**Central Bank of India Reports 28% Surge in Q4 Net Profit**
The Central Bank of India, a state-owned financial institution, announced a remarkable 28% increase in its net profit for the March quarter of FY25, reaching ₹1,034 crore. This growth is attributed to a significant reduction in bad loans. In the same quarter last year, the bank reported a net profit of ₹807 crore.
During this quarter, the bank’s total income rose to ₹10,433 crore, up from ₹9,699 crore a year earlier. Interest income also saw an increase, climbing to ₹8,619 crore from ₹8,337 crore. However, the Net Interest Income (NII) experienced a decline, falling to ₹3,399 crore from ₹3,541 crore.
In terms of asset quality, the bank’s gross Non-Performing Assets (NPAs) improved to 3.18% of gross advances, down from 4.5% at the end of March 2024. Similarly, Net NPAs decreased to 0.55% of advances, compared to 1.23% at the end of the previous fiscal year. Consequently, total provisions for the quarter decreased to ₹969 crore, down from ₹1,257 crore in the same period last year. The Provision Coverage Ratio stood at a robust 96.54% as of March 31, 2025. Additionally, the bank’s capital adequacy ratio improved to 17.02%, up from 15.08% at the end of FY24.
For the entire financial year 2024-25, the Central Bank of India reported a substantial 78% increase in profit, totaling ₹3,785 crore compared to ₹2,549 crore in the previous year. The bank’s total income for the fiscal year rose to ₹39,521 crore, up from ₹35,434 crore a year earlier. NII increased by 7.7% to ₹13,897 crore from ₹12,896 crore in the previous year, with the Net Interest Margin for the year standing at 3.08%, compared to 2.92% for the year ending March 2024.
The bank’s board has proposed a dividend of 18 paise per equity share, representing 1.87% of the face value of ₹10 each for the fiscal year 2024-25. Furthermore, the board has approved a capital raising plan for 2025-26, aiming to raise ₹5,000 crore through a Follow-on Public Offer (FPO), Rights issue, or other means as necessary.
**FAQ**
**What factors contributed to the Central Bank of India’s profit increase?**
The Central Bank of India’s profit increase was primarily driven by a reduction in bad loans, which improved asset quality, alongside a rise in total income and interest income.
