Mumbai: Public sector lender Central Bank of India on Friday reported a robust 31.6% year-on-year rise in standalone net profit for the third quarter ended December 31, 2025 (Q3 FY26), reflecting strong operational performance and improved asset quality. The bank’s Board of Directors approved a 2% interim dividend (₹0.20 per share) on equity shares of ₹10 each.
Strong Financial Performance
The bank’s net profit increased to ₹1,262.60 crore in Q3 FY26, up from ₹958.93 crore in the corresponding quarter last year. Operating profit rose 16.8% to ₹2,292.50 crore, while net interest income (NII) remained stable at ₹3,502.41 crore. Provisions and contingencies stood at ₹704.29 crore, up 26.7% from the previous year, reflecting prudent risk management.
The retail banking segment emerged as the largest profit contributor at ₹873.82 crore, followed by treasury (₹433.74 crore) and wholesale banking (₹377.20 crore). Consolidated net profit, including subsidiaries like Cent Bank Home Finance and associates such as Generali Insurance ventures, reached ₹1,264.29 crore.
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Asset Quality Strengthens
Central Bank of India’s balance sheet showed marked improvement, with Gross Non-Performing Assets (NPAs) declining to 2.70% from 3.86% a year ago. Net NPAs fell to 0.45% from 0.59%, and the Provision Coverage Ratio (PCR) remained strong at 96.69%. The bank stated that accounts under the Insolvency and Bankruptcy Code (IBC) have been fully provided for, demonstrating cautious asset management.
Capital Position and Compliance
The bank maintained a comfortable capital position, with a Basel III Capital Adequacy Ratio of 16.13% and a Common Equity Tier-1 (CET-1) ratio of 13.87%. Regulatory compliance remained robust, with the bank submitting required security cover certificates for ₹1,500 crore of listed unsecured debt securities and reporting 12 fraud cases totaling ₹23.10 crore, fully provided for.
Notably, the bank switched its depreciation method from Written Down Value (WDV) to Straight Line Method (SLM) from April 1, 2025, increasing net profit by ₹0.94 crore for the nine-month period. Additionally, it recognized a net Deferred Tax Asset of ₹2,155.62 crore as of December 31, 2025.
Dividend and Shareholder Benefit
In recognition of the improved profitability and stronger balance sheet, the Central Bank Board approved a 2% interim dividend, allowing shareholders to benefit from sustained financial growth. The Board meeting was held on January 16, 2026.
About Central Bank of India
Central Bank of India, established in 1911, is a leading public sector bank and a Navratna PSU under the Ministry of Finance. Known for its wide-reaching network and robust operations, the bank offers retail, wholesale, and treasury services across India. It has consistently focused on strengthening its balance sheet, enhancing customer services, and maintaining regulatory compliance while delivering sustainable growth for shareholders.
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