How has been the historical performance of Central Bank?

Revenue and Income Growth

Central Bank’s interest earned has shown a robust upward trend, rising from ₹22,638.57 crores in March 2019 to ₹33,665.85 crores by March 2025. This growth is underpinned by a steady increase in income from investments and advances, with interest on advances/bills notably climbing from ₹12,949.75 crores in 2019 to ₹22,339.08 crores in 2025. Other income streams have also contributed positively, with total income reaching ₹39,520.44 crores in the latest fiscal year, up from ₹25,051.51 crores six years prior.

Net interest income, a critical profitability indicator, has more than doubled over this period, rising from ₹6,772.18 crores in 2019 to ₹13,896.89 crores in 2025, reflecting improved asset utilisation and interest margin management.

Cost Management and Profitability

Despite rising employee and operating expenses, total expenditure excluding depreciation has increased at a controlled pace, from ₹6,058.63 crores in 2019 to ₹11,627.17 crores in 2025. The bank’s operating profit before provisions and contingencies has more than doubled, reaching ₹8,124.31 crores in 2025 compared to ₹3,126.49 crores in 2019, indicating enhanced operational efficiency.

Provisions and contingencies have decreased significantly from ₹11,296.71 crores in 2019 to ₹3,190.04 crores in 2025, reflecting improved asset quality and risk management. Consequently, profit before tax has swung from a substantial loss of ₹8,170.22 crores in 2019 to a healthy profit of ₹4,934.27 crores in 2025. After tax, the bank posted a profit of ₹3,785.26 crores in 2025, a marked improvement from the ₹5,641.48 crores loss in 2019.

Asset Quality and Capital Adequacy

Central Bank has made notable strides in improving asset quality. Gross non-performing assets (NPAs) have declined sharply from ₹32,356.04 crores in 2019 to ₹9,224.78 crores in 2025, while net NPAs have reduced from ₹11,333.24 crores to ₹1,543.26 crores over the same period. Correspondingly, the percentage of net NPAs has dropped from 7.73% to a low 0.55%, signalling a healthier loan book and better credit risk management.

The bank’s capital adequacy ratio (CAR) has strengthened considerably, with the total CAR rising from 9.61% in 2019 to 17.02% in 2025, and Tier 1 CAR improving from 7.49% to 14.73%. This enhanced capital buffer supports the bank’s growth ambitions and provides resilience against potential credit shocks.

Balance Sheet Expansion and Deposits

Central Bank’s total assets have expanded steadily, reaching ₹4,79,288.93 crores in 2025 from ₹3,57,089.33 crores in 2020, reflecting a growing franchise and increased lending capacity. Deposits have similarly grown from ₹3,13,763.16 crores in 2020 to ₹4,12,697.14 crores in 2025, supported by a stable CASA ratio near 49%, which indicates a strong base of low-cost funds.

Advances have surged from ₹1,51,100.88 crores in 2020 to ₹2,82,419.87 crores in 2025, underscoring the bank’s focus on credit growth. Investments have remained sizeable and stable, hovering around ₹1,40,000 crores, providing liquidity and income diversification.

Cash Flow and Shareholder Returns

Cash and cash equivalents have fluctuated over the years, with a closing balance of ₹36,196 crores in 2025, slightly down from ₹37,607 crores in 2024 but reflecting prudent liquidity management. Shareholder funds have grown from ₹21,429.47 crores in 2020 to ₹36,506.08 crores in 2025, supported by retained earnings and capital infusion.

Earnings per share (EPS) have improved markedly, turning positive after years of losses. The EPS rose from a negative ₹13.94 in 2019 to a positive ₹4.18 in 2025, signalling restored profitability and value creation for shareholders. The book value per share has also increased steadily, reaching ₹36 in 2025 from ₹27.43 in 2022, reflecting enhanced net worth.

Outlook and Summary

Central Bank’s historical performance reveals a compelling recovery story characterised by strong income growth, improved asset quality, and enhanced capital adequacy. The bank has successfully navigated through challenging periods of losses to establish a stable and profitable business model. Operational efficiencies and prudent risk management have been key drivers of this turnaround.

While the bank has made significant progress, continued focus on maintaining asset quality, managing costs, and sustaining deposit growth will be crucial to support future expansion and shareholder returns. Investors should consider these factors alongside the bank’s improving fundamentals when evaluating its prospects.

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