Central Bank of India Gets A1+ Rating Reaffirmed by CARE, CD Programme Enhanced to ₹20,000 Crore

Mumbai, June 18, 2026: In a major vote of confidence for Central Bank of India, CARE Ratings has reaffirmed the bank's highest short-term credit rating of 'CARE A1+' for its Certificate of Deposit (CD) programme. The rating agency has also enhanced the size of the programme from ₹10,000 crore to ₹20,000 crore, highlighting the lender's improving financial position and strong government backing.

According to the rating rationale released on June 18, 2026, the reaffirmation reflects the bank's stronger capital base, improving internal accruals, and continued support from the Government of India, which remains the majority shareholder with an 81.19% stake.

Strong Government Support and Better Capital Position

CARE Ratings noted that the Government of India has infused a cumulative ₹21,835 crore into the bank between FY16 and FY23. In addition, the bank raised ₹1,500 crore through a Qualified Institutional Placement (QIP) in FY25, helping maintain comfortable capital adequacy levels.

As of March 31, 2026, the bank reported a Capital Adequacy Ratio (CAR) of 17.91%, significantly above the regulatory requirement of 11.5%.

Asset Quality Continues to Improve

Central Bank of India's asset quality has shown steady improvement. The bank's Gross Non-Performing Asset (GNPA) ratio declined to 2.67% in FY26 from 3.18% a year earlier, while Net NPA improved to 0.49%.

CARE Ratings said lower slippages, recoveries, and write-offs have contributed to the healthier balance sheet, and further improvement in asset quality is expected going forward.

Profitability Improves Despite Margin Pressure

The bank posted a net profit of ₹4,369 crore in FY26, up from ₹3,785 crore in FY25. Total income rose to ₹42,341 crore, supported by higher recoveries from written-off accounts and robust loan growth.

Although the bank's Net Interest Margin (NIM) moderated to 2.79% from 3.05%, CARE expects the lender to sustain margins with the support of its strong CASA deposit mix.

Retail and MSME Lending Drive Growth

Gross advances grew nearly 19% year-on-year to ₹3.45 lakh crore, with retail, agriculture, and MSME segments accounting for over 68% of total loans. Home loans remained the largest component within the retail portfolio.

The bank also maintained a strong deposit franchise, with total deposits increasing 13% to ₹4.68 lakh crore and CASA deposits accounting for 47.18% of the total deposit base.

Key Risks Highlighted by CARE

CARE Ratings said a downgrade could occur if:

• Government ownership falls below 51%.

• Gross NPA rises above 5% on a sustained basis.

• Capital buffers fall below 100 basis points above regulatory requirements.

What It Means

The reaffirmation of the A1+ rating, coupled with the expansion of the CD programme to ₹20,000 crore, underscores growing confidence in Central Bank of India's financial strength, improving asset quality, and the continued support of the Government of India. The develop