Central Bank of India's certificate of deposits rating reaffirmed

Central Bank of India's Certificate of Deposits (CD) program, valued at ₹10,000 crore, has been reaffirmed with a 'CARE A1+' rating by CARE Ratings Ltd. This affirmation, announced on December 12, 2025, follows improvements in the bank's capitalisation levels, driven by equity infusions from the Government of India (GoI) and internal accruals. The bank successfully raised equity capital of ₹1,500 crore in FY25 through a Qualified Institutional Placement (QIP).

The reaffirmation also acknowledges the GoI's continued majority ownership (89.27% as of September 30, 2025) and demonstrated support, including total equity capital infusions of ₹21,835 crore between FY16 and FY23. The bank's diversified advances, with a focus on non-corporate lending, and its established pan-India business franchise with a strong deposit base and CASA proportion, were also noted as key strengths.

While the bank's asset quality and profitability have shown moderate improvement, CARE Ratings anticipates some pressure on the Net Interest Margin (NIM) in FY26 due to faster repricing of advances post-rate cuts. Despite this, the bank's total capital adequacy ratio stood at 17.34% as of September 30, 2025, comfortably above regulatory requirements.