Central Bank of India Q2 profit surges 21% on robust interest income

Central Bank of India's profitability accelerated in the second quarter as the state-owned lender benefited from rising interest income across its lending portfolio. Net interest income expanded significantly, underpinning the 21 per cent jump in quarterly profit to ₹1,469 crore compared to the same period last year.

Interest earned on advances emerged as a key growth driver, climbing 27.6 per cent year-on-year to ₹7,231 crore. This robust expansion in lending-related income reflected stronger demand for credit as well as improved realisations on the bank's loan book. Overall interest income across the bank's operations grew 18.45 per cent to ₹10,357 crore during the quarter.

The lender's interest expenses, however, also moved higher, rising 13.7 per cent year-on-year to ₹6,211 crore. The increase in deposit costs reflected the competitive environment for retail and institutional funds across the banking sector. Despite the uptick in financing costs, the margin expansion on advances allowed Central Bank of India to deliver stronger bottom-line growth.

The results underscore how state-run lenders have leveraged rising credit demand and better asset quality to improve profitability. Central Bank of India, one of India's older public sector banks, has been working to strengthen its market position through improved operational efficiency and credit growth initiatives.