Note: The provided documents are an investor presentation and concall transcript. They do not provide a revenue split by product/segment. The write-up below focuses on the disclosed banking metrics (income, profits, asset quality, capital, and operating initiatives).

Central Bank of India FY26 results: growth-led year, Q4 hit by one-offs

Central Bank of India closed FY26 with a clear theme: business acceleration with improving asset quality, even as headline profitability saw quarter-end noise from one-time items and treasury volatility.

For the full year ended March 2026, the bank reported net profit of INR 4,369 crore, up 15.43% year on year. Total business grew 15.60% to INR 812,439 crore, driven by 13.38% growth in deposits to INR 467,923 crore and 18.76% growth in gross advances to INR 344,516 crore. Retail, agriculture and MSME (RAM) continued to be the primary growth engine, rising 20.86% to INR 234,571 crore.

The March quarter was weaker on the surface. Q4 FY26 net profit declined to INR 724 crore versus INR 1,034 crore in Q4 FY25, largely because of a one-time impact of INR 632 crore related to deferred tax asset recognition at a lower tax rate. In addition, treasury income fell sharply in the quarter, affecting non-interest income.

The operating picture: steady core income, volatile non-core lines

The bank’s FY26 income profile highlights why Q4 looked uneven. On a full-year basis, total income rose to INR 42,342 crore (up 7.72%). Interest income increased to INR 36,026 crore (up 7.01%), while total non-interest income increased to INR 6,316 crore (up 11.95%).

But within non-interest income, the components moved in different directions. FY26 treasury income declined to INR 1,162 crore from INR 1,427 crore in FY25. Q4 FY26 was particularly weak, with treasury income of INR 9 crore versus INR 302 crore in Q3 FY26 and INR 409 crore in Q4 FY25.

Management linked the quarter-on-quarter drop in operating profit to two factors: AFS mark-to-market effects that hurt treasury income and a lower recovery from written-off accounts in the quarter. The bank reported recovery in written-off accounts of INR 352 crore in Q4 FY26 versus INR 1,026 crore in Q3 FY26. For the full year, recovery in written-off accounts was INR 2,271 crore, continuing an improving multi-year trend.

Financial summary (Standalone)

Note: FY26 and Q4 FY26 profitability metrics were stated as impacted by a one-time deferred tax asset recognition impact of INR 632 crore.

Balance sheet growth: RAM-led advances and deposit expansion

The bank’s FY26 growth was broad-based. Deposits grew 13.38% to INR 467,923 crore. CASA deposits increased 9.75% to INR 220,781 crore, though the CASA ratio moderated to 47.30% from 48.91% a year earlier.

On the assets side, gross advances rose 18.76% to INR 344,516 crore, with RAM at 68.09% of the loan book. Retail advances grew 25.67% to INR 103,533 crore, crossing the INR 1 lakh crore milestone highlighted in the presentation. Agriculture advances grew 17.60% to INR 61,687 crore and MSME advances grew 17.06% to INR 69,351 crore. Corporate advances grew 14.50% to INR 109,945 crore.

The bank also reported a higher credit-deposit ratio (excluding interbank deposits) at 73.80% versus 70.53% in FY25.

Asset quality: improving ratios, but agriculture and MSME remain higher-risk pockets

Asset quality improved year on year. Gross NPA ratio declined to 2.67% from 3.18% and net NPA ratio stood at 0.49% versus 0.55% in FY25. The bank reported gross NPAs of INR 9,185 crore and net NPAs of INR 1,666 crore as of March 2026.

Sector-wise, the stress was more visible in agriculture and MSME. As of March 2026, agriculture GNPA was INR 3,645 crore on advances of INR 61,687 crore, translating to 5.91%. MSME GNPA was INR 3,713 crore on advances of INR 69,351 crore, translating to 5.35%. Retail and corporate asset quality was materially better, with retail GNPA ratio at 0.95% and corporate at 0.76%.

Provision buffers remained high. Provision coverage ratio including technical write-offs was reported at 95.97% as of March 2026 (81.86% excluding technical write-offs).

Management acknowledged that Q4 slippages were higher at INR 1,301 crore compared with earlier quarters and noted that audits in the quarter can drive stricter classification, especially in MSME, and that some agriculture-linked accounts were identified.

Capital and ECL preparedness: high buffers and built provisions

Capital adequacy strengthened in March 2026. CRAR was 17.91% with CET1 at 15.61%.

A key discussion point on the call was the RBI’s expected credit loss (ECL) framework. Management said the bank has been working for 1 to 2 years on models and data readiness and disclosed that it had built INR 1,525 crore of additional provisions toward ECL preparedness. They also stated a conservative internal estimate for ECL transition impact of around INR 4,000 crore and noted that RBI permits taking the transition impact through reserves, which the bank felt comfortable doing given its capital position.

On the recurring impact post-transition, management indicated an estimate of around INR 600 crore to INR 650 crore of additional provisions on an ongoing basis, while also discussing a potential benefit from shifting to the new 25% tax regime.

Digital execution and operating initiatives: pushing adoption and throughput

FY26 was also positioned as a year of execution on digital and process initiatives.

Digital transactions through alternate digital channels increased to 90.54% in Apr 2025 to Mar 2026, up from 86.15% a year earlier. UPI share rose to 88.35% of the digital transaction mix.

The bank described several technology and customer initiatives:

• Digital Lending Platform journeys for education loans, solar vendor scheme, Mudra renewals and CKCC allied activities, featuring GST-based assessments, real-time bureau checks, geo-tagged inspections, and e-sign/e-stamp.
• Digital account opening (DKYC tab-based) live since May 2025 across multiple savings products. The presentation reported digital adoption share increasing to 67.32% as of March 2026 from 0.01% in April 2025.
• Corporate net banking platform Cent eeZ Vyapaar Saathi for SMEs and corporates, with maker-checker workflows and bulk payment features.
• ATM switch monitoring solution and debit card management system upgrades to improve uptime and reduce transaction failures.

In parallel, the bank outlined capacity building and governance actions, including training programmes for 1,000 credit officers, weekly credit committee meetings, a compliance automation portal, and intensified recovery campaigns.

What management guided for FY27

The investor presentation provided explicit guidance ranges for FY27:

• Business growth: 14 to 15%
• Deposit growth: 10 to 12%
• Advances growth: 14 to 16%
• CASA: 48% plus or minus 1%
• NIM: above 3%
• Gross NPA: below 2.50%
• Net NPA: below 0.50%
• PCR: 96 to 98%
• Credit cost (annualized): up to 0.75%
• Cost to income ratio: below 56%

The call also included commentary that the bank’s capital position is not a constraint for its growth aspiration and that the RAM to corporate mix guidance remains 65:35 plus or minus 5%.

Takeaways

Central Bank of India’s FY26 performance reflects a bank in expansion mode with visible progress on asset quality and capital buffers. Growth was led by RAM, especially retail, and the bank maintained a high provision coverage ratio and improved GNPA and NNPA ratios.

The near-term swing factor is the stability of core earnings versus non-core volatility. Q4 FY26 was impacted by a one-time deferred tax item and a sharp drop in treasury income, underscoring why investors may focus on recurring operating profit, the trajectory of NIM around the 3% threshold, and cost-to-income improvements toward the below-56% guidance.

With explicit FY27 targets, higher digital adoption indicators, and stated ECL preparedness provisions, the next year’s narrative will likely hinge on execution: sustaining growth while improving margins, containing slippages in agriculture and MSME, and delivering on operating efficiency goals.