💰 Financial Performance

Revenue Growth by Segment

Total income grew 11.5% to INR 39,520 Cr in FY25 from INR 35,434 Cr in FY24. Interest income on advances rose 13.36% YoY to INR 22,339 Cr. Fee-based income for H1FY26 was INR 1,054 Cr, a slight decline of 0.57% YoY. Treasury income saw a significant decline of 52.55% YoY to INR 186 Cr in Q2FY26 compared to INR 392 Cr in Q2FY25.

Geographic Revenue Split

The bank operates a pan-India network of 4,556 branches and 4,174 ATMs as of September 2025. While specific regional revenue percentages are not disclosed, metropolitan cities account for 53.2% of total bank deposits as of March 2025, up from 50.9% in 2020.

Profitability Margins

Net Profit for FY25 was INR 3,785 Cr, up 48.5% from INR 2,549 Cr in FY24. Net Interest Margin (NIM) moderated to 3.05% in FY25 from 3.09% in FY24, further declining to 2.89% in Q2FY26 (a 52 bps YoY drop). Return on Assets (ROA) improved to 0.82% in FY25 from 0.60% in FY24.

EBITDA Margin

Operating profit was impacted by treasury income volatility, falling from INR 664 Cr to INR 186 Cr in a single quarter. Cost-to-Income ratio increased to 62.72% in Q2FY26 from 57.19% in Q2FY25, driven by a 339 bps increase in staff cost share and a 214 bps increase in other operating expenses.

Capital Expenditure

The bank raised INR 1,500 Cr through a Qualified Institutional Placement (QIP) in March 2025 to strengthen its capital base. Specific historical and planned physical CAPEX for branch infrastructure is not disclosed in INR Cr.

Credit Rating & Borrowing

The bank maintains a strong liquidity profile with a Liquidity Coverage Ratio (LCR) of 241.96% as of September 2025. Cost of deposits increased 21 bps YoY to 4.88% in Q2FY26. Capital Adequacy Ratio (CRAR) stood at 17.34% in H1FY26, well above the 11.5% regulatory requirement.

⚙️ Operational Drivers

Raw Materials

Not applicable for banking; however, 'Cost of Funds' represents the primary input cost, which stood at 4.88% in Q2FY26, up 13 bps YoY.

Import Sources

Not applicable for banking operations.

Key Suppliers

Not applicable; however, the bank relies on a diversified retail deposit base of INR 4,44,450 Cr as of September 2025 for its lending operations.

Capacity Expansion

Current network includes 4,556 branches and 4,174 ATMs. The bank is expanding its digital footprint through its Supply Chain Finance (SCF) platform and co-lending partnerships which reached an outstanding loan book of INR 14,285.08 Cr by March 2025.

Raw Material Costs

Interest expenses on deposits and borrowings are the primary costs. Cost of deposits rose to 4.88% in Q2FY26. The bank utilizes a high roll-over rate of deposits (above 90%) to manage funding stability.

Manufacturing Efficiency

Not applicable; banking efficiency is measured by the Cost-to-Income ratio, which was 62.72% in Q2FY26, and Yield on Advances, which was 8.36% in Q2FY26 (down 41 bps YoY).

Logistics & Distribution

Distribution is handled through 4,556 physical branches and digital channels. Staff costs, a key distribution expense, represent 39.52% of the Cost-to-Income ratio.

📈 Strategic Growth

Expected Growth Rate

10-16%

Growth Strategy

The bank is shifting its portfolio mix toward a 65:35 RAM-to-Corporate ratio. Growth is driven by co-lending partnerships (INR 14,285.08 Cr outstanding), the launch of a Supply Chain Finance (SCF) platform for vendor/dealer financing, and new MSME schemes like Cent MSE GIFT and Cent MSE SPICE. Strategic focus is on high-yield RAM segments which reached 71.54% of total advances by September 2025.

Products & Services

Home loans (63.32% of retail), MSME loans, Agriculture loans, Corporate Credit (working capital and digital invoice discounting), Mutual Funds (via Bandhan AMC), and Bancassurance.

Brand Portfolio

Central Bank of India, Centbank Home Finance Limited, Centbank Financial Services Limited, Cent MSE GIFT, Cent MSE SPICE.

New Products/Services

Supply Chain Finance (SCF) platform, Cent MSE GIFT (Green Investment), Cent MSE SPICE (Circular Economy), and a Distribution Agreement with Bandhan AMC for Mutual Funds.

Market Expansion

Expansion into underserved segments via co-lending with NBFCs/HFCs. Target sectors for FY26 include labour-intensive industries like Toy Manufacturing, Leather, and Startups.

Market Share & Ranking

Not disclosed in available documents; however, the bank's net advances grew at 16% in FY25, outperforming the industry growth of 12%.

Strategic Alliances

Bandhan AMC (Mutual Fund distribution), PSB Alliance Pvt. Ltd. (Digital SCF), Tata Motors Passenger Vehicles Ltd. (Anchor-based financing), and Indo Zambia Bank Limited (Joint Venture).

🌍 External Factors

Industry Trends

The banking industry is seeing a shift toward digital banking and co-lending. SCB credit growth hit a low of 11.03% in FY25. Public sector banks saw a record cumulative profit of INR 1.78 lakh crore in FY25, a 26% YoY increase.

Competitive Landscape

Competes with other Public Sector Banks and Private Sector Banks. Private banks saw a sharper drop in loan growth (9.5% decline in March 2025) compared to PSBs.

Competitive Moat

Moat is based on sovereign ownership (89.27% GoI stake), a century-old brand legacy, and a robust CASA base that provides a competitive cost of funds compared to the PSB average. These factors ensure systemic support and customer trust.

Macro Economic Sensitivity

Sensitive to MSME sector health and retail overleveraging. Industry-wide non-food credit growth declined from 20.2% to 11.0% in FY25, impacting the bank's growth environment.

Consumer Behavior

Shift toward digital banking and higher-yield term deposits. Term deposits bearing interest above 7% rose to 72.7% of total deposits in March 2025 from 64.2% a year ago.

Geopolitical Risks

Geopolitical uncertainties are cited as potential risks to foreign investment flows and economic sentiment, which could impact the bank's corporate credit book and treasury operations.

⚖️ Regulatory & Governance

Industry Regulations

Complies with RBI's Priority Sector Lending (PSL) norms, achieving 50.17% of ANBC against the 40% requirement. Transition to the Expected Credit Loss (ECL) provisioning framework is a key monitorable.

Environmental Compliance

The bank factors ESG principles into lending decisions. It launched 'Cent MSE GIFT' for green financing and 'Cent MSE SPICE' for the circular economy. ESG disclosures are currently 'evolving'.

Legal Contingencies

The bank monitors 'Large Value Frauds' through a Special Committee. Specific pending court case values in INR are not disclosed in the available documents.

⚠️ Risk Analysis

Key Uncertainties

Asset quality vulnerabilities from the co-lending portfolio and potential slippages from the MSME and retail segments. Treasury income volatility remains a risk to quarterly earnings stability.

Geographic Concentration Risk

High concentration in metropolitan areas for deposits (53.2%). The bank has a pan-India branch network of 4,556 units to mitigate regional economic shocks.

Third Party Dependencies

Dependency on co-lending partners (NBFCs/HFCs) for reaching underserved segments and on Bandhan AMC for mutual fund product offerings.

Technology Obsolescence Risk

The bank is mitigating this through investments in digital tools, a new SCF platform, and 'War Rooms' for SMA monitoring using technology.

Credit & Counterparty Risk

Gross NPA ratio was 3.18% in March 2025. Net NPA ratio improved to 0.48% in H1FY26. Solvency level (Net Stressed Assets/Core Equity) is a key monitorable, with a downgrade risk if it exceeds 30%.