Central Bank of India Q4FY26 Net Profit Declines 30% to ₹724 Crore Amidst One-Time Tax Impact
Central Bank of India reported Q4FY26 Net Profit of ₹724 crore, down 30% YoY due to a ₹632 crore one-time tax impact. For FY26, Net Profit grew 15.43% to ₹4369 crore. Total Business grew 15.60% to ₹812439 crore. Gross NPA improved to 2.67%. A 6% interim dividend is proposed.
The one-time tax impact significantly affected quarterly profit, which could be a short-term concern for investors. However, strong full-year performance and improved asset quality mitigate the overall impact.
While the Net Profit for the quarter decreased due to a one-time tax impact, the overall operational performance, full-year profit growth, improvement in asset quality, and business growth indicate a neutral sentiment.
Central Bank of India has announced its financial results for the quarter and financial year ended March 31, 2026. The bank reported a Net Profit of ₹724 crore for Q4FY26, a decrease of 30% on a YoY basis compared to ₹1034 crore in Q4FY25. This decline is primarily attributed to a one-time impact of ₹632 crore due to the recognition of Deferred Tax Asset at 25.168% as against 34.944%, as per the Finance Act 2026. Consequently, ROA for the quarter decreased to 0.56% from 0.91%, ROE fell to 8.43% from 13.40%, and EPS dropped to ₹0.80 from ₹1.19 compared to the previous fiscal's fourth quarter.
However, the bank demonstrated strong operational performance. Operating Profit for Q4FY26 showed a growth of 4.64% YoY to ₹2096 crore. Net Interest Income (NII) grew by 17.74% YoY to ₹4002 crore. Total Income improved by 4.63% to ₹10811 crore. The Cost to Income ratio improved to 59.31% from 60.82% in the previous year.
For the full financial year ended March 31, 2026, the bank's Net Profit increased by 15.43% to ₹4369 crore from ₹3785 crore in FY25. Operating Profit grew by 4.37% to ₹8479 crore. ROA improved to 0.89% from 0.86%, and ROE improved to 13.00% from 12.48%.
Business highlights for the year include a 15.60% growth in Total Business to ₹812439 crore. Total Deposits increased by 13.38% to ₹467923 crore, with CASA Deposits forming 47.30% of total deposits. Gross Advances increased by 18.76% to ₹344516 crore. Asset quality saw significant improvement, with Gross NPA reducing to 2.67% (down 51 bps) and Net NPA to 0.49% (down 6 bps). The Provision Coverage Ratio stood strong at 95.97%.
The bank proposed an interim dividend of 6% (₹0.60 per equity share) for Q4FY25-26, in addition to the 2% interim dividend paid quarterly for the previous three quarters. Capital Adequacy under BASEL III CRAR improved to 17.91% from 17.02% in the previous year.
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