decline in non-interest income.

Central Bank of India Q2 asset quality improves

Gross non-performing assets moderated to 2.39 per cent of gross advances at the end of September 2026 from 3.01 per cent a year ago, while net NPAs came down to 0.31 per cent from 0.48 per cent. The provision coverage ratio stood at 97.16 per cent as on September 30, 2026, and the capital to risk-weighted assets ratio improved to 17.68 per cent from 17.48 per cent. Provisioning during the quarter increased to Rs 490 crore from Rs 144 crore a year ago, reflecting the public sector bank's cautious approach even as asset quality improved. The improvement underscores the sustained clean-up of the bank's loan book over recent quarters.

Loan growth powers Central Bank of India Q2

Total advances increased 30 per cent to Rs 3.81 lakh crore, led by 21 per cent growth in the retail, agriculture and MSME segment. Retail loans grew 24.49 per cent to Rs 1.12 lakh crore, underlining Central Bank of India's push into higher-yielding segments even as asset quality held steady. Management's focus on the RAM segment — retail, agriculture and MSME — has driven the expansion, with the bank targeting granular, higher-yielding loans over large corporate exposures. For the first half of FY27, the bank reported a 17.25 per cent increase in net profit to Rs 2,793 crore from Rs 2,382 crore a year ago, rounding off a Q2 results season in which stronger core income has done the heavy lifting.