Central Bank of India (CENTRALBK) Earnings Call Transcript
July 17, 2026
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to the Central Bank of India Q1 FY '27 Earnings Conference Call hosted by Antique Stock Broking Limited. [Operator Instructions] Please note, this conference is being recorded. I now hand the conference over to Mr. Raju Barnawal from Antique Stockbroking Limited. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining Post Result Conference Call of Central Bank of India for Q1 FY '27. Day from the senior management side, we have with Shri Kalyan Kumar, MD and CEO, sir, Shri Murali Krishna, Executive Director; Mahendra Dohare, Executive Director; Shri E Ratan Kumar, Executive Director; and Mr. Vivek Kumar, Chief Financial Officer. Now without any further delay, I hand over the call to MD sir for their opening remarks, post which we will have a Q&A session. Thank you, and over to you, sir. .
Thank you. Good afternoon. Today, I'm very happy presenting the key facts, the performance of Central Bank of India. In Q1, that is 30 June 2026. Our total global business has grown by 18.29%, which is INR 8, 33,320 crores. And deposit increased by 11.8% to INR 4,78, 972 crores. CASA being remained our actually strong point of Central Bank of India. We maintained 46.61% of total deposits. And I would like to mention within CASA saving account year-on-year has grown by 11.66% and total CASA has grown by 11.16%. It shows our presence and trust of our customers in our brand value. Similarly, in advances side, gross global advances increased by 28.58% to INR 3,54,348 crores. And CD ratio, we have improved to 74.10 -- to our asset quality also gross NPA stood at 2.60. There is a year-on-year improvement of 53 basis points. Net NPA, we have maintained at 0.49%. PCR approximately 96%, 95.86%. Operating profit for the financial year, it is at INR 2,186 crores Net profit for the quarter increased by 13.26% to INR 1,324 crores. Net interest margin is evergreen learning with our guidance to the market, 3.06%. ROA is 1, ROE improved to 14.92% from 14.1%. Cost-to-income ratio, again, it is [indiscernible]. June 25 quarter, it was INR 55.3. Philippines stood at 0.29% for this quarter and where we can mark an improvement of 6 basis points. Capital wise also Central Bank of India is resilient, and it improved to -- CRAR improved to 18.28% of which Tire capital is 16.5%. In that way, another highlight towards profitability, which I shared with you, I am happy to share net interest income grew by 15.70% on year-on-year basis that is to INR 3,914 crores. Total income for Q1 financial '27 improved by 3.0% from INR 10,678 crores. And cost of deposit, again, moderate to -- it has improved to INR 4.60 crores, 33 basis point improvement is there -- in that way, I can tell that this cost of deposit has stabilized. Now again, in business side, if I can tell you, the REM sector -- again, RAM sector grew by 21.8%, and retail grown by 23.92%. In absolute terms, it is INR 1,05,523. And agriculture has grown by 21.4%. That is INR 64,274 crores, and MSME has grown by 18.03% at [indiscernible] crores. and REM and corporate as is 68-32. It is also aligning with our guidance, which we have given to market [ 65,35/minus5%. ] And we have maintained a credit cost also at 0.4 got as there is improvement because the previous quarter, 25%, it was 0.68%. And I'm happy to share that Central Bank of India has opened 1 branch at Gurit City. And that is our -- that platform, we are going to leverage for our overseas business for meeting our customers' requirements for our overseas business. And that is -- that already we have inaugurated on 29 June this year only '26. Today, Central Bank of India is having pan-India presence with 32,346 touch points with 4,605 branches. And with net power branches in rural 1, and one IFSC banking unit, 3,820 ATMs, 1,390 BC outlets and also -- our presence in rural semi urban, I want to highlight, it is reflected in our achievement of priority sector targets also against 40% and we have actually crossed it and it is at 58%. And small and marginal far about 10% against 10%, we have grossed more than 11%. For micro enterprises, which is actually earlier, I can tell you the growth engine for our economy, which creates employment, generates income in the lower segment of the society there, instead of 7.5%, we have crossed 15%. In that, I can tell you that Central Bank of India an ordination of 114-plus years of its existence serving nation in 2 sets in Bharat by supporting Indian economy in all the important areas. CASA, I have already told, we have maintained 46.6%. Term deposit has grown by more than 12%. In that way, CD ratio from 64% was in June 25. Now our CD ratio has improved to 74%. Liquidity coverage ratio at actually more than 210%, now it is moderated to 156%. In that way overall improvement in terms of interest income, in terms of growth, in terms of our commitment to our public we have done this. And also some structural changes I would like to highlight -- we have -- we are working on our people, process and technology. In people side, our 1,000 credit officers who were undergoing training specialized training for credit, they are going to join us in the first week of October. We are going to deploy them on our all potential credit center. We have planned to open more finance branch and mid corporate brands so that we can play meaningfully in the growth history of Indian banking. Secondly, for and not for improvement in noninterest income side, we have centralized opened centralized BG self and centralized ForEx is already operating. We have 159 NRI desk in our different branches, and we are going to market all these products with Central Bank of India is having through our -- all the strength physical presence and marketing team. We have hired 300 marketing offices. They are also being hosted now. They have been put it, and they are being posted. We have opened customer acquisition centers at 35 places and government business centers also at 9 places. So through this, we are actually really coming back into the market with all the structural changes, capability building, process simplification and technological upgradation we are actually really see good growth and good profitability in coming years. Thank you. Now I am open for questions. .
[Operator Instructions] The first question comes from the line of Ashok Ajmera at Ajcon Global. Please go ahead.
Other terms and conditions [Foreign Language].
We'll move on to the next question. It's from the line of Sushil Choksey with Indus Equity Advisors. .
So congratulations on excellent performance in the quarter. Unless I missed it. Can I get some guidance on growth for the year looking at such high advance, what is the ROE, ROE NIM guidance about the corporate and ramp book you've given a guidance. Do we see -- because of city, what kind of pipeline are we likely to generate? What is our undisbursed corporate loan and retail pipeline looking like ? So more of a flare because you are on in the high end of growth in the current quarter where PSU banks in the established we get a better flavor for the coming quarters?
Yes. Actually, I have given you guidance about composition of our advances, REM and corporate. And our guidance to market to our resources side, 11% to 12% in deposit growth and 14% to 16% in advances growth I am still confident that in the current quarter also, we are going to align with this guidance, which we have given -- already given to the market. And REM side, retail agriculture, MSME side, growth, which I have already told that REM sector grown by 21.38% retail approximately 24%, agriculture 21%, the opportunities are there. Our presence -- our network is also very supportive, conducive in that way, I am sure that this growth, which we have given guidance to the market, we are going to achieve and major areas in corporate side also, if you can see as of June 25, our corporate book was INR 76,966 crores and it has grown to INR 1,12,770 crores, and growth is 46.52%. As base was very low, that's why this growth number is visible to us. And major areas in corporate side is renewable energy, data centers and also some projects in hand side and good opportunities we are observing. We are getting good proposals, some CRE proposals also. And these are the areas in corporate side. MSME side also, we are getting good traction agriculture, gold loan and SMG are going to be the growth engine. We have brought in some structural changes also. Dedicated gold loan division and also asset division are being opened, where Head of these verticals will directly work under the guidance of Executive Director. And in Gold Loan segment, total book is INR 36,000 crores, though growth is good as compared to previous year, but there's still a lot of his scope is available in terms of our brands in South India, which had very good experience of gold loan. [indiscernible] this side also, there is growth, but still a lot of opportunities are available. We are going to harness this segment, which are going to be the growth engine for our credit growth. Deposit side, already in my earlier address also I have already conveyed that products are already several products for several customers are available. I will give you an example regarding 1 product sent Queen. Actually, very good traction, INR 1,457 crores we have mobilized under. There is 1 product that is salaries and prestige. INR 787 crores we mobilized in that segment. These things actually act and platform for cross-selling for our retail business. Vehicle loan, housing loan, car loan, -- in that way, I can tell you that these numbers are really -- we will be able to achieve very easily. Now coming to your ROA and NIM I have given guidance NIM will be 3 and above, and still we are maintaining ROA 1 and above. That also we are this time also we maintained and we have -- we are still saying that it will be even ever return on asset. And regarding other also improved from 14.17% to 14.92%. In that way, all these efficiency parameters again, business per branches. We are at INR 185 crores per branch. Employee per employee business also improved to INR 224 crores. In that way, I can assure you not only in growth number, but also in efficiency numbers also Central Bank of India is progressing to our not only growth but also resiliency.
Sir, what would we see growth advance undisbursed number today? And where do you see ending a CD ratio for the year-end and outlook on treasury and digital spend for the year? .
On dispersion is approximately INR 5,000 crores. And other NBG, we conduct every week and there are proposals which we are receiving, but undisbursed as of previous quarter is INR 5,000 crores. And regarding treasury income, this time, income is INR 276 crores. And as compared to previous year, it is less, you understand due to market conditions and all it got impacted. But this time, we -- our aim for getting more return in the investment side also, we are taking initiatives their side also expecting some moderation and the improvement we are expecting.
Sir, a view on ECL provisioning .
ECL actually already, we have made provision of Stage 1 and stage 2 INR 1,525 crores. That buffer we are having. And approximately INR 4,500 crores to INR 5,000 crores total will require. For that purpose, I understand our current profit numbers are enough. And CRAR, you have seen 18.28% is there. Even though -- there are provisions we can stagger it to 5 years. But even though we go for 1 time also, we take it, then 80 basis point only impact we are expecting and due to improvement in credit underwriting qualities and other improvement in credit monitoring mechanism. I am sure that the BD calculation for these numbers will be under control, and we'll be easily able to shift to ECL from first April '27. .
My last question and then we what is your expectation for recovery [Technical Difficulty] even of the technical result of both...
See our technical donor book, we are having 32,900 plus in the 30 and 9,200 number in our actually not books. So absolute numbers I'm talking about. So we expect -- if I can tell you -- we the last previous year number, INR 1,300 crores, INR 1,400 crores, INR 1,000 crores and INR 2,100 crores, we have recovered out of technical return of account in the last few years, a rise, I have told you. This year also affecting from INR 2,200 crores to INR 2,500 crores out of this technical edition. And approximate major accounts, we are expecting INR 235 crores through OTS or liquidation or silo property and also another INR 200 crores, we are expecting from NCLT. With INR 500 crores, we are expecting some return of account in this quarter. And apart from that, I would like to tell you regarding onetime settlement in eligible accounts we are pursuing and also option of act -- in first quarter, we have sold property and out in 121 cases out of 810 properties put on auction. In the current financial year, we are targeting to sell 600 to 700 property against 450 properties in the last year. And we are organizing property expos and utilizing services of property consultant -- so that visibility and marketability of properties get enhanced. In that way, I can assure you that from recovery side, this quarter, we are going to achieve the numbers .
Overall, we tend to centralize [indiscernible].
The next question comes from the line of Tanya Kothary, AUM Capital Markets.
[indiscernible] other quarters of the business growth and continued improvement in asset quality. I have a couple of questions -- the raising of 2,000 products equity base -- what is the expected to guideline and the 1 look for the capital raising.
And we see our already CRA 18.2% this year. And CET1 is also 16.4%. In that way, we are having enough capital and we don't need to support our growth guidance, which we have given to the market. We are having enough capital. So therefore, there is no -- any current plan for paging capital.
The liquidity coverage ratio decline [indiscernible] both the alteration requirement but performance is a -- can you elaborate on that?
Actually first, we should understand what is the optimum level for LCR and CR -- sorry, and a -- and what is the performance behind it, keeping it high quality liquid sales for this LCR. So having comparing 215% and having series 66% or 64% for any vibrant and growing or Nielsen, it is liability because those high-quality liquid assets and all things comes with a cost. Therefore, those things must be deployed optimally so that we can get a better return out of it. . So that for those were comfort the settlement of India was having. Now as our CD ratio has increased 54% as of June 25 to 74% as of -- we are utilizing all these living all the means resources available with. And that is good sign to the market that we are optimally utilizing our liquidity and still -- it is as compared to other oration new countries, those are 130 in liquidity coverage ratio you are still evolve there. So whatever is the -- as per risk management bottom print threshold level, we are still above those levels. That's why this is a good sign I would like to tell you.
Okay sir. So concern for the advanced new grow 28.6% a year and had investments...
Sorry to interrupt, could you please use your handset?
It is not very clear, actually. Yes, you can continue -- you can speak -- we are making...
[indiscernible] year-on-year and which are driving this growth? And what to import that to ensure that credit in...
Actually, if you see, as of June -- our corporate loan book was INR 76, 699 crores. And currently, as of June 26, it is INR 1,12,500 crores. So the growth is 46% and 46.2% to be precise. This is only due to lower basis effect. [ INR 776 ] from there, we have grown to INR 1,12,770 crores. So that's why -- but the rail sector, you see our growth is 21.38%. Retail has grown by 33.94%, agriculture by 21%, MSME by 18% -- we are not an outlier. And we are having very small base, that project is looking at our growth is more than 28% and as far as great underwriting concerned, I can see you, we have done 1 analysis that trade growth after faster October, INR 1,22,000 crores was disbursed out of stress was very, very less. And the slippage ratio, it is 0.29 this time. And there is consistent improvement in slippage ratio. And I can -- I will tell you -- if we reduce the agriculture, KCC numbers got lifted INR 200 crores out of total INR 986 crores which got cleared and previous June 25, it was INR 989 crores. So that agriculture side INR 200 crore. You know that ever schemic coming, and those things will be get equated. If we remove those numbers, then our the consistent improvement in underwriting quality of disbursement, trade monitoring quality India I can assure you that our -- we have very clear that control and oversight over this underwriting standards and also this lending process. to investments of our colors.
[Operator Instructions] The next question comes from Ashlesh Sonje from the line of with Kotak Securities, please go ahead.
Sir, 3 questions from my side. Firstly, on the term deposit book, is there any further repricing left of the term deposits, which can help you reduce the cost of deposits going forward?
Some deposits almost is now and 4.60 is the cost of polling. So almost -- it is over now by now, that I can tell you. But in growth side, if you want to know, term deposit has grown by 12% in our -- are below INR 5 crores in retail to 85% of our deposit are under INR 3 crore segment.
Sorry, you said 55%?
85% are below INR 3 crores.
Understood. Secondly, on the C&R deposits, how much have you mobilized thus far? And how much do you expect to mobilize in the scheme is available?
CRB till now we have mobilized USD 8.4 million, and we are expecting to mobilize by September USD 400 million.
Understood. Sir, thirdly, on ECLG scheme, how much have you sanctioned thus far? And how much have you disbursed see sanction number actually approximately INR 4,000 crores. I will just tell you.
Yes. Total applications actually sanction is INR 34.824 amount is INR 4,656 crores, and guarantee some is [ 561 ] accounts amount is INR 4,353 crores within this disbursement happened in 27,567 account and increased INR 3,693 crores. This is our PCGS.
Sir, just lastly, you now have a fairly large corporate loan book of INR 1.1 billion roughly. What's the average yield on this corporate book in this quarter, June quarter? And how much was -- what was it in the March quarter?
Yield on advances is 7.89%. It has improved from 7.78%. But for corporate, separately corporate we'll provide you. Currently, we don't have -- but overall, the comment advances have improved to 7.89%. Previous quarter, it was 7.78%.
Okay, sir. Sir, just to put the question, frankly, do you expect the overall yield to go up going forward?
Yes. Overall, we will pull forward because we are focusing on more loan assets. We are we are bringing structural then end of these 2 divisions are going to report actually to read the guidance of date will work. And our physical presence in South India and other sector -- upcoming sector opportunities for these intenses are due. So there -- it is also 8 plus, both in gold loan and SSG side. So there we expect that our yield will improve further improved from 7.89%. Anywhere between 8, we are thinking that as of March '27, we will reach up to 8%.
Understood. Sir, just 1 follow-up on the old loan piece. These are all MCLR-linked loans on golds?
Gold loan actually was upon Board loan, 8.11%. That's -- for agriculture, it is [indiscernible] and still are linked and retail, it is important external benchmarking.
The next question comes from the line of Amit Mishra from Indus Equity Advisers.
Sir, few questions. First, cost to income. You have given target of less than 56%. And we have been in the past 3 years, we are around somewhere around 58%, 57%. So what a step additional we are taking this year to get it below 56% responded that?
This is 1 of the efficiency area, which is our priority. So for at improvement in income and also cost curtailment both strategically we are working. First of all, I will talk about the improvement income. You see our interest income has increased significantly. And NI has grown by more than [ 5.7%. ] Now we are focusing upon noninterest income side, where fewest income we can maximize -- we have opened centralized force. We have opened centralized bus. And in these 2 areas, we are focusing upon our actually LCL business, where our own clients who are willing these services are outside our bank. There we are contacting them. We are bringing them. We are organizing exporter need centers we have already organized. And we are going to organize -- we have opened NRI sales, give City will also support us in actually ramping up the CVS and other income. In that way, or improve bringing improvement in income we are having generally, life insurance and nonlife insurance. In both segments, we are expecting because previous year was establishment is still now they have been stabilized. This year, we are expecting would come from those business sites. Those are our actually opportunities available to us. So there, we are doing big with. And also 1 important intervene we have fitting sales headed by General Manager and 35 customer acquisition centers we have opened and 9 government business centers we have opened. These -- through these marketing offices, we are going to play a big way for mobilizing this insurance business, this LTL business through the concept of 1000 trade once, we are using them as a relation manager also for this -- in that way, we'll be able to garner better return and improve over in overall movement in the income side. To our [indiscernible], we have identified different cost centers like from maintenance of cash retention balance to how optimized we can use our ATM, we can use our currency test also how we can actually see our proper utilization of our land bank and also asset curtailment expenditure and laxity, water, stationary, all these things fitness the format we are following up monitoring. And these things, I am sure that in the coming year, 1.5% to 1.6%. Every year, I am sure that we'll be able to reduce our cost to income this.
Okay. And sir, you mentioned in the income, but are we planning to launch any credit cards or other value-added services, seen some other banks also started the credit cards, plans for our bank?
Yes.
We have less to have a good portfolio of credit cards a year.
See, we are having 8. 33 crore customer base. So therefore, we have got Board for a establishment of wealth management vertical, credit card vertical, RI and marketing. So we are entering into credit card segment also. We have initiated the steps for servicing these segments. -- and which is very much required for sell account and our normalized other businesses, premium customers also. So this is -- you are right -- you are right in asking us that these segments also we are entering in the future.
Okay. Sir, sir, 1 last question. There is big city. I think we have bus around INR 4 crores right now. So any plan for full year, how much portfolio you want in that from at city what kind of is are we getting there, if you can mention?
See deposit of $200 million and trade book of $500 million. Over the next few years, we are planning -- and as on 29 June only, it was inaugurated, we are contacting our existing customers and also prospective customers so that we can get good business from this platform.
[Operator Instructions] We have a follow-up question from the line of Ashok Ajmera from Ajcon Global.
I'm extremely sorry sir. My name had come and if I was specialty very urgent another call had come. [indiscernible]. But I had you most of your discussion the other -- many of the questions have already been answered. I have a couple of specific observations and some questions. First of all, compliments to you for a good set of numbers, very good on profitability and many of the other parameters are also met or a little beyond in the targets we were given. Having said that, my first thing is though we -- on an annualized basis, our credit growth is 28.58%. The credit growth for the quarter, it's only 2.85%. So going forward in order to meet our performance and our kind of radar were, how do you plan to increased our loan book in the remaining 3 quarters, pipeline and the mix of corporate and an -- so what do you do in mind? And what do you have to say on this sir?
See growth actually is not a challenge for Central Bank of India, we have enough capital. We have been resource is. And in the momentum -- and also credit underwriting quality post disbursement, monitoring part, all these things we have taken care of -- so that actually gives us enough confidence to grow at a faster rate. Resources are available capital available, assumption process are in place, with the open tie mechanism are there, which is being reflected in maintaining asset quality is lifted. In that way, I am still aligning with market guidance, which I have given to the market deposit 11% to 12% and advances 14% to 16% very easy, we'll be able to maintain this growth rate. As you told that quarter-on-quarter growth looks actually approximately 3%. So that actually, I am sure that these things will be continued because we are getting good portfolios in corporate side also. And a factor also, as I have told you, retail, we have grown by approximately 23.9%. Agriculture has grown by 21%, MSME grew 15%. And now with the opening of Golden the head will directly be putting under what under the guidance of elector this segment, we are finding good traction because our presence in South India, where the products are really popped up. We are entering in those data with proper branding and prefer actually approach is steady. I am so that field will also improve, and it has already improved. You have seen from our numbers, will also improve and numbers will also improve both the rail segment and also corporate segment.
Sir, some color on this LGS, how much is sanctioned and base, how much total it will help in increasing our on book?
Our total applications reseals quarter 1 despite INR 1,800, amount was INR 5,800 crores within which we have sanctioned 34,824 eligible accounts amount was INR 4,646 crores. And sold in the account of INR 30,561 or amount is INR 4,350 crores. Within which disbursement already done 37,567 accounts have a INR 369 crores. This is actually data related to ECL.
Yes, one, there's a whole question on this recovery from that old Asian account, -- so what is happening on that, sir, it has been substantial has already taken place in the past 1.5 years or are we expecting because the property sale was also there. So give you some color on that, sir, go ahead recovery?
We have received INR 515 crores at CMC guarantee. and there is a parcel of land you told we are putting it on auction. Again, in the month of August, we are going for option of this parcel of land. But that is the recovery in this account that I want to tell you.
Okay. Sir, something on the progress on this -- our insurance acquisition, generally Central Life and generally non-life. What is the progress there, sir? And how much capital has so far additionally has been put in?
See, we have 26% stake in both entities. Life and generally Central Non-life. So we have 26% stake. And previous year, it was under establishment was getting done. Now they are back in the business. And this year, we are expecting a good amount of income from both life and non-life businesses. So -- but regarding exact amount of capital, I will provide you later. Currently, I'm not having that. You are having that number? Can you speak? INR 627 crores is the capital invested by us in both the companies. hope you have heard.
Yes. Sir, one just a small observation on the segment results. where there is a lot of variations in the quarterly numbers. Treasury income INR 621 crores as against INR 353 crores, that is okay, maybe acceptable. In case of the retail book, the profit is INR 1,377 crores against INR 633 crores. And in wholesale book, it is minus INR 139 crores against INR 284 crores. And unallocated minus INR 75 crores against the profit of INR 32 crores. So is there any change in the segment allocation of the profitability or it is because of the provisioning -- imbalance of the provisioning in the various segments?
Provisioning has actually come down. That is not the case. That is not the case. And what you are saying, it depends upon the numbers or which undergone changes.
As there are no further questions at this time, I would like to hand the conference over to the management for closing comments.
Yes. Thank you. And again, I have actually already conveyed our strategy and also conveyed about the numbers. I can assure all the stakeholders that Central Bank of India is strong fitting in terms of growth. And we have a well-led plan not only for this year but next year also. And we are -- our team is working on those directions. The steps towards capability building to our structural changes and also the strength which Central Bank of India is having in terms of physical presence, in terms of network, in terms of its strength of CASA and also other interventions which have been taken, I can assure the guidance which we have given to the market, we are not only going to achieve but also exceed those numbers. With this, thank you and all the best.
hank you, sir. On behalf of Antique Stockbroking Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.
Read the full transcript via the API
You're viewing the first half of this call. Get the complete Central Bank of India transcript - plus 252,000+ transcripts from 12,000+ companies, speaker segments and full-text search - through the EarningsAPI REST API or hosted MCP server.
Get an API key View API docs →For developers and AI pipelines
Programmatic access to Central Bank of India earnings transcripts and 252,000+ others is available through the
EarningsAPI REST API and the hosted MCP server.
Quarterly plans from $105 - full transcripts, speaker segments, full-text search,
and the /api/v1/transcripts/recent polling endpoint for ETL pipelines.