Ladies and gentlemen, good day and welcome to Central Bank of India Earnings Call for Q2
FY2027 financial results. Please note all participant lines will be in the listen-only mode and
there will be an opportunity for you to ask questions after the presentation concludes. Please
note that this conference is being recorded. With that, I hand over the call to Mr. Siddharth
Rajpurohit from Systematix Institutional Equities. Thank you and over to you.
Siddharth Rajpurohit:
Thank you Swapnil. Good morning everyone and welcome to Central Bank of India’s Q2
FY2027 post results earnings call. From the management today we have Shri Kalyan Kumar,
MD and CEO; Shri M. V. Murali Krishna, Executive Director; Shri Mahendra Dohare,
Executive Director; Shri E. Ratan Kumar, Executive Director and Shri Vivek Kumar, Chief
Financial Officer. I thank the management for giving us the opportunity and also congratulate
the team for a very strong result. I am handing over now the call to MD, Shri Kalyan Kumar,
for his opening remarks. Thank you.
Kalyan Kumar:
Thank you. My colleagues on the Board, Shri Murali Krishna Ji, Shri Dohare Ji, Shri Ratan
Kumar Ji, my senior team present here, and all the analysts connected through VC. Good
morning. First of all, I congratulate each one of you for this good Q2 2027 result. Your
beloved bank, Central Bank of India’s total business has been actually grown by 20.54% to
Rs.8,89,541 Crores and total domestic deposits increased by 14.41% to Rs.5,08,509 Crores.
CASA deposit also stands at 44.65% of total deposits. Global advances increased by 29.83%
to Rs.3,81,032 Crores, in which domestic advances stood at Rs.3,72,939 Crores, growth of
27% year-on-year. We have opened GIFT City Branch on June 29, 2026, which contributed
in overseas advance of Rs.8093 Crores and in this process we have given guidance for
business growth 14% to 15% and we have achieved 20.54%, in deposit growth our guidance
was 10% to 12% and we have achieved 14.41%, in advances growth our guidance was 14%
to 16% and we have achieved 29.83%. CASA guidance was 48% plus or minus 1%. Here,
due to obvious reason, due to FCNR(B) mobilization and other aspects, we could not meet
the market guidance, and we closed at 44.65%, but towards RAM sector, Retail, Agriculture
and MSME, as you know, Central Bank of India is having its 65% branches in rural and semiurban area. The RAM being our bread and butter for the organization, in which business grew
by 21.11%. The individual sector-wise growth is also very good. In retail we reached to
Rs.1,12,299 Crores with a growth of 24.49% year-on-year. In agriculture we reached to
Rs.67,778 Crores with a growth of 19.92% and in MSME we reached to Rs.74,196 Crores,
with a growth of 17.36% year-on-year basis. Actually, our guidance to market was RAM-tocorporate credit ratio 65:35 plus or minus 5% and we have closed at 68:32 and that ratio
actually also aligns with our market guidance which we have given.
Towards our efficiency side also, business per employee has improved to Rs.25.26 Crores on
year-on-year basis as against Rs.21.48 Crores for the quarter ended September 2025. In
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October 19, 2026
profitability, year-on-year basis for September 2026 quarter, net profit for the quarter has
increased by 21% to Rs.1469 Crores up from Rs.1213 Crores previous year. Operating profit
for the quarter stood at Rs.2268 Crores from Rs.1786 Crores with a growth of 27%. Net
interest income grew by 26.28% on year-on-year basis to Rs.4146 Crores in Q2 FY2027 as
against Rs.3283 Crores in Q2 FY2026. Total income for Q2 FY2027 improved by
approximately 15% and reached to Rs.11,737 Crores for Q2 FY2027. Cost-to-income ratio,
though there is improvement but still it is on higher side it is 58.95% for Q2 FY2027 as
against 62.42% Q2 FY2026. Cost-to-income ratio, we have given guidance for less than 56%,
but here we could not match the guidance and closed at 58.95%. Major highlight, I would
like to make that apart from stock cost that is 37.65%, there was 113-basis point improvement
in other operating expenses year-on-year basis. Then as quarter-on-quarter also, it will give
you comfort that quarter-on-quarter basis also, net profit grew by 11%, Rs.145 Crores in
absolute terms to Rs.1469 Crores. Operating profit grew by 3.75% i.e. Rs.82 Crores in
absolute terms to Rs.2268 Crores, net interest income grew by approximately 6% Rs.232
Crores in absolute terms to Rs.4146 Crores, interest income grew by approximately 7%
Rs.666 Crores in absolute terms to Rs.10,357 Crores, ROA improved by 3-basis points and
stood at 1.03%. Here I would like to mention NIM, we have given guidance of above 3% and
we have maintained at 3.01% and slippage ratio we have given guidance of less than 0.25%
and it is 0.24%.
Then regarding asset quality also our gross NPA stood at 2.39% that is also aligned with our
guidance given to the market that it will be below 2.50%. Net NPA stood at 0.31%, also there
is an improvement of 17-basis points and that is also in alliance with our guidance to the
market. Provision coverage ratio stood at 97.16% and regarding slippage ratio, as I told, for
the quarter, it is 1.24%, and it is well within our guidance of 1.25% on quarter-on-quarter
basis. In that way, I can tell you on almost all the parameters of efficiency except cost-toincome ratio, business-per-branch, and CD ratio, Bank is on track. I will highlight that
liquidity coverage ratio improved to 156% and overall improvement in almost all the
efficiency parameters and business numbers. Now, I really thank all our stakeholders,
including our customers, regulators, governments, and all you beloved shareholders and
stakeholders of this great organization, Central Bank of India. This was my initial remark, I
conclude here. Now I am open to the questions.
Moderator:
Thank you so much Sir. Ladies and gentlemen, we will now begin with the question-andanswer session. Anyone who wishes to ask a question may click on the raise hand icon from
the participants tab on your screen. We will wait for a few minutes until the question queue
assembles. We are taking our first question now. We have Mr. Ashok Ajmera of Ajcon
Global. Mr. Ajmera, please unmute your microphone and go ahead with your question. Mr.
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Central Bank of India
October 19, 2026
Ajmera, we are waiting for your connection. Please go ahead with your question now. Please
unmute your microphone and go ahead.
Ashok Ajmera:
Can you hear me now?
Moderator:
Yes.
Kalyan Kumar:
Ajmera ji, you are not audible now.
Moderator:
Mr. Ajmera, would you like to try one more time? We are unable to hear you. Alright. We
will move to our next registered member. We have Mr. Sushil Choksey of Indus Equity. Mr.
Choksey, please unmute your microphone and go ahead.
Sushil Choksey:
Congratulations to team Central Bank for excellent performance and sustainable guidance.
Sir, I was looking at your business mix and can you throw some color, you guided on the CD
ratio and the business mix for the second half, but can you see within RAM where are you
seeing growth or it is per ticket average housing loans, car loans, which are growing or any
other segment like gold loan, which is becoming a major force at Central Bank and you will
have a very ambitious target, that is what I hear from the marketplace.
Kalyan Kumar:
Yes, thank you Mr. Choksey for asking this very good question. Regarding business mix, we
have seen ratio of corporate and our RAM is 38:68. It aligns with actually our guidance given
to 65:35 plus or minus 5% and growth of RAM sector was 21%. We reached the level of
Rs.2,54,273 Crores and within which retail has grown by 24.49%, agriculture has grown by
approximately 20%, MSME has grown by approximately 17%. So, good growth in all these
three segments and rightly pointed out by you, this is going to continue because Central Bank
of India is having its 65% branches in rural and semi urban area, which gives us this capability
to support this important part of Indian economy. We will continue to grow with that, but
rightly said by you, two latest growth engine in previous quarter, it was also there but here
during last two days October 15, 2026 and October 16, 2026 we have mid-term strategy meet
with our all general managers and regional heads, collectively we brainstormed regarding
revisiting our strategies towards focus areas and how to grow and not only next half year but
in longer term also. There we have important growth engine for gold loan side. We are going
to open, customize 116 gold loan branches where our TAT would be maximum 30 minutes
and within that all customization is being done. In gold loan portfolio, we are planning to add
a good amount of business, not only in next quarter but also next year I can tell you. Another
focus area is SHG. We are having tie-up arrangement with the 26 states NRLM and those are
actually good opportunity to give great linkage to those SHG members that return is also very
good in the SHG side and also there is very good opportunity to support these segments. In
that way, the gold loan and SHGs are going to be the focus area. Apart from housing loan,
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Central Bank of India
October 19, 2026
our more than 50% advances under retail comes from housing loan. This is going to be the
flag carrier now also. Car loan also, better dealer tie-up, both builder tie-up and car dealer tieup are going on. More and more CASA accounts, salary accounts, we are focusing upon in
this quarter and actually, planning we have done for centering into the educational issues, the
religious trusts, hospitals and other transport operators in a big way because we have
established our marketing setup at different places. 300 marketing officers we have recruited
in our bank, so with that workforce available and different products available for different
segments of customers, those CASA customers will give an opportunity for particularly
salary account customer, good opportunity for cross-selling of personal loan also. These are
going to be our priority in next quarter. Thank you.
Sushil Choksey:
Sir, I would ask you if you could give me if there is an uptick in average ticket in gold loan
not only because of price but the borrowing pattern and the same for housing loan and car
loan because a lot of traditional Indians are moving from small cars to SUVs, the similar way
gold prices have moved up and housing market is also 10% to 20% up on a national average
basis, so is the number of loans increasing or the average ticket is increasing?
Kalyan Kumar:
Both I will give you one example, very recently in home loan, Rs.22 Crores green home loan
we have provided and even ticket size is not a bar for us, no restrictions is there. Now, I can
tell you, average ticket size is increasing day-by-day for housing loan and car loan also. So,
depending upon our credit underwriting and utility of borrower, that is never a bar and
naturally, we are more focusing on the good builder side where better ticket size is available,
but as we are having our branches at rural semi-urban, where lower ticket sizes, up to Rs.30
lakhs it is totally online process now and above Rs.30 lakhs, normal underwriting part is there
and ticket size, as you are saying, that it is going to be our priority as we have geared up our
CPAC also. We have revisited CPAC structure so that they are in a position to take even big
ticket loan, not only in a housing loan or car loan processing, but also for MSME loan, 32
places we have identified. Separate team managers are posted so that they can even
underwrite the higher ticket size MSME loan also. It is both, I will say, numbers of customers
and also ticket size wise also good number of customers will underwrite with the strength
which Central Bank of India is having now.
Sushil Choksey:
Sir, two questions. How do you see CASA growing from here till March end and the deposit
base? I know your guidance number would be 12% to 14%, 15% but strength of Central Bank
has always been CASA. If you look historically over last 15 years or 10 years despite being
in PCA that time also deposit was our strength and the franchisee is very strong in western
region. How are we strengthening further cross-selling this CASA base? You said about
salary accounts, but what other factors including digitization, digital apps, cross-selling, you
have tied up with multiple insurance as well as mutual funds, you may be tying up for
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brokerage houses, so to enhance Central Bank strength with certain multiple new ventures,
and second, what is the corporate pipeline looking from now? I understand we are very good
at RAM, but a balance of 65:32, 65:35, or 62:38 what area of business are we focusing on
corporate book too and the third question would be your outlook on treasury?
Kalyan Kumar:
Yes, regarding CASA growth, rightly said by you, people love Central Bank of India, having
115 years in service to the nation, therefore, it is being reflected in our CASA numbers also.
I will give you one number. Our CASA has grown by 9.23%. We have crossed Rs.2,26,774
Crores, growth of 9.23%. Savings deposit has grown by 9.32% and current account deposits
also has grown with the kind of initiatives we have taken for CASA growth. As I told you,
we have multiple customer acquisition centers and government business centers also we have
opened. In that way, we are geared up to play whatever strength we are having.
Geographically, you also told western side we have good presence, but we are having good
presence in Bihar, Uttar Pradesh, and also Maharashtra side. These are the areas, Madhya
Pradesh also we are having good number of branches and good presence, 2658 branches out
of 4622 branches of Central Bank of India are having CASA percentage 50% and more. That
is the strength Central Bank of India is deriving due to its geographical presence and the
initiative which we have taken since last one year. Setting up of the customer acquisition
centers, government business centers, placement of the 300 additional marketing officers,
200 to 250 marketing officers were already there. This 500, 600 marketing team and now we
have also started wealth management. It is just the beginning, and we have recruited some
marketing officer at a wealth segment and we are going in a big way, from next January to
June quarter, it may come in force fully, but now we have started, those things also will
support our bank in not only mobilizing good CASA accounts, but also maintaining those
CASA accounts with us. The CASA is the strength of this organization and with the initiatives
which we have taken certainly it is going to continue. In June or so, we are going to start with
our credit card franchise, which will support in mobilizing salary accounts and all. No doubt,
if salary account increases then you have a good opportunity for cross-selling for all the retail
products and also selling of other ancillary business and everything would be there. Cash
management services also is going to be launched very soon. Two modules already launched,
other modules in next few months we are going to launch that will support us in mobilizing
current account from our corporates and also new customers. Regarding your second
question, Corporate is approximately 7000 crores we are having undisbursed sanctions that
we are having, and under process is 5000 Crores and under consideration, 11,000 crores. So
corporate loan book, 24,000 loan book under consideration we are having. In the very near
future, we are sure that we will get good traction in this corporate You see, previous year our
corporate book was 83,000 Crores, this year it has grown by 44%, 1,18,666 Crores that is
good growth and major area was actually roads, infrastructure, and also data center,
technology side. All these things were our focus area, LRD. These were our focus area. Agri,
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Central Bank of India
October 19, 2026
food processing, also some finances to NBFC, hospitality sector, so these were actually major
area where we focused and in coming quarter also we are going to focus upon. Regarding
treasury, as treasury yield is hardening. We ended by more than 7%, 7.19% yield during
September 30, 2026 period. Now also it is progressing higher, 7.25%, 7.40%, so that actually,
due to global turmoil and also rising interest rate scenario, rising inflation, and also having
US rate of 5.35% plus that scenario actually does not bring comfort towards better treasury
income. If you see our AFS, previous quarter from Rs.843 Crores to this quarter Rs.1023
Crores there was a reduction. Mark-to-market challenge was there and in the coming scenario
also, we are observing as yield is getting increased in that circumstances from treasury there
are challenges. Though our treasury team has done a good job, they earned Rs.56 Crores by
selling IPOs, by participating in IPOs and also, in the higher yield condition, the reinvestment
side also, we will reinvest our maturing the securities and all to get better benefit. The outlook
of treasury is the best opportunity. Market is not good you are aware because in AFS side,
which is more exposed to market condition, is a challenge and it is, in my opinion, is going
to continue in near future also, but building our portfolio judiciously and look not only driving
the interest rate but also understanding properly and building our portfolio and reinvesting
the things and the opportunity available within the law. I feel that treasury outlook would be
challenged but it will contribute to the profitability as it has contributed this quarter also.
Moderator:
Thank you so much Sir. Mr. Choksey if you have any more questions you can rejoin the
queue. We will take our next question now. We have Mr. Ashok Ajmera back in the queue
here from Ajcon Global. Mr. Ajmera, please go ahead again.
Ashok Ajmera:
Sorry, Sir. There was some technical problem and I have missed some of your replies also.
Can you hear me now?
Kalyan Kumar:
Yes, Ajmera Ji. You are always welcome.
Ashok Ajmera:
Sir, congratulations for a very good set of numbers and the Bank is really doing very well,
even under your leadership also. Sir, going forward, like most of the questions, initially your
address you have answered, but one is that on the ECL provisioning I might have missed your
answer, that how prepared we are, what is the total quantum will be to be provided, can you
give some color on that, Sir, some information?
Kalyan Kumar:
Yes, Ajmera ji. Actually, ECL provisioning, previous quarter also I told Rs.1525 Crores for
Stage 1, Stage 2 we have provided till now and Stage 3 100% provision is there and Bank is
prepared for meeting this requirement. Models are being prepared, data, quality, and all those
aspects we are working and we expect that we have given guidance in this quarter,
approximately Rs.5000 to Rs.5500 Crores may be required and with the kind of profit Central
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Central Bank of India
October 19, 2026
Bank of India is garnering, we are sure that it is not going to be a challenge for Central Bank
of India for meeting ECL requirement scheduled for implementation from April 1, 2027.
Ashok Ajmera:
Point well taken Sir. Sir, we are doing very well in the retail side of the loans even our home
loan rates are also very, very competitive, going forward I might have missed your answer
what is the plan of increasing the corporate book and where do we stand and what is the
average yield now we are expecting from the corporate book and what is the sanction pipeline
and the proposals which are in pipeline?
Kalyan Kumar:
Previous year if you see our corporate book in September 2025 was Rs.83,000 Crores and
this September 2026 we have closed at Rs.1,18,666 Crores with a growth of 42% and out of
total book 32% comes from this corporate side. There is increase year-on-year, which is 42%
in corporate book size and actually, regarding pipeline, pending disbursement is Rs.7000 plus
Crores and a proposal of Rs.5200 plus Crores is under process and Rs.11,000 Crores are under
consideration. They may come in the NBG and all. Approximately Rs.24,000 Crores,
corporate loan book, at present, we are actually having. So we will have good growth in
corporate side. Regarding the credit yield, this year, overall, average yield was 7.87% on
advances. Major areas that we are focusing upon, is renewable energy, roads, and also data
center, some exposure in real estate, hospitality, and manufacturing segment, NBFC, agrifood processing, logistic side, these are the major areas where actually we are focusing upon
in this quarter and coming quarter.
Ashok Ajmera:
Very good, sir. Coming to the recoveries, recovery from the written off book has been decent.
So going forward, what do we expect? We expect some more major bounty from this. What
is our total written-off book balance outstanding and how much we expect on an average in
percentage terms? Secondary on the recovery is, that old aviation account, so what is the
status there, are that additional collateral which we had of 1200 Crores or 1500 Crores odd,
whether that has been realized and how much recovery has already taken place and how much
more we do expect to recover from that account sir?
Kalyan Kumar:
See, recovery in written off was Rs.485 Crores in this quarter good number we have got. If I
talk about the pool, it is Rs.31,301 Crores. We are having ample pool now also written off
accounts from where we can actually recover good significant amount. Previous year you
have seen more than 2,000 to 2,700 Crores we have recovered for the full year. This year also
I find sufficient ground and sufficient resources available to recover 2,500 plus Crores in this
segment. Regarding answering your aviation sector account, recovery is expected of Rs.700
Crores through SARFAESI and the auction process is going on, and we have got bidder also.
We may get Rs.700 Crores in this aviation account in this current quarter or next quarter.
There are some big accounts, and smaller accounts also, from where we will improve our
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recovery numbers. I can assure you that kind of book and things available with us recovery
numbers are going to be better than what we have done in this quarter. I am fully confident
about that.
Ashok Ajmera:
Very good, sir. On the recovery for the small account under the OTS, how are we framing
our policies and are we liberal to get at least those accounts where 100% provision has already
been made and the securities are minimal? What is our emphasis of recovering on those small
recoveries which may make a good amount in the absolute terms?
Kalyan Kumar:
Thank you Ajmera ji for asking this question. See, smaller accounts for that special OTS
scheme we have got approved from our Board and it is very transparent process. We are
coming with this technological capability, we call it E-OTS and here aid of NPA and
availability of security and provision. These are the logic to which system itself derives that
this amount if you pay, OTS would be done through digital process and branch assisted
process, this we are going to implement very soon. There is another scheme which is called
Kisan Rin Mochan scheme. Through BCA scheme, small value accounts, we are recovering
a good amount in a very transparent manner. And you are right, because we deal with retail
business. Put a number under slippage, under Rs.10 lakh segment. There are all these major
electronic OTS, and this Kisan Rin Mochan scheme through BC agents and all these things
are going to be very effective tool and support us in recovering the desired amount as per
regulatory guidelines and cleaning up our books. So, our focus is also there and auctioning
the property available for collateral security are there. I am giving you one example. Previous
year, total auction of properties was 485. This half year we reached that number. Very
effective monitoring of SARFAESI process is also actually bringing both customers on the
negotiation table, through OTS mode also. we are recovering significant amount and closing
those accounts through OTS also. That way I can tell you from recovery side, the asset quality
which we are observing 2.39 and 0.31 net NPA, it is going to be continuously, you will find
improvement in these numbers in coming days.
Moderator:
Thank you so much, sir. Mr. Ajmera, if you have any more questions, you can rejoin the
queue. You can click on the raise hand icon again if you wish to ask a question. We will move
to our next participant. Before that reminding all the participants, if you have any questions,
please click on the raise hand icon from the participants tab on your screen. We are taking
your next question now. We have Mr. Rajesh Agarwal of AUM Capital Markets. Mr.
Agarwal, please unmute your microphone and go ahead.
Rajesh Agarwal:
Thank you, sir. Good morning, Mr. Kalyan.
Kalyan Kumar:
Good morning.
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Central Bank of India
October 19, 2026
Rajesh Agarwal:
From the last few quarters, we have been tracking Central Bank and let me congratulate you
for the kind of numbers that you have given in the last quarter and followed by this quarter.
It was really good, I would say. And I would say we are very satisfied with the kind of
numbers because we have recommended to so many of our clients. There was just one query
which I would like to have a clarification like reported gross NPA, net NPA, slippages, they
all improved, yet provisions went up. Can you throw some light on the breakdown of the
provisioning, whether into standard assets or floating or technical? Why this specific
provisions went up and which segment, maybe specifically retail, MSME or unsecured loan,
where the reasons for this higher provision? And the last one would be, what is your credit
cost guidance for FY2027?
Kalyan Kumar:
Yes, thank you Rajesh Agarwal ji for your good words for Central Bank of India. You are
right, our gross NPA, net NPA, and slippage ratio are under control and provisions have
increased actually and credit cost also, you see, 0.53% in this quarter. Though they are well
within, because credit costs we have given guidance of that need to remain up to 0.75%, it is
0.53%, and PCR is 97.16%, that is also well within our guidance given to the market. But
reason, what you have asked, actually you know, we must build enough provision in good
times for facing any challenges or anything which may come in future. It is very resilient and
I will say the resilient approach which Bank has taken. And for that purpose, you must have
been observing that our provision coverage ratio has increased since last quarter. That is the
main reason. Otherwise, another one important reason, our standard advances also have
grown significantly because previous year, September 2025, Provision on Standard Advances
was 30 or 37, now it is 399. That increase is there. So these are the reason behind increase in
credit cost side. Hope I have answered your question Rajesh Agarwal ji.
Rajesh Agarwal:
Thank you sir. Thank you so much and best wishes for future quarters too. Thank you so
much sir.
Kalyan Kumar:
Thank you.
Moderator:
Thank you Mr. Agarwal. Requesting participants to please click on the raise hand icon from
the participants tab on your screen. We will take our next question. We have Mr. Ashlesh
Sonje of Kotak Securities. Please unmute your microphone, Mr. Sonje. Yes, please go ahead.
Ashlesh Sonje:
Hi, team. Good morning. Sir, few questions from my side. Firstly, on the ECL, you have
reported a credit cost of roughly 50-basis points in this quarter. Do you have a sense of how
much your credit cost will be next year after you have transitioned to the ECL regime?
Kalyan Kumar:
Yes, Ashlesh, thanks for this question. Actually ECL, we are preparing, I understand. The
banks which are having better credit underwriting would have better control over the credit
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Central Bank of India
October 19, 2026
cost. And this year credit cost 0.53 is actually, you must have observed, the answer which I
have just now given to Rajesh Agarwal ji. We have just to give you comfort and make you
understand in a better way how Central Bank of India is prepared or preparing itself to face
the consequences of implementation of ECL, that will give you answer. March 2025, our
slippage ratio was 1.47, March 2026 is came down to 1.16. And this quarter, it is 0.24. And
for half year, it is 0.41 to 0.45. What I mean to say, we are preparing ourselves, graduating
ourselves to take challenge of ECL, starting from better credit underwriting quality. So, there
we are having one processing centers, that we call CPAC, Credit Processing and Approval
Center, which is normally all Regional office, have the CPAC setup. Earlier in principle
approval concept was not there. You all are aware that in branches, credit generating skills
are very rare. Therefore, all branches, whatever leads they are generating, they will send to
the credit processing centers at Regional office, they will give in principle sanction and also
the role of this underwriting quality, after that monitoring of those advances, monitoring and
match mandates and also proper alignment with the field force, field owners, street persons,
and also regional collection centers, head office, war room, and all the technological
capability also for generating early warning signal alerts and acting upon those alerts in a
very structured way we have implemented these aspects. Therefore, credit monitoring
division is doing a good job in maintaining good asset quality, starting from underwriting to
post-trade monitoring also. So in that way, I can tell you next year also I am expecting quarteron-quarter basis, it is going to remain less than 0.75%, up to 0.75% only. This guidance which
we have given, we are going to maintain this guidance next year also. Ashlesh, Hope I have
answered your question.
Ashlesh Sonje:
Understood, sir. One follow-up there. On the ECL one-time transition, you indicated that the
quantum is roughly Rs.5000 Crores. That would be taken as a direct hit to the net worth on
the 1st of April. Is that understanding correct?
Kalyan Kumar:
Actually, see, our total requirement will be Rs.5,000 Crores to Rs.5,500 Crores. Out of that
Rs.1,525 Crores, already we have kept an additional provision. So difference only we will
have to take. And the way we are making profit, it will not be a bigger call. And options given
by regulator both taking one-time hit or staggered, we will discuss together and we will take
a call on this. Currently, I am not in a position to comment on this part whether we will take
one time hit or will stagger it.
Ashlesh Sonje:
Understood sir. And just one last thing, the ROA seems to have improved quite a bit over the
past few quarters. Can we assume that this ROA will remain let us say about 1% for the
foreseeable future?
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Central Bank of India
October 19, 2026
Kalyan Kumar:
I am fully confident that ROA is going to be above 1%. The guidance which we have given,
I am still agreeing to it, and I am sure because 25-basis point, repo rate has increased. We
have maintained our deposit, cost of deposit at 4.60% and yield on advances 7.87%. Now we
are focusing upon gold loan side, SHG side, these are the growth engines where we are
focusing upon, apart from our retail, agriculture, MSME. Our 61% loan book are linked to
external benchmarking. In rising rate scenario, which we expect, our books are going to be
more it is going to benefit our book size. In that way I am sure that our ROA is going to
remain above that.
Ashlesh Sonje:
Kalyan, this expectation holds true for let us say next year also FY2028, FY2029, is that an
endeavor you have?
Kalyan Kumar:
See, our endeavors are like that, but situations are changing very fast. It would not be prudent
to comment upon for next year, because you know, things are changing very fast. Global
conditions are also impacting. Within the country also, some broad condition, El Nino effect,
all these things are there. But I am confident about the strategies which we have taken and
the strength, Central Bank of India is having. In CASA side, mobilization of low-cost deposits
while other organizations are struggling. Our growth is still more than 9%. The low-cost
deposits mobilization is not a challenge for us. And the advances side also, this external
benchmarking rate, 61% books are belonging to that. Gold loan would have very good
traction always. And SHG also good yield is there. Therefore, I am hopeful that our ROA is
going to remain above one.
Ashlesh Sonje:
Understood. Perfect, sir. Thank you very much for answering my questions.
Kalyan Kumar:
Thank you, Ashlesh.
Moderator:
Thank you so much. Requesting participants to click on the raise hand icon from your
participants tab on your screen. We are taking your next question now. We have Mr. Deepak
Kala of Trimurti Enterprise Private Limited. Please go ahead.
Deepak Kala:
Good morning, sir. First of all, congratulations for such good numbers. Sir, my question is on
yield on advances. When I see the yield on advances for bank, it is comparatively lower when
we compared it with other banks. So could you please tell me the steps we are taking to
increase the yield on advances?
Kalyan Kumar:
Deepak actually thanks for this question. You are right. Yield on advances is 7.87%. As I told
you, this is the actually for this quarter also and in earlier quarter also if you see, our more
than 61% book are linked to external benchmark that is repo rate. And previous year 125basis point reduction was there in reference lending rate and that has impacted our book very
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October 19, 2026
high. And if you see the cost of repo rate side as it is contract based, it takes time, it comes
with lag when it gets stabilized. The norm is 4.60 and as you can see, yield on advances, that
is why we were able to manage NIM above 3 and ROA more than 1. So yield on advances
that is why we were biggest impacted. Our portfolio actually impacted due to those rate cuts.
But in coming days, when rates are going to increase, so it will benefit in improvement in
yield on advances, one thing. And another aspect, which is also very important, gold loan.
More than 8.5% is the average yield which we derive from the gold loan side. And we have
built book Rs.41,000 Crores. That is good growth and with that kind of initiative gold loan
sale we have established under direct leadership of our executive director business. And gold
loan, it is going to be because 86 branches we are having in South India. We are focusing
upon Chennai and Hyderabad, these two zones on gold loan side. That will also support as
improvement in yield. SHG, more than 26 states we are having tie up with NRLM. There also
credit linkage with SHG, there also good return and less NPA is there that is why these are
the focus area when I am expecting that yield on advances will increase in coming quarters.
Deepak Kala:
Sir, thank you for the answer. One more follow-up. I want to know about the investment in
technology the Bank is making because when I compare the apps of our Bank and when I
compare it with the apps of let us say the biggest bank in India, so there is some difference in
the technology and interface.
Kalyan Kumar:
Deepak, actually see, current customers wants very good technological platform. There is no
second thought about it. And where mobile banking and other technological like internet
banking, like all these user experience is very important. For that purpose, we have created
new banking emerging department, NBET. And the person who can understand customer's
requirement, he is heading that division. He was earlier heading our biggest zone. Just we
have given them this opportunity to lead this division so that a person who have better
understanding about user experience so that we can bring fine-tuned changes, which is desired
from the customer's perspective. It is our topmost priority, what you are indicating, I
understand. And that area, if not improved, then all the improvements, we cannot sustain.
That also, I agree with you. For CASA or any other user experience is very much important.
But that I can tell you and a lot of initiatives we are taking in digital side also. 45 journeys
already we have launched, we are revisiting also, so that looking to the change customer
choice or also having better alternatives, provided by our competitors. We are also fine tuning
all those journeys and channels to improve in their experience that is top most priority, next
quarter you will find significant improvement in these areas also.
Deepak Kala:
Thank you for the answer, sir. That is it from my side.
Kalyan Kumar:
Thanks Deepak.
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Central Bank of India
October 19, 2026
Moderator:
Thank you. We will take our next question. Now we have Siddharth Rajpurohit of Systematix
Institutional Equities. Siddharth, please go ahead.
Siddharth Rajpurohit:
Thank you for the opportunity. So, our NIM has come down say 5-basis point this quarter,
but the repo rates have started to move up. So what is our assumption? Will our margins also
improve from Q3?
Kalyan Kumar:
As I told our advances book, total advances book 68% is RAM segment. Out of those 61%
linked to external benchmark and there if repo rate, reference rate increases, then certainly
there will be positive impact on yield of our portfolio. Therefore, there are every likelihood
that margin will increase in this increasing rate scenario.
Siddharth Rajpurohit:
And sir, how do you see, sir, our gross slippages are kind of hovering down for the last three
quarters. But what is your understanding, sir, how do you see the implications of El Nino if
one state has declared drought and others could also. So how do you see this scenario
evolving? Do you see any impact on the collections in the rural areas?
Kalyan Kumar:
First of all, in this quarter, we did not sense any such kind of stress signals. Recovery is very
good including agricultural side also, except some places like Pune, there was slippage in
agricultural segments. There might be other reasons for it, but apart from that, we did not find
any signal of distress in asset quality in rural area. That is why there is significant drop in
slippage in number and thanks to the vertical CRMD for taking all the corrective steps and
proactive steps rather, and also field soldier and technology integration, war room, better
coordination that has really supported us in maintaining slippage ratio. Regarding your
question of El Nino impact on drought in the country, right, this is a right impact, but we have
to look at in future how it actually progresses. Current time, based upon my experience of
this quarter, I cannot comment that there might be big challenge, but how I pan out in coming
quarter and afterwards regarding this drought let data come then I will be in a position to
comment about it.
Siddharth Rajpurohit:
Okay sir. There was a reversal in provision in the investment part in the SRs. Can you throw
more light on that sir? Reversal of provisions.
Kalyan Kumar:
Mr. Bhaskar, General Manager - Treasury will answer this question.
Dr. G. Bhaskar:
Good afternoon. This one is mainly on account of we have received some amount as a part
payment. We have received some amount as a part payment. That is why the provision made
is lower when compared to the previous quarter. However, we made 100% on that one. So
outstanding is reduced. So we have seen the reversal in the provision.
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Central Bank of India
October 19, 2026
Siddharth Rajpurohit:
What is the total disbursement, sanction and disbursement under the ECLGS scheme now,
the ECLGS 5.0?
Himanshu Gupta:
Sir, under ECLGS, under MSME segment, we have sanctioned around Rs.4000 Crores and
disbursed almost the entire amount and only Rs.50 Crores to Rs.60 Crores is balance
remaining for the disbursement.
Siddharth Rajpurohit:
Okay. And sir, what is the amount of FCNRB deposits that we have raised in the quarter?
Kalyan Kumar:
Yes, we have raised a good amount, actually 926.74 million USD across 731 accounts.
Siddharth Rajpurohit:
Sorry, sir, what is the amount?
Kalyan Kumar:
926.74 million USD across 731 accounts.
Siddharth Rajpurohit:
Okay, sir. And what is the overseas loan that is provided against this deposit, sir?
Kalyan Kumar:
794.60 million USD.
Siddharth Rajpurohit:
Okay and sir, what is our current average LCR?
Kalyan Kumar:
Average LCR, that is 156%.
Siddharth Rajpurohit:
Okay sir, thank you. I am done.
Kalyan Kumar:
Siddharth, thank you.
Moderator:
Thank you, Mr. Rajpurohit. Since there are no more questions in the queue, I will now hand
it over back to the management for closing remarks. Over to you, Mr. Kumar.
Kalyan Kumar:
Thank you from the core of my heart, I thank all the stakeholders, and I assure that in coming
quarters and also next quarter the kind of interventions we have taken on bringing overall
improvement in people, process and technology will certainly going to sustain these numbers
and also there will be significant improvement in efficiency numbers in coming quarter. Once
again, thanks for connecting and thanks for showing interest in Central Bank of India. Thank
you.
Moderator:
Thank you so much. Ladies and gentlemen, this concludes the Central Bank of India Q2
FY2027 Earnings Call. Thank you all for your participation. You can now click on the leave
icon to exit the meeting. Thank you everyone.
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