This article first appeared on GuruFocus .
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Total Global Business Growth:18.29% to INR 8,33,320 crore.
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Deposit Increase:11.68% to INR 4,78,972 crore.
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CASA Ratio:46.61% of total deposits.
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Gross Global Advances Growth:28.58% to INR 3,54,348 crore.
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CD Ratio:Improved to 74.10%.
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Gross NPA:Reduced to 2.60%, a year-on-year improvement of 533 basis points.
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Net NPA:Maintained at 0.49%.
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Provision Coverage Ratio (PCR):Approximately 95.86%.
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Operating Profit:INR 2,186 crore.
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Net Profit:Increased by 13.26% to INR 1,324 crore.
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Net Interest Margin (NIM):3.06%.
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Return on Assets (ROA):1%.
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Return on Equity (ROE):Improved to 14.92% from 14.17%.
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Cost-to-Income Ratio:55.40%.
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Slippage Ratio:0.29%, an improvement of 6 basis points.
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CRAR:Improved to 18.28%, with Tier 1 capital at 16.54%.
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Net Interest Income Growth:15.70% year-on-year to INR 3,914 crore.
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Total Income for Q1 FY27:Improved by 3.08% to INR 10,678 crore.
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Cost of Deposit:Improved to INR 4.60 crore, a 33 basis point improvement.
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RAM Sector Growth:21.38%.
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Retail Growth:23.92% to INR 1,05,523 crore.
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Agriculture Growth:21.14% to INR 64,274 crore.
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MSME Growth:18.03% to INR 71,308 crore.
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Credit Cost:Improved to 0.40% from 0.68% in the previous quarter.
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Branch Network:4,605 branches, including a new branch at GIFT City.
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Touch Points:22,346, with 3,820 ATMs and 13,890 BC outlets.
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Liquidity Coverage Ratio:Moderated to 156% from over 210%.
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Release Date: July 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Central Bank of India ( BOM:532885 ) reported a significant growth in total global business by 18.29%, reaching INR8,33,320 crore.
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The bank's CASA ratio remains strong at 46.61%, with savings accounts growing by 11.66% year-on-year.
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Gross global advances increased by 28.58% to INR3,54,348 crore, with an improved CD ratio of 74.10%.
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Net profit for the quarter rose by 13.26% to INR1,324 crore, with a net interest margin above 3%.
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The bank's capital adequacy ratio (CRAR) improved to 18.28%, indicating strong capital resilience.
Negative Points
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The cost-to-income ratio remains high at 55.40%, showing minimal improvement from the previous year.
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Treasury income decreased to INR276 crore, impacted by market conditions.
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The liquidity coverage ratio declined from over 210% to 156%, although still above regulatory requirements.
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The bank's recovery from technical write-offs remains a challenge, with INR32,900 crore in technical write-off accounts.
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There is a significant undisbursed corporate loan amount of approximately INR5,000 crore, indicating potential delays in loan disbursement.
Q & A Highlights
Q: Can you provide guidance on growth for the year, particularly in terms of advances, ROA, ROE, and the impact of GIFT City on the pipeline? A: Kalyan Kumar, MD and CEO, stated that the bank expects deposit growth of 11% to 12% and advances growth of 14% to 16%. The RAM sector has shown significant growth, with retail at 24%, agriculture at 21%, and MSME at 18%. The corporate book has grown by 46.52%, driven by sectors like renewable energy and data centers. The bank is confident in achieving its growth targets, with a focus on improving ROA and NIM, maintaining them above 1 and 3, respectively.
Q: What is the current status of undisbursed corporate loans and the outlook on treasury and digital spend? A: Kalyan Kumar mentioned that the undisbursed amount is approximately INR5,000 crore. Treasury income was INR276 crore, impacted by market conditions. The bank is taking initiatives to improve returns on investments and expects moderation and improvement in this area.
Q: Can you elaborate on the decline in the liquidity coverage ratio (LCR) and net stable funding ratio (NSFR)? A: Kalyan Kumar explained that the decline in LCR from 215% to 156% is a strategic move to optimize the use of high-quality liquid assets, which come with a cost. The bank is leveraging its resources more effectively, and the current LCR is still above the regulatory threshold, indicating optimal liquidity utilization.
Q: What are the plans for cost-to-income ratio improvement, and are there any new credit card or value-added services planned? A: Kalyan Kumar highlighted that the bank is focusing on both income improvement and cost curtailment. Initiatives include enhancing non-interest income through centralized ForEx and BC cells, and opening marketing cells. The bank plans to enter the credit card segment and has received board approval for establishing wealth management and credit card verticals.
Q: What is the status of the ECLGS scheme and its impact on the loan book? A: Kalyan Kumar reported that the bank has sanctioned INR4,646 crore under the ECLGS scheme, with disbursements of INR3,693 crore. This contributes to the bank's loan book growth, and the bank continues to receive applications under this scheme.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
