Central Bank of India532885Earnings call transcript
Q2 FY2027 earnings call: profit up 21% to Rs.1469 Crores, NPA ratios within guidance
Transcript of Q2 FY2027 earnings call held on 19th October, 2026.
By ScoutQuest · · 3 min read
44.65%CASA share of total deposits
- Total business
- up 20.54% to Rs.8,89,541 Crores
- Q2 net profit
- Rs.1469 Crores, up 21% from Rs.1213 Crores
- Gross NPA / Net NPA / PCR
- 2.39% / 0.31% / 97.16%
Q2 FY2027 scorecard
This is the transcript of the earnings call held on 19th October, 2026, where the Managing Director & Chief Executive Officer opened with the results for the second quarter and half year ended 30th September, 2026, followed by questions from analysts.
Business growth
- Total business grew 20.54% year-on-year to Rs.8,89,541 Crores, against guidance of 14% to 15%.
- Total domestic deposits rose 14.41% to Rs.5,08,509 Crores, against guidance of 10% to 12%.
- Global advances rose 29.83% to Rs.3,81,032 Crores; domestic advances stood at Rs.3,72,939 Crores, a growth of 27% year-on-year, against guidance of 14% to 16%.
- The GIFT City branch, opened on 29th June, 2026, contributed Rs.8093 Crores to overseas advances.
- CASA deposits were 44.65% of total deposits, against guidance of 48% plus or minus 1%. Management linked the shortfall to FCNR(B) mobilisation and other factors.
- The RAM (retail, agriculture, MSME) book grew 21.11% to Rs.2,54,273 Crores, with retail at Rs.1,12,299 Crores (+24.49%), agriculture at Rs.67,778 Crores (+19.92%) and MSME at Rs.74,196 Crores (+17.36%).
- RAM to corporate credit mix closed at 68:32, within the guided range of 65:35 plus or minus 5%.
Profitability
- Net profit for the quarter rose 21% to Rs.1469 Crores from Rs.1213 Crores a year earlier. Quarter-on-quarter it rose 11%, or Rs.145 Crores in absolute terms.
- Operating profit was Rs.2268 Crores, up 27% from Rs.1786 Crores; quarter-on-quarter it rose 3.75%, or Rs.82 Crores.
- Net interest income grew 26.28% to Rs.4146 Crores from Rs.3283 Crores; quarter-on-quarter it rose about 6%, or Rs.232 Crores.
- Total income for the quarter reached Rs.11,737 Crores, up about 15%. Interest income rose about 7%, or Rs.666 Crores, to Rs.10,357 Crores on a quarter-on-quarter basis.
- Net interest margin was 3.01%, against guidance of above 3%.
- Return on assets improved 3 basis points to 1.03%.
Costs and efficiency
- Cost-to-income ratio improved to 58.95% from 62.42%, but was above the guidance of less than 56%.
- Apart from staff cost at 37.65%, other operating expenses improved 113 basis points year-on-year.
- Business per employee improved to Rs.25.26 Crores from Rs.21.48 Crores for the quarter ended September 2025.
- Liquidity coverage ratio improved to 156%.
Asset quality
- Gross NPA stood at 2.39%, within the guidance of below 2.50%.
- Net NPA was 0.31%, an improvement of 17 basis points.
- Provision coverage ratio was 97.16%.
- Slippage ratio for the quarter was 0.24%, within the guidance of less than 0.25%. Management separately referred to a quarter-on-quarter slippage ratio of 1.24% against a 1.25% guidance.
Focus areas management flagged
- A mid-term strategy meet with general managers and regional heads was held on 15th and 16th October, 2026 to revisit focus areas for the coming half year and the longer term.
- Gold loans: 116 customised gold loan branches are to be opened, with a turnaround time of a maximum of 30 minutes.
- SHG lending: tie-ups with 26 states under the NRLM, which management described as a good opportunity with good returns.
- Management said the bank is on track on almost all efficiency parameters except cost-to-income ratio, business-per-branch and CD ratio.
- RAM growth is expected to continue, supported by 65% of branches being in rural and semi-urban areas.
What an investor can take away
- The guided growth ranges for business, deposits and advances were exceeded, and the asset quality ratios stayed inside the stated thresholds.
- Two guided parameters were not met in this quarter: cost-to-income ratio (58.95% against less than 56%) and CASA (44.65% against 48% plus or minus 1%), both acknowledged in the remarks.
Also from Central Bank of India
Management participated in a one-on-one analyst/investor meet with Mytemple Capital Advisors LLP
22 Oct 2026
Management participated in a virtual one-on-one Analyst/Investor Meet with Arihant Capital Markets
21 Oct 2026
Central Bank of India MD & CEO Kalyan Kumar discussed Q2 results, credit growth of 30%, margin outlook, and plans to more than double the gold loan book to 1 lakh crore by next September
21 Oct 2026
More numbers
- Total businessRs.8,89,541 Crores
- Total domestic depositsRs.5,08,509 Crores
- Global advancesRs.3,81,032 Crores
- Net profit for the quarterRs.1469 Crores
- Net interest income for the quarterRs.4146 Crores
- CASA share of total deposits44.65%
- Gross NPA2.39%
- Cost-to-income ratio58.95%
Source: BSE · 23 Oct 2026
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