Central Bank’s Q3 Surge Is Asset-Quality Leverage—32% Profit Jump on Lower Provisions + 19% Loan Growth

reported Q3 FY26 net profit of ₹1,263 crore, up 32% YoY from ₹959 crore, driven by lower provisions for bad loans and robust business expansion. ​ Total income rose 12.6% to ₹10,969 crore, with operating profit up 17% to ₹2,293 crore, while interest income grew 6% to ₹9,033 crore. The asset quality story dominates Gross NPAs improved sharply to 2.70% (down 116 bps YoY from 3.86%), net NPAs to 0.45% (down 14 bps), and provision coverage ratio edged up to 96.69%. ​ Provisions for NPAs fell to ₹276 crore from ₹310 crore YoY, directly boosting profitability as credit costs eased. Balance sheet expansion supports growth Total business hit ₹7.74 lakh crore (+16% YoY), with gross advances up 19% to ₹3.24 lakh crore and deposits up 13% to ₹4.51 lakh crore. ​ NIM compressed slightly to 2.96% from 3.45% YoY, but the volume-led growth and cleaner book signal a sustainable re-rating trajectory for this PSU bank. Source: The Hindu No Recommendation