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) Q4 2026 Earnings Call dated Apr. 30, 2026
Corporate Participants:
Kalyan Kumar — Managing Director and Chief Executive Officier
Mukul N. Dandige — Chief Financial Officer
Analysts:
Siddharth Rajpurohi — Analyst
Ashok Ajmera — Analyst
Sushil Choksey — Analyst
Ashlesh Sonje — Analyst
Unidentified Participant
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Central bank of India Q4SY26 conference call hosted by Systematic Shares and Stock Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on the date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participant lines will be in the lesson 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. Siddharth Rajpurohi from Systematics. Thank you. And over to you sir.
Siddharth Rajpurohi — Analyst
Thank you, Iqra. Good evening everyone and welcome to our to Central bank of India’s Q4FY26 conference call. From the management today we have Sri Kalyan Kumar, M.D. And CEO Sri Mahendra Dhohare ed. Sri E. Ratan Kumar ed. And Sri Mukul Dandige, CFO. We are very grateful to the management for giving us this opportunity to host their post result conference call. I now hand over the call to the management for their opening remarks post which we will open the floor for Q and A session. Thank you. Over to you sir.
Kalyan Kumar — Managing Director and Chief Executive Officier
Thanks a lot. Good evening all the investors connected here and my colleagues present in this boardroom. First of all, Please accept my 30th congratulations for the financial result of Central bank of India as of financial year 26. In my initial remark I want to mention that total business of Central bank of India grew by 15.60% and reached to 812,439 crore. And deposit also increased by 13.38%
Mukul N. Dandige — Chief Financial Officer
To
Kalyan Kumar — Managing Director and Chief Executive Officier
4.67,923 crore CASA. Deposit also stands at 47.30% of total deposit. Major highlight, our saving bank has grown in double digit 10.05% and crossed 2 lakh crore first time. And gross advances increased by 18.76% to 3.44,516 crore CD ratio has improved to 73.80. Gross NPA it stood at 2.67% with an improvement of 51 basis point year on year. Net NPA stood at 0.49%. It is an improvement of 6 basis points. Provisional coverage ratio is also at 95.97%. Operating profit for this financial year increased by 4.37% to rupees 8479 crores.
Net profit for the financial year has increased by 15% to rupees 8479crores and net interest margin stood at 3.07% which is a marginal decline. And here I want to mention as per the new finance bill, bank has taken a one time impact of rupees 632 crore due to recognition of deferred tax asset at the rate of 25% as against 35%. And that’s why major ratio got impacted due to above cited action. It is again at the cost of reputation. It is one time impact. Net profit has been impacted and ROA also got down to 0.56 from 0.91 for the quarter four as of previous year and return on equity also down to 8.43% from 13.40% for Q4 of previous financial year EPS down to 0.80% from 1.19% for Q4 of previous financial year.
Similarly for year on year basis also ROA though year on year there is improvement despite taking hit of 6:1 time impact of 6.32crore. RoA improved to 0.89% from 0.86%. Return on Equity also improved to 13% from 12.48% Cost of Income Ratio it is at 58.61% slippage ratio. We were able to contain it at 1.16%. There is improvement of 29 basis point and CRR improved to 17.91% out of which Tire 1 is 15.61%. If we talk about quarter to quarter, net profit decreased to 724 crore as against year on year basis 1034 crore and this is also due to one time impact of 632 crore.
As I discussed earlier, operating profit also has shown a growth of 17.74% on year on year basis to rupees 2096 crore and net interest income grew by 17.74% on year on Year basis to 4002 crore in Q4 financial year 26. Total income for Q4 financial year 26 improved by 4.63% from 10,333 crore for Q4 financial year 25 to 10,811 crore for Q4 financial year 26. For profitability for year ended March 26, net profit increased by 15.43% to 4369 crore on year on year basis operating profit has shown a growth of 4.37% to 8,479 crore on year on year basis, net interest income grew by 197% to 14,171 crore on year.
On year basis as against 13,897 crore for previous year. ROA improved to 0.89% from 0.86%. ROE improved to 13%. And regarding asset quality also, if I can tell you before that I would like to highlight business per employee. It has improved to rupees 23.89 crore and against 21.31 crore there is improvement here also. And our Ram main growth engine retail, agriculture and SME grew by 21%. The individual sector wise growth, retail has grown by 25.67%. And Central bank of India has cost 1 lakh crore mark also 1 lakh 3533 crore.
And agriculture has grown by 17.60%. That is 61,687 so. And MSME has grown by 17.06%. That is 69,351 crore. Similarly there is improvement of 51 basis point in gross NPA. And we have closed at 2.67% as of 31st March 26th. Net NPA that is improvement of 6 basis points from previous year to 0.49%. PCR also stood at approximately 96%. CRR as I discussed it is 17.91. And what to mention Tire 1 is 15.61%. And in that way we have very good capital capital base. And we have declared dividend also. Final dividend is at the rate of 12% rupees 120 per equity share.
It is proposed for the year 2526. And it includes all the interim dividend declared and paid at the rate 2% quarterly for previous three quarters. These were brief about our actually financial results with all the support of our stakeholders and team. So that was the in brief. I highlighted our financial Result as of 31st March 26th. Now over to you,
Operator
Sir. Can we open the floor for question and answer?
Kalyan Kumar — Managing Director and Chief Executive Officier
Yes, please.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question May Press Star N1 on the Touchstone telephone. If you wish to remove yourself from the question queue, you May Press Star N2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Ashok Ajmera from Achkan Global. Please go ahead.
Ashok Ajmera
Yeah. Thank you for giving this opportunity, sir. My compliments to you sir and the entire team of central bank for a very good business growth. I mean especially the credit growth is phenomenal. Even in this quarter itself it is 6.49%. Having said that sir, we have noted some decline in the profitability. Our even operating profit also has gone down and resulting into the net profit also going down. Of course that that one time tax implication is there in that. But in the operating profit also we are down.
Similarly in case of the asset also asset quality also I think maybe it is our this quarterly. If you look at it the both the gross NP and net NPA both in absolute number they have gone up and in fact this net NP has gone up even in percentage also gone up. So there is some concern on that even though the SMA quality is maintained. So sir, my first question or rather I would like to have your comments on. Are you seeing any, any. Any stress in the system even for the current because of the geopolitical situations or whatever happening on in the group because of that are even some of the old accounts are also getting slipped because of the slippage is also higher in this quarter.
So it’s a kind of a mixed quarter. Sir.
Kalyan Kumar
Yeah. Thank you Ajmeraji for your question. First of all regarding reduction in opera you told about operating profit it has grown by 4.37%. But if we compare on quarter on quarter basis. Yes. Actually it was mainly due to two reasons. One was actually regarding aff mark to market and that actually if you see treasury income previous quarter it was more than 300 crore and this quarter it is 9 crore. And also recovery in return of account. You see recovery in return of account. Previous quarter it was more than 1000 crore 1162 crore.
But this quarter it is only 352 odd crore. So that were the two main reasons behind actually reduction what you are observing in operating profit side. But if you see our net interest income has increased by 1.7% as year on year basis it is 14,171 crore. And net profit rightly set by you because we have taken one time hit of 632 crore towards DTA. That is the main reason why our net profit has declined. Regarding asset quality actually I would like to tell you rather we have improved. You see our total slippage ratio of Total year is 1.16.
Previous year it was 1.45. There is overall improvement in asset quality management because we have corrected our processes. And also more improvement in technology side towards getting good alerts and fit on the street also integrated with those things. That’s why in the asset quality side and monitoring side because we deal with retail business and retail business requires constant monitoring and frequent follow up. So through technology we are taking services of BOT also and fit on street persons are there, integrated call center is there and also we are working towards great underwriting, improvement in trade underwriting, quality and credit monitoring side also and reviewing the process of our processing center branches.
With all these things we are able to maintain our slippage ratio as 1.16 and in next year our aim is we have given guidance that we are going to keep it less than 1%. And regarding your another question regarding impact of Middle east crisis till now we have not received any request of customers for any overdue PCs or any post shipment facility and our risk management department is very active to us actually conducting stress testing and portfolio analysis. So in that way there is no stress signal at least till now we are witnessing in towards our asset quality.
Hope I have answered your question.
Ashok Ajmera
Yes sir, yes, yes you answered it very well and those two factors which were explained. Yes of course because today you know we get very less time. In fact earlier the call was at 6 o’ clock and then 7 o’ clock and we just bought maybe just 1520 minutes only to go through this. But anyway you have explained it. Thank you very much for that sir. My second question is on the ECL now since the ECL guidelines I have come out the final guidelines from rbi. So how prepared we are, is there any some prompt calculation which has been done because we have been preparing it for now for quite some time.
So how do you see the impact of the ECL and then how fast you see that the impact can be absorbed without affecting the profitability much.
Kalyan Kumar
See we are actually for since last at least one or two years we are sincerely working towards developing models improving quality of data and also our strategy of financing also and containment of slippages which I told these things are going to really support us in migrating to the ECL side. And as regards our impacting on profitability side I don’t find looking to the our growth and net profit and profitability I don’t find any challenge in migrating to the ECL framework as of 1st April 27th. But as regards numbers if you will ask me though we have till previous quarter 1575 crore additional provision we have made for this purpose but the actual simulation depending upon the final guideline still we are working on this site.
That’s why at present I will not be able to tell you the number actually which will be required for that purpose But I can tell you in terms of technological capabilities, simulation and strategy towards actually all these things which are going to impact ECL Central bank of India is fully prepared for migrate migrating to the ACL on for as of first April 27th.
Ashok Ajmera
No, I appreciate that because it is just a these guideline final guidelines have just come out. Sorry all in both your my questions in answer technology 2, 3 times 4 times. So can we know little more in detail in technology front what is happening? Can we have some some quite some if not very detailed some short report on the technology development and what kind of spending we have done what kind of budgeting we are planning and which are the areas which are yet to be covered by the technology by Central bank of India.
Kalyan Kumar
Yes, I would like to provide you offline because currently I am not prepared with the technology and all these things.
Ashok Ajmera
Okay, so last one sir is on the treasury treasury friend of course there was a pressure this year but now with the things little bit changing where do you see I mean or what do you see our treasury you know contributing start again Contributing to the to the profits in the coming in the FY27 sir
Kalyan Kumar
You know we started year by yield of 6.58 then it got down to 6.14 and in March we have closed by 7.03. So in that way it has impacted a lot our profitability. This quarter at least only 9 crore from 3G we got. But looking to the improved condition and situation now by optimal deployment of our this investment portfolio and also IPO market also previous year also we have got a good amount of profitability exchange profit. I am quite hopeful that this year also looking to the market condition we will be able to optimize the return in treasury side of the
Ashok Ajmera
Good to know that if the moderator permits me one more last question on the credit front you’re done very well. Now going forward what I mean what are our like sanctioned pipeline? What is are we prepared up to how much amount are we prepared through our you know crar and going forward what are our plans or targets on the credit front sir
Kalyan Kumar
Our crair is 17.91% as you have seen and CET was 15.61%.
Mukul N. Dandige
So
Kalyan Kumar
Our capital is not a constraint for meeting our growth aspiration in credit side we have given guidance of 14 to 16% in credit side growth and with the current capital strength we will be able to meet this aspiration which bank is visualizing and regarding undisbursed sanctions you see our 68% book is RAM site, retail, agriculture and MSME. Since November we have started outreach program. More than 100 places we organize MSME retail and agriculture outreach program. And good number of prospective leads.
Potential business leads. We actually mobilize. And with our LLMs and our field team. It is a complete SOP based outreach program where our people senior team from head office also went there goes there and mobilizes the proposals and all. That is one area where good traction we have. You know our retail growth is more than 20 25%. And agriculture has grown by 17.60%. MSME has grown by 17.06%. And similarly in corporate side also we have reached. We have closed the book at 1.9950crore. That is also growth of 14.60% in that way.
Actually we have identified potential branches. In MSME there are 225 branches. Agriculture there are more than 300 branches. And for corporate also more corporate finance branch we are opening more MCVs. We are opening where trained people like more than 900 officers we are going to get in the month of October. Whom we are going to deploy them at different credit potential branches. We are also setting up sales and marketing team 350% through IBPS. We are going to get them very soon in next one or two months.
So these actually enabler will augment our capability towards achieving the credit targets and all.
Ashok Ajmera
Okay sir. Thank you very much. Kalyan Kumar Sahib with the entire management of the central bank. All the best to you. And I have time permits. I might come back. Thank you. Thank you very much sir. And for that digital I’ll take the numbers offline from you. Thank you sir.
Kalyan Kumar
Okay. Thank you.
Operator
Thank you. The next question is from the lineup. Sushil C. Choksi from Indus Equity Advisors. Please go ahead.
Sushil Choksey
So congratulations to the team for excellent and stable result and whatever advice and guidance. So I want to break up if I miss few things. So I’m looking forward to the next year. That is the current financial FY27. Can you guide us? What is your thought process? On deposit advance, min, casa, RAM and CD ratio. Recovery from technical written accounts, digital spend, HR processes, our insurance subsidy. What kind of recovery are we seeing from technically written off assets?
Kalyan Kumar
Your question is bouquet of questions. I will answer one by one. Mr. Choksee, thanks for the. Actually really. You see regarding first I will answer your regarding deposit mobilization this time also. You see in CASA we have grown by 9.75% and percentage wise also 47.30 is our CASA ratio. And to achieve this actually our team has worked hard and they designed the products suited to the different segments of the customer. This was one part which actually really acted well. We tapped the potential of our lead district responsibility.
52 lead district managers. We roped them in and aligned them with these products and all these things so that they can support us in mobilizing Kata deposit. And another important part was our government business sell also few places we have opened where we got good traction in those areas. Post MOU with several state governments, railways and also police forces, paramilitary forces where we have were able to open good number of salary accounts and good balances are being maintained with them. Because our technological things are also integrated in this model.
Most of the accounts are being opened through TAB and which is very much convenient for the customers. If I can tell you regarding term deposit our growth was more than 14.60. 1414, 15%. There also our growth is very good Resources is not a challenge for Central bank of India CD ratio in December. In September it was 66. Today in March we have closed at 73.90. Approximately 74% there is improvement. And in coming years actually the expertise which I answered earlier the question of Mr. Azmera. Hopefully you must be hearing also there I told that for credit actually Central bank is now geared up through outreach program training of thousand trade officers.
We are providing them other trainings flagship training program trade program for forex program. With this centralized Forex shell also have been established. With this actually we are really improving or diversifying our different resource portfolio which can support in not only in credit growth but also improvement in income side also. Regarding asset quality, you see our slippage ratio we have maintained it at 1.16%. There is improvement from 1.45% as of previous year. And gross NPA and net NPA Also you see 2.67% is in percentage term 9,185 crore in absolute terms.
And for net NPA it is 1,666 crore. And in percentage terms it is 0.49%. There also we are very much comfortable and well aligned with the guidance which we have given to the market. Apart from this actually CASA Rem containment of slippages NPA you asked about actually the profitability side also we are fully geared up with all these interventions. As we migrated to the new tax regime there would be benefit of 10%. We have simulated that more than 600 crore is going to be the additional income due to migration of this.
This aspect and Anything else I left?
Sushil Choksey
Sir, thank you for answering the question. But my thinking is that central bank is geared up for lot of betterment in the coming year and the years to come under the tenorship and the leadership along with your team. So if I get some kind of advice. Will we be doing what the industry is estimating 12 to 14% or we’ll be better off in deposit advance nim CASA in the current year or years to come. And that is what is what I’m looking for. Because thing is that I see that strength is building up towards betterment.
So if that is the case I would like to hear if you can specifically address on those parts.
Kalyan Kumar
Yes, actually we are working on bringing improvement in the processes. Investing in people. Yes, you told about HR also. Yeah, investing in people, number of training programs. We are providing the first time regional aid program, leadership development program. All these things are also on the card. So that our capabilities are built in technology side also lot of investments we are making. So that’s why we are sure that government guidance which we have given for business growth of 14 to 15% for current year and deposit growth by 10 to 12% and advances growth by 14 to 16%.
We are going to achieve all these guidance which we have given to the with the confidence I am talking because the kind of enablement and system improvement technological integration with business models we have made. We are sure that easily Central bank of India India will be able to achieve all these parameters.
Sushil Choksey
So what do you be able? What would be the balance between RAM and corporate in the current year? You are estimated
Kalyan Kumar
See we have given the guidance of 65:35 plus minus 5% and we are maintaining this this year also is this year 6832 is the ratio. We are going to maintain this guidance 65:35 plus minus 5% because incorporate side we are actually really balancing with the risk and return and only good rated customer only we are selecting because looking to our experience of PCA days in that way we are very selective in corporate side. But you can see still there is growth in corporate side also one 9960 crore that amounts to 14.50% growth.
Sir, what kind of.
Sushil Choksey
What kind of sanction pipeline and undisbursed credit limits are visible to you today? What is not available today?
Kalyan Kumar
Actually there might be that data. I am not ready with that now. Actually I will. I will be able to provide you offline.
Sushil Choksey
So what is the estimate of recovery forecast for current year from written of assets
Kalyan Kumar
Recovery. Actually see you. We are having 32,000 plus crore in technical written off account. And this year also if you can see 2,270 crore we have recovered in return of account and previous quarter was more than 1100 crore. Similarly 2200 to 2500 crore. Easily we can recover from return of account this year also. And coming 23 years is not going to be a challenge for us.
Sushil Choksey
Rajmera missed a question which he’s been repeated in last 8 9/4 about the lumpy account of the airline. Where are we today
Kalyan Kumar
At lumpy account? Actually process is going on. Previous quarter we received 515 crore as is guarantee and but recovery process is going on. We are going for auction and all whatever processes are available we are going to utilize those process.
Sushil Choksey
Say you are strengthening lot of HR process and digital and fleet on street and lot of government accounts. Which means you are going to do a lot of digital spends. Have we made some kind of a budget for current year for digital spend?
Kalyan Kumar
Yes, yes there is budget for actually for capital budget it is 1442 crore and revenue is 1276 crore for 2627 for current year.
Sushil Choksey
Second thing I noticed that you have tied up with lot of mutual funds for distribution now. And with CASA at 47 to 50% range over a period of number of years. I see a lot of income likely to generate from CASA or three in one account and distribution capability which you’re building. Are we sensing early benefits of it or it’s yet to fructify?
Kalyan Kumar
Two, three things actually we are going to start wealth management division. Rightly said by you and that we are going to establish and customer relationship concept and also credit card part and also sales and marketing team. These initiatives we are going to implement in Central bank of India which will certainly help us in actually garnering more income fee based income advisory income. Those opportunities will be opened for Central bank of India.
Sushil Choksey
Sir, any highlights on the insurance JV from what where are we and how it’s shaping up for income side
Kalyan Kumar
See these are untapped potential for Central bank of India. Both life and life. We are having relationship with generally insurance company and this year also 161 crore total. 161 crore we got but it is flat if you compare with the previous year. The huge opportunity is there. So for that purpose our team is working that how to leverage upon these tie up and how we can get more and more revenue and income from these tie ups.
Sushil Choksey
You answered that. So far there are no indicative signals led by the global mishap which has led by war. But Any indicators on retail or MSME in month of April about collection any early signals or everything. Seems in order to
Kalyan Kumar
Till now actually I am regularly proactively interacting with my credit monitoring team. And daily morning in charge of the credit monitoring team updates me. But till now such kind of slippage. I can give you example of the 20th of April it was 250 crore. Slippage was 250 crore. Because that was the date when that demand is fired. So only 250 crore. And it is March also and February also. Approximately this is the number of slippages. So that’s why there is no abnormality or any incipient signal due to the Middle east crisis we are facing.
Sushil Choksey
Thank you for answering all my questions. Good luck for the year and best wishes to entire team of Central bank.
Kalyan Kumar
Thank you Mr. Choksi. Thank you.
Operator
Thank you. The next question is from the line of Ashleesh Shojne from Kotech Securities. Please go ahead.
Ashlesh Sonje
Hi sir. Good evening sir. First question is on your lippages I see that your flesh fresh lipid have increased substantially. QQ can you just explain the reason for that?
Kalyan Kumar
See Q4 actually if you compare year on year then Q4 every time there is actually slippages are there but agriculture you can ask.
Mukul N. Dandige
See many of these slippages particularly in MSMEs may be attributed to kind of technical. Okay. The auditors are saying that the credit submissions are not commensurated with the with the business projection. Whereas the unit units are working so. So because most of these branches go under audit in the quarter of this. So that that is one thing. And secondly some agriculture accounts have been identified so slippages with that. That is the only reason why our slippages are 13 not 1 crore as against roughly around 800 crores on an average every quarter
Ashlesh Sonje
And
Mukul N. Dandige
Majorly in
Kalyan Kumar
Government sponsored schemes Mudra, PMEGP etc up to 10 lakh it was more slippages were there.
Ashlesh Sonje
Understood sir. The second one is on. On the ECL transition. I understand that you would want to wait before sharing a an impact the one time impact. But can you at least comment on what the recurring credit cost can increase by when you transition to the ECL chain.
Mukul N. Dandige
See our back of the envelope kind of a calculation for ECL impact was always around 4000 crore which is very conservative. Out of that 1525 crores we have already built up. Now that Reserve bank of India has permitted that we can can take the impact through reserves. So bank being sufficiently capitalized at 17.91% I can easily take the impact on day one. I can easily take the entire impact on day one without any problem. Secondly, what you are saying is an ongoing basis. So. Ongoing basis our estimates are that roughly around 600 crores of provisions would be required for the entire financial year on an ongoing basis.
But that one impact that my transition to new tax regime itself is likely to give me a positive impact of around 600 to 800 crores. So these two impacts can easily be balanced.
Ashlesh Sonje
So the benefit of 6 to 800 crores would be on account of what reason?
Mukul N. Dandige
Because we are. We are going to transition from the old tax regime of 35% to new tax regime of 25%.
Kalyan Kumar
This 10% benefit would be there. So
Mukul N. Dandige
That 10% benefit comes to around 700750 crores.
Ashlesh Sonje
And the 600 crore ongoing credit cost. That 600 crore is the ongoing. Sorry.
Mukul N. Dandige
You see now I’ll have to provide for standard assets also based on the PD and other things. Whatever is the floor in many cases. Suppose if my thing is very low still then as per RBA circular there is a floor beyond which I below which I cannot go. So based on all these things we estimate that around 600650 crores would be the total financial cost for an ongoing provision. Additional ongoing provision. So that will be easily balanced out of the new tax regime thing.
Ashlesh Sonje
I hope this is better. This 600 to 650 crore number. That is the increase in credit cost on ongoing basis or that is the final credit cost on ongoing basis.
Mukul N. Dandige
No, no, no. See what we are saying. Because of the transition to eclipse. Suppose if my SM is increase even normal. Normal course. As per the IRAC guidelines I need to maintain 0.25, 0.4% and 1% provision on all the assets. Here in the ECL regime there is different. I mean slabs provided. So based on that we estimate that additional provision required would be of the order of 600 to 650 crores. Because as my standard advances also increase there will be an additional outgo, right? So that that additional cost will be more than met out by my by by transition to new tax regime.
Where also we are seeing an upside of around 700 crores.
Kalyan Kumar
In nutshell. Actually I would like to tell you. Hey, the estimate which you are trying to plan because these things we have not simulated till now. But our strategy see unsecured loan. We are very cautious in unsecured loan. And also we are improving overall credit underwriting quality also monitoring aspect also being improved. In that way the impact which we are going to face due to implementation of ecl. We are very proactively and consciously working on those direction. We are working on the model on which actually we have to see and simulate the kind of things so that we can migrate.
But one thing I would like to say as Mukulji also told you that our reserves are surplus capital. We are very well capitalized. So therefore migration to ECL is not going to impact us in any any significant.
Ashlesh Sonje
Understood sir. Friend, just lastly your margin has improved quite a bit in this quarter by 30 basis points. But your yield on advances and cost of funds has not really moved. How to understand the reason for this increase in NIM
Kalyan Kumar
Yield on advances year on year basis it is 8.21% and in this quarter it is 7.5. And cost of deposit is actually if you see 4.82%. So in cost of deposit actually the reduction of only two basis points. But if you see in yield on advances it is 57 basis point dip. Major reason behind it actually our more than 60% 61% rather advances are external benchmark linked part that way impact was huge and our major advances as 61% I told you are external benchmarking. The rates are immediately actually passed on to the customer and the deposit get repriced with a lag.
So that was the major reason behind actually what you are saying. But currently actually we are working on these aspects also so that how we can revisit our processes that so that at larger scale our team can handle the sanction disbursement of retail agriculture and MSME site. And also deposit repricing also will happen in next quarter it will be completed. That margin part also will be improved.
Ashlesh Sonje
Sorry to interrupt but the question is on the quarter on quarter movement in nim. In spite of all the things you said, the name has actually Improved by about 30 basis points Quarter on quarter. That is the moment I’m trying to understand.
Mukul N. Dandige
See there is one item. We got a refund of 431crores in income tax interest as income tax interest. So that has also contributed towards improving the NIM on a quarter on quarter basis. This we accounted for in March 26 quarter. But excluding this item also the NIM has not been much impacted. I mean it was 2.96 in last quarter. It is around 2.89 or 2.90 in this quarter.
Ashlesh Sonje
Understood sir. Perfect. Thank you sir. Those are all the questions ahead.
Operator
Thank you. Participants, you may please press star N1 to ask a question. The next question is from the line of Siddhartha from Systematics Please go ahead.
Siddharth Rajpurohi
Thank you for the opportunity. Sir, can you give your total say standard asset provisions which are incremental to the IRAC norms?
Mukul N. Dandige
We are holding around the 0.87 to 0.88% of total provision on standard assets. So I mean this works out to roughly around. Roughly around 2800 to 2900 crores of total standard provision we are holding.
Siddharth Rajpurohi
Okay.
Mukul N. Dandige
Yeah.
Siddharth Rajpurohi
And what will be incremental as compared to what would be required? The gap would be almost
Mukul N. Dandige
The 1525 crores is straight away the ECL provision. That is the additional provision thereafter under the earlier 7 June RBI circular then restructuring also we are holding provisions. So all this put together, we are holding this around 2800, 2900.
Siddharth Rajpurohi
Okay, so what will be our gold loan book size and what will be the LTV in it and the yield on the same.
Mukul N. Dandige
Sorry,
Siddharth Rajpurohi
What will be our gold loan book, the LTV in it and the yield on the same
Kalyan Kumar
10,000 crore
Mukul N. Dandige
Total
Kalyan Kumar
Gold loan is around 28,000. Yes. And 8.04 is the total. 8.04 is the yield. 62%. 52% LTV is 52%.
Siddharth Rajpurohi
Okay, and what will happen, what would be the year on year growth in this book? Sir,
Kalyan Kumar
Year on year growth. Percentage actually for retail year on year growth it is 157% 6% and the total growth is 88.62%. And yield on gold loans under retail sector is 8.04%.
Siddharth Rajpurohi
Okay, so we have a kind of industry leading CASA and our LCR is also industry leading. So on liquidity side we are very strong. So how do you see. Because banks would have constrained in terms of deposits going forward and CDs rates are also moving up. So how do you see your yield kind of your limb kind of moving in the next year?
Kalyan Kumar
We have given direction that we are going to remain above 3% and in that way CASA and rightly said by you, liquidity is not a concern for us. Previous year we maintain 210, 210 actually as liquidity coverage ratio and CD also we have closed by 73.9. Ample scope of advances and also liquidity we are having which can support our growth and having good CASA base. We have actually good margin also through which we can maintain the NIM side and our focus area for this year, current year also and onward focus upon building upon our strong KASA built and base aligning with the customer behavior.
We are providing them ample opportunities for actually invest and all through our digital app and all. And regarding advances, RAM side where better margins are available. This is focus. Our 68% book as of March 26th is belonging to Ram. That is also going to continue. We have given 65 times 35 plus minus 5% guidance. So therefore I am sure confident that we will be able to maintain NIM above 3.
Siddharth Rajpurohi
Okay.
Operator
Sir, does that answer your question? You want to ask more?
Siddharth Rajpurohi
No, I’m fine. I am done with my questions.
Operator
Thank you. A reminder to all the participants, if you wish to ask a question please press star N1. As there are no further questions from the participants I now hand the conference over to the management for closing comments.
Kalyan Kumar
Yeah, thanks. Thanks for the opportunity and thank you for asking very good question and giving us opportunity to actually present the numbers and also strategy in front of you all investors. So I can tell you that Central bank of India actually not only we believe in numbers but also we believe in capability building and also our strategy for main focus towards building casa Retail agriculture, msme Containment of slippages, improvement in overall improvement in asset quality. And these are going to be the main focus area.
And I will be very happy to assure you all that all stakeholders the kind of dividend which we have given this year also and that that is going to be maintained. And in that way thanks for this opportunity and meeting. Anything else?
Operator
I’m sorry sir to interrupt. We have one question in the queue. Can we take it?
Kalyan Kumar
Yes please. All
Operator
Right, so we will take the next question from Pranay from gng. Please go ahead.
Unidentified Participant
Yeah, thank you. Thank you sir for the opportunity and sorry for punching this little late. So if I take off the two one off items which is the tax impact for that provision and your income tax refund our net profit would get basically settled at around 1050 crore. If I am right
Mukul N. Dandige
For
Kalyan Kumar
The quarter 32 and 732. 732 and 632.
Mukul N. Dandige
724 plus 632 minus 431. So 925. 925
Kalyan Kumar
Crore.
Ashok Ajmera
So
Unidentified Participant
What
Mukul N. Dandige
Was the tax?
Siddharth Rajpurohi
Yeah,
Mukul N. Dandige
See these tax refunds because we were supposed to make the payment advance tax and all we are, we are making whereas we were not required to actually pay any taxes because we had the business losses. So these, I mean even though it appears as a one off item but it has been a regular feature for the last five years. If you can see right from 2021 onwards we are getting these funds. This 632 crores DT impact. Yes, this I agree that this is actually one time and this will not happen. This will not be there next time onwards.
Unidentified Participant
Yeah. So in March 25th we had 318 crores. As other income. How much income tax refund would have been in that? What would be that component over there?
Mukul N. Dandige
March 25th quarter, you are saying?
Unidentified Participant
No. Year end March 25th. In interest income there is one line item others which is 318 crores.
Mukul N. Dandige
Yeah. So out of that income tax refund was around 2.280.72 crores.
Unidentified Participant
Okay. Okay. Okay, sir. Thank you so much.
Mukul N. Dandige
Thank you.
Operator
Thank you. That was the last question for today on behalf of Systematic Shares and Stock Ltd. That concludes this conference. Thank you all for joining us today. And you may now disconnect your lines.