Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Central Bank of India (NSE: CENTRALBK) Q3 2026 Earnings Call dated Jan. 16, 2026
Corporate Participants:
Kalyan Kumar — Managing Director and Chief Executive Officer
Mukul N. Dandige — Chief Financial Officer
Analysts:
Raju Barnawal — Analyst
Ashok Ajmera — Analyst
Unidentified Participant
Unidentified Participant
Sushil Choksey — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Central bank of India Q3FY26 earning conference call hosted by Antique Stock Broking Ltd. As a reminder, all participant line will be the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr.
Raju Barnawal from Antique Stock Broking. Thank you. And over to you sir.
Raju Barnawal — Analyst
Thank you. Good afternoon everyone and thank you for joining post visual conference call of Central bank of India. Today from the senior management side we have with us Kalyan Dumas, MD, CEO Sri Muralikrishnagar Executive Director. See my Indra Johari Executive Director Sri Ratan Kumar, executive director and Mr. Mukul chief financial Officer. Now without any further delay I hand over the call to MD sir for his opening remarks post which we’ll have a Q and A session. Thank you and over to you sir.
Kalyan Kumar — Managing Director and Chief Executive Officer
Afternoon. In brief I am going to capture the major highlights of Q3 result and it is quarter on quarter and some places I will compare it with each year on year basis. Then if I say total business has grown by 15.77% and that is 7.74 lakh crore within which total deposit has grown by 13.24% that is 4.50 lakh crore. And CASA has grown by 8.54%, that is 2.11 lakh crore. Gross advances has grown by 19.48% that is 23,531 crore year on year basis. And REM has grown by 17.89% that is 2.23,000 crore. Corporate has grown by 23.18% that is 1, 365 crore.
Total income also has increased by 12.62%. That is rupees 10,968 crore within which interest income has grown by 6.15% that is 9,033 crore. Net profit is all time high. 31.70% increase to 12. 63 crore rupees. Gross. NPA has been improved by 116 basis point and that is 2.70%. Net NPA is 0.45%, that is 14 basis point improvement. ROA is above 1.1 and it is 1.01%. ROE is 14.47% and CD ratio have improved by 375 basis point 272 here I want to say in market guidance in business growth, deposit growth advances, growth REM, gross NPA, net NPA, PCR slippage ratio, credit cost ROA in 11 part we have achieved the whatever market guidance we have given we have achieved only casa, NIM and cost to income.
These two part we actually we could not achieve because NIM guidance was above 3%. We achieved to 2.96% and cost to income guidance was given less than 56% and it is 57.84%. But I am sure we will meet the expectations of the market and investors. And we have initiated several strategic steps to achieve these parameters also. And there is a reduction in Yield loan advances by 86 basis point year on year that is 8.15. And cost of deposits has also decreased by 6 basis point that is 4.75. And the credit cost I would like to highlight it is 0.37 slippage ratio.
In this quarter it was 0.25. This is also one highlight and other operating expenses has reduced by 119 basis points. And it is also one improvement which I want to highlight in front of you all. Capital adequacy ratio is 16.13 within which CET1 is 13.87 and Tire 2 is 2.26. And our leverage ratio is 5.63. Gross NPA in absolute terms is rupees 8726 crore and net NPA is rupees 1414 crore and sleepless during Q3 is rupees 658 crore. It is also one of the best in previous quarter and in nine month slippage is 1865 crore.
And another highlight which I want to make recovery in return of account this quarter it is 1026 crore and in nine months it is rupees 1919 crore. In that way there is marked improvement in recovery side and NPA management side provision coverage ratio another signal of resilience in our balance sheet it is 96.69 that is including TWA account. So our restructured book also total restructured book is 4113 crore standard restructured book and SMA 5 crore and above is 0.32% that is rupees 10,24 crore total SMA 0, SMA 1 and SMA 2 constitute of 0.32% of our standard advances as of as of this quarter.
In that way, in brief I can tell you your bank is very resilient and adequate capital is available. And with the strategy which we have taken by integrating Technological upgradation and digital capabilities. I am sure that in coming days you will see the performance of Central bank of India. Actually as per your expectation, as per market expectation. With this I am open for the questions. Questions please. Thank you.
Questions and Answers:
Operator
Thank you so much sir. Ladies and gentlemen, we’ll begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are request to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Our first question come from the line of Dr. Ashok Ajmera from HCON. Please go ahead.
Ashok Ajmera
Thank you for giving this opportunity. Congratulations to Kalyan Kumari, Rab and of course other ed, the entire management team and the staff of Central bank of India for a very good quarter. Sir, after having come in in this. Bank. You may not be knowing that in earlier three, four quarters I had the concern on the advanced growth, credit growth which was almost muted if you look at the first two quarters. But in this one quarter itself the credit growth is 10.24% which is definitely commendable and leading to the operating profit of 22.
92 crore. So it’s up to you.
Kalyan Kumar
19.48%. Yeah.
Ashok Ajmera
No, that is year on year I’m talking about nine months. This quarter. This quarter and quarter it is 10.24% advances. And generally you know I compare for the current financial year and the credit has gone up to 11.52% in this nine month period. But looking at this quarter of 10.24% growth from 2,93,000 crores to 3,23,000 crore. Shall we take it sir that the credit growth for the whole year, whole of the financial year FY26 will be robust. And beyond the advanced credit target of 15, 16% given earlier.
This is my first this thing. And coupled with that the deposit growth was muted in this quarter and the overall deposit growth also is only for nine months. In 9.18% it means to get even the 13% target deposit you will have to generate the deposit of almost about 16,000 crore in the remaining this one quarter. So these are the two things on which if you can throw a little light on the that so that I can take it further Question, sir.
Kalyan Kumar
Ajmeraji, thank you for your encouraging words. And I want to assure you in credit side also we have. These are not just numbers for this number and growth which you are observing it is a well let down strategies and where activation of our every business units is a part. Mobilizing both liability side and asset side in that direction. First I will capture credit side question Asset side question which we have asked earlier. In previous quarter you must have observed our total loan book. Out of total loan book 72% were belonging to RAM side and 28% was corporate side and growth rightly said by you.
So what we did for RAM segment retail Agriculture and MSME segment for Retail Agri MSME we started outreach program. I joined on the 30th of September and in November first week we started outreach program more than 100 plus places we got very good business leads also. And those leads converted into that actually helped us a lot in achieving these numbers which you are observing now. And it is a continuous process. Again in the month of February we already these are laid out. The dates have been declared and people are working on the ground in this process what happens business from field which is very challenging task for all the public sector banks.
We are able to activate them and their contribution towards building quality loan book is ensured. This is one aspect towards corporate lending side also we started conducting credit approval committee meetings every week and and MC meeting, board committee meeting also every fortnight we are organizing. We are getting good proposal in NBG side and also in sanction side and good amount of sanction. Actually we have done. I will tell you in last nine months Central bank of India head office level delegation committee have sanctioned 1 lakh 17,000 plus crore.
And from that is. That is actually lot of things are still under disbursement. I can assure you that in the remaining weeks also we will take decisions and looking to the undispersed part of already sanctioned proposal. I am sure that the target of 1:13,000 crore plus credit book we are. Going to achieve that and we are confident about it. Regarding your question to ask deposit mobilization and resources side there also Central bank of India is having. Actually I will say that we didn’t go for any CD or also did not give any higher interest rate to mobilize resources.
I am happy to share our 65% branches are having more than 50% CASA ratio and now also 47% is one of the highest CASA number in term deposit side also our growth was more than 18%. The people have trust in this brand of Central bank of India and our presence across the country. Towards northern side, eastern side, northeastern side and central side we have good number of opportunity for casa. We have also taken steps for actually segment wise Product design where lot of bundling of insurance products, life insurance, term insurance, accidental insurance and several products we have given and make it one of the best products available in the market.
And with our marketing people and branch people we have started campaign which is named as agas and we are expecting 20,000 crores through this campaign in CASA style and with the available structure technological support because you know we are having very good mobile apps. Sentis app which provides very good experience and banking experience to our customers. In that way I am sure that resources side also we don’t have any big challenge in mobilizing the required resources to meet our aspiration towards great growth.
Thank you
Ashok Ajmera
Sir. My next question is sir, on the. On the profitability front you definitely perform well on the operating front. But because of little higher provisioning in this quarter our net profit is just 50 crore above the last quarter’s profit of 1213 crore. And what I see is that the provisions have gone up mainly on the one is on the restructured standard restructured book to 346 crore as against 113 crore. And also on the standard budget book also the provision has gone up substantially from 30 crore to 150 crore.
This is maybe one of the reasons. So what is the reason? I mean making the higher provision and whether are we going to have the need for the same in the next quarter Also because ultimately the bottom line is not reflecting what the operating profit is. And coupled with that there is also an observation sir that our treasury has performed well in this quarter generating Treasury Income of 302 crore. And at the same time the recovery from the return of book is also very handsome more than 109 crore.
And so overall other income has increased which has offsetted some of these provisions. But whether we will continue to have the need for providing so high in the restructured book and standard asset also we are building more provision and whether it is because of creating some buffers
Mukul N. Dandige
Or
Ashok Ajmera
What is the reason for that. Yeah, see 375 crores we have provided for ECN.
Raju Barnawal
Yeah, that’s probably. I wanted to know. Yeah, yeah.
Ashok Ajmera
For the first time that DCCO extension provision. So there. I mean we have a provision of around 50 crores. So these are the two major reasons. But eight is as per regulatory guidelines. One is our we have, I mean proactively provided 375 crores for the proposed ECL transition. So these are the two reasons. But I mean provision wise because the credit the slippage ratio has been contained. That is why the credit cost also has been contained. And based on whatever is the impending requirement that we foresee we are doing proactively.
Mukul N. Dandige
One thing on the apply cost. 160 crore is more than the last quarter. Have you considered this the impact of the revised labor code
Ashok Ajmera
There also we. Have proactively provided 150 crores additional.
Mukul N. Dandige
That is labor code. That the higher gratuity
Ashok Ajmera
Burden. No, no
Kalyan Kumar
Relation with labor code. Proactively we have done this provision of 1 additional 150 crore.
Ashok Ajmera
So
Mukul N. Dandige
The
Ashok Ajmera
Impact of
Mukul N. Dandige
The labor code on the. On the new labor code on the. On the gratuity is yet to come.
Ashok Ajmera
We do not have that kind of structure in the bank beyond 90 days. We are not submitting any casual labor and other and direct contactual agencies. We do not engage any casual labors directly. So we do not foresee any sizable or any impact at all.
Mukul N. Dandige
The
Unidentified Participant
Last one in this
Operator
Round is government holding
Ashok Ajmera
Abibi 89.
Operator
Sorry,
Unidentified Participant
Go ahead.
Operator
Yeah.
Kalyan Kumar
What happened? Hello. Okay, we’ll
Operator
Go to the next question. Yes, our next question come from the line of Nishita from Sapphire Capital. Please go ahead.
Unidentified Participant
Hello. Am I audible?
Kalyan Kumar
Yeah, please.
Unidentified Participant
Yeah. So I just had three questions. You mentioned that we did 1100 crore of recovery in Q3 FY26. Like can you give a number of how much recovery we can do in Q4 of FY26?
Kalyan Kumar
Q4. I will tell you. In Q4 expected recovery and upgradation and recovery. In technical write off it is 904 crore. Total recovery and upgradation expected in Q4 is 904 crore.
Unidentified Participant
Okay, got it. And you also mentioned that in CASA M and cost to income we are like we have not achieved our state. So like do you foresee us achieving our stated guidance in Q4 and like in overall FY26 also
Kalyan Kumar
It may take time. Actually I can’t assure by March 26th because there is pressure on margin due to rate cut. And though we are diversifying revenue sources and cost curtailment we have taken several steps. But it made another two years to three years it would take to check it below 56%. Right.
Ashok Ajmera
Or you can add we are at 57.8% right now. And as sir is saying because of the pressure on margin. So Q1. I mean it will have to be a gradual process through which we will be able to come down so maybe 50 to 50 to 100bps every year like that we will be able to bring down the cost to income ratio. By
Kalyan Kumar
Or
Ashok Ajmera
Less than 50. It will take three years minimum three years. It will less than 53
Unidentified Participant
Okay. Understood. Okay. Understood. And this last. It’s just a clarification. You mentioned that our credit book target is of 1 lakh 30 thousand crores.
Kalyan Kumar
1 lakh 13.
Unidentified Participant
When actor didn’t tell him that’s the target, right? Okay. Okay. So what is the overall target book for Overall target credit book.
Ashok Ajmera
340. Total
Kalyan Kumar
Credit target 3 lakh 40 thousand.
Unidentified Participant
3. 3 lakh 55 thousand.
Ashok Ajmera
3 lakh 40 thousand.
Unidentified Participant
Okay. Okay. Thank you so much.
Operator
Thank you. Our next question comes from the line of Ishan Gupta from choice Institutional equities. Please go ahead.
Kalyan Kumar
Yes. Yes. You are audible.
Mukul N. Dandige
Good afternoon sir. Congratulations for the good set of numbers. So my first question would be that going by your sequential growth in business the corporate loan book has witnessed a substantial growth of 20% beyond you. So was this absorbable growth led by any particular end sector or it was broad based.
Kalyan Kumar
It is broad based actually because you see in corporate side year on year growth is 23%. And we have given sanction from head office in this year from different committees. It is 1:17,000 crore. And different committees like MC CSE committee headed by MD ED and CGM committee have approved and from journal level also a regional office level also committees have contributed towards this corporate credit business. It is broad based. It is not limited to any few players or any entities.
Mukul N. Dandige
The reason for asking this question was because the going by the general market many of the sectors are not doing good except auto and some of the consumer discretionary players. So for that any particular sector because the private capex is not growing that much. And at the time the government finances are under stress. Similarly the government capex is also weak. So
Kalyan Kumar
Demand, demand for credit side majorly the sector where we entered this is renewable energy sector LRD and also opportunity towards infrastructure, roadside also and data center also. These are the emerging areas where we participated. And in corporate trade side we actually entered into those areas.
Mukul N. Dandige
My second question would be. When comparing our RAM advantage growth with the industry growth rate it is quite observant that our retail and agriculture segment is outperforming while SME segment is lagging behind. So could you explain the drivers for each of these observations?
Kalyan Kumar
Yeah. Retail. Retail we have grown by 2021%. Looking to the opportunity available in our Indian economy. And agriculture also we have grown by 15% and MSME we have grown by 16%. So you rightly said by you that MSME as we have actually whatever we are having aspiring to grow it didn’t match that. But we have initiated steps that I would like to share with you. We have identified 225 MSME intensive branches and in the active cluster and we have designed a cluster specific product and digital side also lot of digital journeys for financing small value customers also that is also there.
So with this I am sure an outreach program also scheduled in the first week of February we are going to conduct MSME outreach program at 90 plus centers in the country and with all these enablement I am sure that our growth in MSME sector would be better in this quarter. 4.
Mukul N. Dandige
So yeah also we have one of the best CASA princes among the PSU banks. So but a time when the delta between the savings deposit rate and the fresh term deposit rate is reducing. So what I believe is we should. Be able to grow our savings book more strongly. But the CASA growth has reduced this quarter so what could be the reason. For a weaker growth
Kalyan Kumar
CASA we have grown by 8.43% 4.5percent and what I understand CASA ratio also we have improved from previous quarter 47.13% is there previous quarter it was 46.89%. So that there I believe and also I will tell you out of 4567 branches approximately 3000 branches are maintaining CASA above 50% and Northern side, Central side, eastern side, northeastern side CASA ranging from 52 to 55% only southern side and western side our CASA ratio is 38%. So to build upon our these capabilities we have launched a Raj campaign where the product which we have designed for all the different segments of the customers like pensioner, defense personnel, police personnel, housewives, RERA specific current accounts number of products we have launched now and with this campaign we are expecting good mobilization under CASA segment.
This is our strong area and we are building upon our strong area Technology also playing important role. Every brand and marketing officers are having TAB through tab with pleasant onboarding experience we are giving to our customers and through mobile app that is also a super app our sentence mobile app. Through that also we are giving them superior banking experience providing them almost all the banking services on click basis. In this we are sure that we will not only maintain but improve improve our CASA ratio in Q4.
Mukul N. Dandige
And sir my last question would be with repricing of older term deposits is expected to start from the current quarter as the first rate cut happened in March 2025. So what is the range do you foresee at which the cost of deposits should settle around in upcoming 12 months?
Ashok Ajmera
See the rate cut was announced from February 25th and in phases 125bps of rate cuts have been Announced by Reserve Bank. But as you know the transmission in repo based loans will happen instantly whereas the time deposit rates will take some lag effect. So we expect that by June 2026 the transmission should happen. Because now our maturity on an average monthly basis is somewhere around 18,000 19,000 crores of time deposits. So we expect that by June when the rate transmission is complete our cost of deposit should further come down to around 4.65 4.70 kind of a range.
Because there will be another driving factor if we through this CASA campaign our CASA growth also will be there. So that will be an additional lever through which we’ll be able to bring down our cost of deposits.
Mukul N. Dandige
So considering both the drivers it could can it come down below 4.5 means currently it resides around 4.85. So let’s say 4.7 is the rate we are penciling in. With the repricing
Ashok Ajmera
It can be in. The range of 4.5. 4.55.
Mukul N. Dandige
Okay, understood. Thank you. All the best for the upcoming results.
Ashok Ajmera
Thank you. Thank you.
Operator
Thank you. A next question comes from the line of Varun from Share India Securities.
Mukul N. Dandige
And congratulations on your quick set of numbers. So just wanted to understand your overall provision. You said that 375 crores is the provision that you have for EPS. What was the 150 crores proactively that the company has provided for and also for overall view of credit cost. No doubt it is below 1% and below the guided range. But sequencing it has gone up from 0.22% to 0.38%. So do you expect it to come. Back to the 0.3% or will it. Be, you know as this thing itself. You can throw some back on this.
Ashok Ajmera
One is your voice was not clear so I could hear the first part. 375 crores is ECL provision. 150 crores proactively we have provided for the terminal use for the employees that we have done for this quarter. What is the other thing you are. Asking
Mukul N. Dandige
On overall credit cost on a sequential basis it is a little bit elevated from 0.22% to 0.38%. So what will be the reason for this additional policing? And I mean and what level do you expect them to be one person but on sequential generators that’s gone a little bit up.
Ashok Ajmera
So credit cost, our first is our guidance for slippage ratio is less than 0.35% every quarter. Now. Now what happens if I have to keep my net NPA at the same level even though as per IRAC norms, I am required to make a provision of 15% only. But to keep the net NPA at the same level, I’ll have to provide for almost 100% because then only my net NPA would be at the same level or slightly lesser because of the higher income. So depending upon the slippages, the credit cost may vary, but it is within the range of the market guidance that we have given.
Mukul N. Dandige
Okay, thanks. 2026. Just wanted to have a little bit of knowledge on your investment margin. Because 3% was a target for FY26, you already 2.96% and some impact of the overall rate cut would happen in Q4 itself. So do you expect the NIM to go above 3% or would it be, you know, below 3% or somewhere near that?
Kalyan Kumar
We are going to maintain 3% guidance which we have given to the market. And for that to maintain that, you know, rate hit 125 basis point was cut. And as we are having more than 60% loan book linked with repo immediate, this was transferred to the customer. But that deposit repricing rightly said by you comes to with lab and by Q1 next year most of those deposits will be repriced. But even after that that pressure on margin is there. But for maintaining that NIM we have already diversified. As I told you in my earlier answer CASA mobilization we have started very strategically and also REM advances where we are having particularly MSME in agriculture good margin we are having.
So we are focusing on those by actually opening agri intensive and MSME intensive branches in their clusters. Focusing upon high living, agriculture, infra finance also go down construction side and the opportunity available. In this segment where things are actually really emerging. We are entering into those segments where good margins we are expecting because on consistent basis on weekly basis we are conducting credit approval committees meeting also disbursements are also happening to average credit part which play very important role towards actually interest management, income management.
With all these diversification, we are sure that our margins would be maintained and NIM will be successfully maintained at least up to 3%.
Mukul N. Dandige
Okay, sir. So one last thing just wanted to understand because you highlighted that the overall MSME growth has not been, you know, as much as you. But I mean what we are learning is that, you know, during the Q3. Towards the tail end, I mean in. The month of December, the overall one in the MSME has seen improvement. Has that been the place? I mean, it just throws some light on the overall demand coming.
Ashok Ajmera
I understand you want to know that whether the demand has gone up in Q3 under MSME. Right. So basically MSME as a sector demand, MSME is only how. How best we are able to finance. How best we are able to find out. So as Sara pointed out that with the outreach programs that we have started in start of Q3 now in Q4 also will continue. And along with that improved product offerings are there. So with that we definitely expect that the Q4 growth would be better.
Kalyan Kumar
We are. Actually I will supplement what Mukulji has told. We have identified 2.5 MSME intensive branches. And those branches are in the clusters, active clusters of the different activities. And we have also designed specific products for them which is very, very competitive and supportive. Apart from that, advisory services like handholding, providing them training to the entrepreneurs. And also our own people who are posted in those branches. Also we are providing them specialized training that is going on.
Actually in this quarter we’ll get benefit of all these initiatives which we have taken in MSME financing. In that way I can tell you that current quarter Q4 actually will have good performance under MSME.
Mukul N. Dandige
Okay. Okay, sir, thank you for answering my question, sir. Thank you. And I have a meeting. Thank you very much.
Sushil Choksey
Thank you. Thank you. Yeah. Next question please.
Operator
Yes, next question. Come from the line of Ashleesh from Kotak securities. Please go ahead.
Unidentified Participant
Hi team. Good evening. Two questions to begin with. Firstly, your borrowings have gone up quite sharply. Qq. What is the reason for that? And what is the cost of these incremental borrowings?
Ashok Ajmera
See, even though I mean securities are liquid securities in which we have invested. But since they are carrying better coupon. So what we are doing is we are borrowing against those securities at around 5.5.1, 5.51520 types. And those funds we are utilizing towards, I mean funding. And that is why you see our CV ratio has gone up to 72%.
Unidentified Participant
Got it, friend. There was a fairly large recovery from TW accounts in this quarter. Was there any lumpy account here?
Ashok Ajmera
Yes. So the major recovery has happened in some accounts. The Highest being in BOE airlines with 515 crore. Thereafter we have received 90.79 crores in one account called ALM Industries. 80.37 crores in ALM Food Products. 52.32 crores in AL Nafis. Like that we have many accounts. And I can tell you that recovery in accounts above 1 crore is 890.56 crores. And the remaining is in the below 1 crore. 20 crore is below
Kalyan Kumar
Totally 1021 crore.
Unidentified Participant
Understood, sir. Sir, you just A couple more questions. You gave some number that roughly about 1819,000 crore of term deposits get repriced. You said every quarter or every month.
Ashok Ajmera
We have a 2 lakh 33 thousand crore kind of term deposit book.
Unidentified Participant
Understood sir. And lastly can you share guidance on the yield on advances and cost of deposits in the next few quarters.
Kalyan Kumar
Current yield on advantage is 8.15. And hopefully we’ll maintain this 8.15 in Q4 and another what? What was the cost should come out like Cost income will come down. It would come down.
Unidentified Participant
Understood sir. Thank
Operator
You.
Kalyan Kumar
Thank you. Thank
Operator
You. Thank you sir. Our next question comes from the line of social Chokshi from India Security Advisors. Please go ahead.
Sushil Choksey
Congratulations to team Central bank and management for the excellent performance and lots of guidance in the press as well as in the presentation and Q and A. So my first question is the interview and the commentary. Right now you said your growth path is on a very positive track. You were expecting 72% CD ratio at March 26. Whereas you already reached 26 numbers in this quarter you already indicated the loan growth number based on what you’re expecting to you have sanctioned and what is the kind of disbursement likely to happen.
Second thing, can you indicate what kind of ROE nim you already guided? You will achieve 3% ROE ROA and is your balance in RAM which you indicated again in interviews would be much better compared to where we stand today in terms of corporate book is growing and ram would stabilize.
Kalyan Kumar
Roe is 14.47% up by 151 basis point. And certainly it will increase I’m sure in this quarter also. And ROA will maintain above one. As we have given guidance to the market it is going to be above one towards RAM side. It is our priority. And Central bank of India is having strength in this segment. Earlier also you see based upon learnings from what we actually learned during PCA period and after that corporate lending we are very. Actually I will say that’s a very selective only AAA and due to lesser risk appetite the RAM side actually really the way we have identified the potential center branches, active clusters, dedicated products and technology integrating with our business model.
I am sure the guidance which we have given to RAM segment 65:35 ratio plus minus 5% we have achieved this quarter also in next quarter. I am confident that it would be maintained. Anything else sir,
Sushil Choksey
Your commentary is very positive. CD
Kalyan Kumar
Ratio also to answer your question, current quarter we have reached to 72%. Certainly as we aspire to improve our advances and deposit. So Target advances were 3:40,000 crore and deposit 4:60,000 crore. I expect that CD ratio would be the range of 73:73 half. We will reach easily to that level.
Sushil Choksey
Basically speak less and achieve more. That’s the mantra which you are guiding to central bank. That’s what I figured out from your interviews in your commentary right now. I’m happy to hear that sir. Thu bank is a flavor of the season right now in the capital market when times are challenging. Led by the world. You have excellent franchisee where brand image. The 115 years put into the bank’s image. Customer base in Casa is well supportive. You now have insurance arm. You are likely to spend huge amount on technology.
If that number can be spelled out, what we will do differentiated from the market and in our brand image to make our bank bigger and stronger. Including your 10 lakh crore as aspiration of 28 which is very feasible and achievable based on the numbers what you’re spoken for.
Kalyan Kumar
See we are blessed that we are 114 year old old public sector bank and having very rich legacy and rich culture. We are proud of that. And also we are having 34,000 plus employees and average age of employees 38 years. And that makes a very good combination of senior experienced person and the young person. It makes a very good combination and aspirations which you are actually expecting from Central bank of India. Regarding in terms of visibility and brand image, we have taken several steps in that direction.
Digital media also social media handles channels and also several products. The digital product adoption level are increasing. For that purpose also campaign we have started Digital marketing officer One new concept. We have identified and with thorough branding all the nodal officer and branches, regional office, journal office and head office level. We are integrating them towards a structured way so that we can showcase our potential while giving interview. People still outside people understand that Central bank of India is a traditional public sector bank.
But once we discuss with them the features and capability of technology which we have built upon then they understand that is need. I understand there is a need to highlight all these things and market it properly. Very structured and strategic way. We are planning to actually improve visibility of our bank and in that direction going to media, giving interviews, meeting with the investors. These are the part of our strategy. And also we are having lead bank responsibilities at 53 places, 53 districts.
We are also identifying identified them as potential brand ambassador of Central bank of India. We are organizing their two three days training program where we are going to groom them for a better brand ambassador for Central bank of India. In that way we are leveraging all the opportunities and scope available in our organization to showcase our strength to the Indian banking ecosystem. Thank you
Sushil Choksey
Sir. Secondly, you have spoken about core strength of not only management employees and the technology which you are adopting. The consumer experience likely to get better and the bank gets support. Secondly, I make out from your statement in the press articles as well as in your commentary that the private sector capex is on a path of recovery compared to public sector. Can I take your replies as that our lending which is happening today is more toward private sector compared to public sector.
Kalyan Kumar
See, we are having a very good customer base and our own clientele banking with us for fifth generation, fourth generation. Likewise we are meeting and we are not a large player in corporate sector looking to the potential players like larger bank and all the all in that way I don’t find any challenge because our base size is very low. The growth which we aspire looking to our potential available in the Indian market. We are getting ample scope and ample proposals for actually financing and building our own book in those segments.
There is absolutely no challenge. We are finding competing with private sector and all because we are having our own client base and we are getting good proposal in those debts from both channels.
Sushil Choksey
If I conclude my question sir, we have. We are only climbing up on all aspects and we’ve hit the bottom in respect of margins, profits and we look up only quarter on quarter. Am I to assume that way would be a better way to take it?
Kalyan Kumar
Yeah, bottom line will be maintained as I assured you. Because there are because our composition of loan book. You are aware it is more than 60% loan book is refolding based. So we are more impacted. You must have seen in previous quarters there was a reduction of 59 basis points steepest actually impact. But we have initiated several steps to maintain by launching CASA campaign by designing products and also designing the structure. Similarly in REM as I discussed with you and also diversifying different resources cost curtailment.
With all these strategies I can assure market that our profitability and all these things we see marked improvement in coming quarter and also coming year.
Sushil Choksey
I’ll just squeeze in one last question. Central bank futures generally is very visible. Central bank generally insurance arm very visible in media as well as other places. Has it started rewarding where our investment is concerned?
Kalyan Kumar
See, such kind of business actually takes time to achieve breakeven and all. It is just first year and they have given 40 from insurance we have got 42 crore. But what was the contribution of Generally that means it is combined income from insurance 42 crores.
Ashok Ajmera
But
Kalyan Kumar
Lot of hope is there because generally being a global company having expertise in products and also delivery side and good services side and Central bank of India having country wide presence and having good trust of public and customers in our franchisees and we are under obligation to provide all the banking services and requirement of customers under one roof. In that way this association is going to be complementary and coming here to certainly get good benefit out of this association.
Sushil Choksey
Congratulations. Best switches to Central Bank Dean for the year to come.
Kalyan Kumar
Thank you. Thank you.
Operator
Thank you sir. Our next question comes from the line of Tanya Kadi from AM Capital Private Limited. Please go ahead.
Unidentified Participant
Congratulations to the management team on delivering another strong quarter with over 35% y growth in consolidated profit and further improvement is seen in asset quality. So my first question is going with 19.5% credit growth and the capital adequacy ratio is now trading towards 15%. So at what growth rate do we start consuming capital meaningfully and should we expect any equity dilution for raising Tier 1 or Tier 2 capital in FY26. And 27
Kalyan Kumar
To meet our target desired target in Q4? This capital is enough sufficient to meet this growth target. Whatever we are aspiring 3,40,000 crore is the credit advances target. Usually we will achieve. There is no need of going to market for either for Tire One Capital.
Unidentified Participant
Okay, so Roe is now around 1% and you are given a target of 1%. Is this the peak zone for a PSU bank like yours or what are the key levers to sustain or improve ROA above 1% once recovery and credit. Cost change is paid
Kalyan Kumar
ROA we have. Given guidance it would be above 1% and certainly the profitability side which we are focusing upon this time also you have seen 1263 crore was the profit and net profit of the full year is going to be 4000 plus crore. That I am sure that with this ROA we will maintain one or above one. With the guidance we have given. As I have told answering different questions that CASA is our priority, RAM is our priority and technology adoption is our priority. Cost reduction is priority. With all these initiatives and also future Sorry, generally insurance you have seen from all these segments we have scope to get a good return.
Whatever we have invested in all these initiatives and all I am sure we will be able to maintain ROA 1 or above 1.
Unidentified Participant
There is one general question. There has been discussion in the market about potentially raising the foreign investment cap in PFU bank from current 20%. The government has clarified it is not pursuing any increase in the stock so we have seen around more than $6.5 billion inflow in private banks by the foreign institutions. So my next question is how central bank is going to attract long term investment from the foreign capital or institutions under the current ownership. Are we seeing any opening of a further increase in this cap in 20% in KSO banks?
Kalyan Kumar
As I told you, in current quarter our capital is enough for growth. And all these things depends upon several approvals and several things I am I will not like to comment on on this aspect.
Unidentified Participant
Okay, thank you sir. Thank you.
Operator
Thank you. Our next question comes from the line of Ashlee Sonji from Kotak Securities. Please go ahead.
Unidentified Participant
Hi sir. Thank you for the follow up. Two questions. Sir, can you share what is the blended yield on your corporate loan book? That is one. And secondly you indicated earlier in the call that you expect to maintain your yield on advances around the current level. What. What gives you the hope that you can maintain it? Because the rep rate has been cut in December so the EBLR book will get repriced as in the impact will be felt in the next quarter. What gives you the hope that you can maintain it?
Ashok Ajmera
This blended yield on corporate loan. I’ll give you offline as far as the yield on advances and our belief that it will be able to maintain two things. One is because the CD ratio has improved. So definitely that should help us. Because we were at 66% when rate cut was announced and from 66% we have now graduated to 72%. Going forward we expect to be around 73 74%. So that in itself would help us ensure that our yield on advances remains remains more or less in this same line.
Unidentified Participant
Okay sir. Thank you.
Operator
Thank you. Our next question come from the line of Devanshi Gupta from Eureka Stock and Share Broking Service Ltd. Please go ahead.
Unidentified Participant
Good evening sir. Am I audible?
Kalyan Kumar
Yes, you are audible.
Unidentified Participant
My question is like I have noticed that gross NP ratio in agree and MSME sector remains elevated. So could you elaborate what is causing the stress within this sector?
Kalyan Kumar
See Agri and MSME both NPA is approximately 5% and still if I compare with other players it is actually not that much elevated. Side looking to the smaller ticket size and number of impact by several factors playing in the catchment area. This is the stress but no any I will say the significant impact to our poor asset quality or anything I can tell you in this segment in agriculture KCC is the major contributor to our slippage and in MSME segment government sponsored scheme like Mudra and also some other ticket size like general MSME scheme we found some increased seepages to we have corrected it through policy modification and all in that way we are conscious of this fact.
And when we do retail business certainly there are more chances of slippages particularly in this unorganized sector. If I say agriculture MSME there such kind of slippages happen. But Central bank of India has initiated integrated call center fit on street. Things are there with technology. Propensity recovery models are in place. And with all these bot is there through which call centers are integrated. With all these integrated approach we are maintaining good asset quality. And also one thing I would like to mention here.
What we have implemented now improvement in great underwriting quality. We have implemented one technological solution. Any proposal of retail agriculture MSME will first filter through this technology go no go app and then only this will go to the loan origination system for processing that initial level selection level itself. We are screening out any potential account which can be become bad. What I can assure you that with all these technological intervention at entry level, credit underwriting level and also monitoring level end to end, we have initiated several steps to keep our assets healthy.
And we can handle large number of assets at big scale also with all these technological capabilities enabled with human also in the loop in that way there is no such challenge to our asset quality in Agriculture and MSME in coming quarters.
Unidentified Participant
One follow up question on CD ratio like it has improved to around 72%. And given that there is tight systematic liquidity condition and there are pressure on raising deposits like how much additional headroom does management see to increase the CD ratio without raising the marginal cost of funds. And how is the bank like balancing growth with liability side sustainability.
Kalyan Kumar
See the target which we have fixed for this quarter March Q4 quarter our CD ratio would be approximately 73 to 74%. And we don’t find any major challenge to our resources side because you know our CD ratio is still 72 still scope is there and liquidity coverage ratio if you can say it is 203 also there also sufficient leverage we are having. And the initiatives which we have taken towards CASA mobilization campaign AGAJ which I already talked about with structured approach towards product process and technology and grooming people for taking it forward.
So resources is not going to be a challenge. And credit side Already I have answered your question that good proposals we are getting. So our CD ratio will certainly improve in Q4 and approximately it would be 73 to 74.
Unidentified Participant
Okay, last question. Like as you mentioned that we have made like 375 crore provisioning ECL provisioning in this quarter. Could you share like what is the expected provision which we could see in the next few quarters
Kalyan Kumar
The ECL estimate. You know we are having one of the Highest provision coverage ratio 96.89. You are seeing. So that in that way in the asset quality is good credit underwriting is good provision already done. You see net net only 11414 crore. With that base we are prepared to enter into the ECL and already provision till now we have done 1525 crore which includes 375 crore which we did in this quarter. And total estimation is rupees 4200 crore. So more 2675 crore more approximately we have to make a provision for achieving this target by 1st April 2027.
I am sure with the profitability we are going to make very easily we will migrate to ecl. We will not have much challenge in achieving this target.
Unidentified Participant
Thank you sir and congratulations on the good set of numbers.
Kalyan Kumar
Thank you. Thank you.
Operator
Thank you. As there are no further questions from the participant I would like to hand the conference over to the management for the closing comments. Thank you. And over to you sir.
Kalyan Kumar
Thank you and really good interaction. And again as concluding remark I want to assure market the guidance which we have given to the market in this quarter we will achieve that. And the kind of initiatives towards not only towards business numbers but efficiency part parameters are also our priority. In that side customer service excellence is the mool mantra in that direction. Providing handholding training to our frontline officers is also one priority. In technology side also several things are there.
We are working towards improving adoption of these technological capabilities which our bank has created. With that we are having 34,000 plus Centralite and we are handholding them. And you know credit deposit ratio is big challenge for us. 1000 credit officers are being prepared so that we have actually they are being groomed and trained. Similarly 90 days focused trade training program we are doing and we are preparing our people. As I told LDMs and all also different set of officers. We are providing them handholding them good training so that they can take this organization forward in all the terms in technology process simplification.
All these things we are doing with this. I can assure you the guidance which we have given to the market. So we are sure and confident that we will be achieved that. Thanks for your support and also I am very happy that we got gave us opportunity to place our strategy and numbers in front of you. Thank you. All the best.
Operator
Thank you so much sir. On behalf of NPIC stock broking limited. That concludes this conference. Thank you for joining us. And you may now disconnect your line.