Central Bank of India reported a robust performance for the first quarter of FY26, with a strong increase in net profit and continued improvement in asset quality despite a decline in net interest income (NII).
For Q1 FY26, the bank’s standalone net profit rose 32.8% year-on-year to ₹1,168.7 crore, compared to ₹880 crore in the same quarter last year. Sequentially, profit was also higher than ₹1,033 crore in Q4 FY25.
The total income for the quarter stood at ₹10,374 crore, up from ₹9,500 crore in Q1 FY25. Operating profit before provisions and contingencies came in at ₹2,304 crore, a healthy rise from ₹1,993 crore a year earlier.
However, Net Interest Income (NII) declined 4.6% YoY to ₹3,383.2 crore, compared to ₹3,547.8 crore in the same quarter last year. Interest earned grew to ₹8,588 crore from ₹8,335 crore a year earlier, while interest expended also rose to ₹5,205 crore from ₹4,780 crore. Other income rose to ₹1,786 crore from ₹1,165 crore a year ago, aiding overall topline growth.
On the expenditure side, total expenses increased to ₹8,070 crore from ₹7,501 crore in Q1 FY25. Provisions and contingencies dropped significantly to ₹521 crore in Q1 FY26 from ₹1,191 crore a year ago, boosting net profit.
Asset quality improves
The bank’s asset quality continued to improve during the quarter. Gross Non-Performing Assets (GNPAs) fell to ₹8,638 crore as of June 30, 2025, compared to ₹11,387 crore a year earlier. The Gross NPA ratio improved to 3.13% from 4.54% YoY and 3.18% QoQ.
Net NPAs declined to ₹1,308 crore from ₹1,771 crore a year earlier, with the Net NPA ratio improving to 0.49% from 0.73% YoY and 0.55% QoQ.
Key highlights:
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Net Profit: ₹1,168.7 crore (up from ₹880 crore YoY)
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Operating Profit: ₹2,304 crore (up from ₹1,993 crore YoY)
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Total Income: ₹10,374 crore (up from ₹9,500 crore YoY)
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NII: ₹3,383.2 crore (down from ₹3,547.8 crore YoY)
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Gross NPA ratio: 3.13% (vs 4.54% YoY, 3.18% QoQ)
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Net NPA ratio: 0.49% (vs 0.73% YoY, 0.55% QoQ)
The Q1 FY26 results reflect Central Bank of India’s focus on strengthening its financials, improving profitability, and enhancing asset quality, even as it works to arrest the decline in NII.
