Central Bank Q1 FY27 Results (NSE: CENTRALBK)
Signal: Earnings grew
The read
Net profit rose 13.3% YoY to ₹1,324 Cr, but the driver was a 24% drop in provisions, not operating improvement; operating profit fell 5.1% on a 44% plunge in non-interest income. Revenue growth was modest at 3.1% despite 12.8% interest income growth, as non-interest income halved. Asset quality continued to improve: GNPA fell 53 bps to 2.60%, credit cost dropped 28 bps to 0.40%. NIM slipped 10 bps to 3.06%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹10,678 Cr | 3.08% | -1.23% |
| EBIT | ₹2,186 Cr | -5.12% | |
| Net profit | ₹1,324 Cr | 13.26% | |
| EPS | ₹1.46 | 13.18% | |
| EBIT margin | 20.47% |
P&L walk
Revenue grew 3.1% YoY, but operating profit fell 5.1% due to a 44% drop in non-interest income; net profit rose 13.3% on lower provisions.
Key positives
- Net profit up 13.3% YoY to ₹1,324 Cr; ROE improved 75 bps to 14.92%.
- Global advances grew 28.6% YoY, with corporate advances surging 46.5%.
- Asset quality improvement: GNPA down 53 bps to 2.60%, credit cost at 0.40% (28 bps lower YoY).
- Capital adequacy strong at 18.28% (CRAR) with CET1 at 16.54%.
Key concerns
- Operating profit fell 5.1% YoY due to a 44.3% collapse in non-interest income (treasury income and recoveries).
- Revenue growth decelerated to 3.1% YoY as non-interest income halved.
- NIM compressed 10 bps to 3.06% despite strong advance growth, indicating margin pressure.
- Cost-to-income inched up 10 bps to 55.40%.
Research and educational content only. Not investment advice.