Are Central Bank latest results good or bad?

Central Bank of India has reported its financial results for the quarter ending June 2025, highlighting several operational trends. The bank achieved a profit after tax (PAT) of Rs 1,168.69 crore, marking the highest figure in the last five quarters and reflecting a notable increase compared to the average PAT from the previous four quarters. Additionally, the earnings per share (EPS) reached Rs 1.29, also the highest in five quarters, while the annual dividend per share (DPS) was recorded at Rs 0.19, the highest in five years.
The bank's gross non-performing assets (NPA) ratio decreased to 3.13%, and the net NPA ratio stood at 0.49%, both representing the lowest levels in five quarters, indicating a reduction in stressed loans. However, the operating cash flow was reported at Rs -2,468.93 crore, which, while being the highest in three years, raises questions about the sustainability of cash generation from business operations.

On the other hand, net interest income fell to Rs 3,383.25 crore, the lowest in five quarters, and non-operating income constituted 100.15% of profit before tax, which could be a concern for future profitability. The company saw an adjustment in its evaluation over the past three months, reflecting these operational trends.

In summary, while Central Bank of India has shown positive results in terms of profitability and asset quality, there are areas of concern regarding income generation and sustainability.