Central Bank of India (CENTRALBK) Q2 FY27 Results Analysis: Advances Surge 30%, Spread Expands 205 bps
Central Bank of India's Q2 FY27 numbers came in strong, with revenue of Rs. 11,737.21 Cr (+14.91% YoY) and PAT growth of +21.11% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | October 17, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Revenue (Q2) | Rs. 11,737.21 Cr (+14.91% YoY) |
| PAT (Q2) | Rs. 1,468.86 Cr (+21.11% YoY) |
| EBITDA margin | 19.33% (+185 bps YoY) |
| EPS (Q2) | Rs. 1.62 (+20.90% YoY) |
| Market cap | Rs. 27,950.73 Cr |
| CMP | Rs. 30.88 |
Quarter Snapshot
Advances grew 30.43% YoY, more than double management's 14–16% FY27 guidance and above system credit growth of 19.1%, driving NII up 26.27% with a 205 bps YoY spread expansion and PPOP up 27.03%. GNPA improved to 2.39%, below the <2.50% target, and the wholesale segment swung from a Rs.139.14 Cr loss to a Rs.601.27 Cr profit, while cost-to-income at 58.95% breached the <56% guidance and retail segment margin fell to 7.45% from 17.77%. PAT growth of 21.11% YoY was aided by a 13.88% effective tax rate from deferred tax asset reversal, which normalizes in H2.
Key Investment Insights
Key Positives
- Advances grew 30.43% YoY to Rs.3,73,070 Cr, more than double the guided 14–16% FY27 range and above system credit growth of 19.1%
- NII grew 26.27% YoY to Rs.4,145.21 Cr, its fastest pace in recent quarters, with NII spread expanding 205 bps YoY
- PPOP grew 27.03% YoY to Rs.2,268.30 Cr; operating margin of 19.33% was 185 bps above Q2FY26's 17.48%
- GNPA improved to 2.39% (Q2FY26: 3.01%; Q1FY27: 2.60%), below the <2.50% target; NNPA fell to 0.31% from 0.48%
- Wholesale banking segment swung from a Rs.139.14 Cr loss in Q1FY27 to a Rs.601.27 Cr profit at an 18.56% margin
- PAT grew 21.11% YoY to Rs.1,468.86 Cr; H1 PAT of Rs.2,792.56 Cr is 63.9% of FY26 full-year PAT
- PCR at 97.16% within the 96–98% guided band; ROA at 1.03% meets the ≥1% guidance; CAR at 17.68% with CET1 at 15.97% (vs 14.98% YoY)
Risk Factors
- Cost-to-income rose to 58.95%, breaching the <56% FY27 guidance target (Q1: 55.40%) as operating expenses grew 20.0% QoQ
- Retail banking segment profit fell to Rs.380.94 Cr from Rs.772.61 Cr YoY, with margin compressing to 7.45% from 17.77%
- Provisions rose 79.14% YoY to Rs.562.74 Cr, with NPA provisions up 3.4× to Rs.489.91 Cr
- Effective tax rate of 13.88% (vs 25.82% in Q1) reflects deferred tax asset reversal; normalisation will compress PAT growth in H2
- Borrowings rose 216.28% YoY to Rs.38,286.80 Cr and the CD ratio climbed to 73.4% from 64.4% as deposit growth (14.41%) lagged advances growth (30.43%)
- Other income declined 6.04% YoY to Rs.1,380.34 Cr from a high base
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.