Central Bank of India Posts Robust Profit Surge Amidst Declining Bad Loans

The Central Bank of India reported a 28% rise in net profit for the March quarter of FY25, largely due to a reduction in bad loans. The bank's total income grew significantly, but Net Interest Income saw a decline. Improved asset quality and a strong capital adequacy ratio were notable highlights.

The Central Bank of India, a key player in India's financial sector, announced a 28% increase in net profit for the March quarter of FY25, reaching Rs 1,034 crore, aided by a reduction in bad loans.

With total income rising to Rs 10,433 crore, the lender showed significant growth compared to the year-ago period when it reported a profit of Rs 807 crore. However, a decline in Net Interest Income to Rs 3,399 crore was noted.

The bank's asset quality improved, with gross Non-Performing Assets moderating to 3.18%, and capital adequacy ratio increased to 17.02%. Plans include raising Rs 5,000 crore for FY26. The board recommended a dividend of 18 paise per equity share for FY25.

(With inputs from agencies.)