PSU Bank Stock Surprises With 1.875% Dividend For FY25, Stellar Financials With Nearly 50% Profit Growth; Buy?

Tuesday saw a positive closing for Central Bank of India shares as the bank reported strong FY25 financials and increased investor confidence. The shares of Central Bank of India ended 1.20% higher at Rs 37.85 per share with a market cap of Rs 34,259.55 Cr.

Central Bank of India Dividend

"Pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015, we wish to inform that the Board of Directors of Bank at their meeting held today i.e. Monday, 28th April, 2025 at Mumbai inter-alia recommended final dividend of 1.875% i.e. Rs.0.1875 per equity share of Rs. 10 each for FY 2024-25, subject to the approval of the shareholders at the ensuing Annual General Meeting ("AGM") of the Bank," said Central Bank of India in a stock exchange filing on Monday.

Central Bank of India Q4 Results

In Q4FY25, the bank's net profit increased by 28.13 percent to Rs 1034 crore, up from Rs 807 crore in Q4FY24. For the fiscal year that ended on March 31st, 2025, net interest income was Rs 13897 crore, representing a 7.76% growth over the Rs 12896 of the same period the year before. When examined on a year-over-year basis, the Net Interest Margin (NIM) for the fiscal year remained flat at 3.40% compared to March 31, 2025.

Compared to Q4FY24, when it was Rs 9699 crore, the Central Bank of India reported that its total income (interest income + non-interest income) for Q4FY25 had increased by 7.57% to Rs 10433 crore. The bank's Return on Equity (ROE) increased to 13.21% from 11.68%, while its Return on Assets (ROA) rose to 0.90% for Q4FY25 from 0.76% for Q4FY24.

As of March 31, 2025, the bank's total business was worth Rs 702798 crores, up from Rs 636756 crores, representing a YoY rise of Rs 66042 crores, or 10.37%. As of March 31, 2025, total deposits were Rs 412697 crores, up Rs 27686 crores from the end of March 31, 2024, when they were Rs 385011 crores, representing a YoY rise of 7.19%. According to the bank, its total advances as of March 31, 2025, were Rs 290101 crores, up Rs 38356 crores (15.24%) on a year-over-year basis from Rs 251745 crores in the same period in 2024.

The bank's asset quality improved as gross non-performing assets (NPA) increased to 3.18 percent, indicating a 132 basis point improvement over 4.50%, while net non-performing assets (NPA) improved to 0.55%, indicating a 68 basis point recovery over 1.23%. According to the Central Bank of India, its provision coverage ratio improved by 296 basis points YoY to 96.54 percent.

As of March 31st, 2025, the bank maintained 20915 touch points throughout India, including a network of 4545 branches, including 2964 branches in rural and semi-urban regions (65.21%), 4085 ATMs, 12260 BC Points, and 25 BC Maxx Points.

Central Bank of India Share Price Target

"Central Bank of India looks strong on the chart. It is trading above its short-term support level of ₹36.80 and is building strength near the ₹40 level. The RSI indicator is rising, showing good buying interest. If it breaks above ₹40, the stock could move up to ₹43-₹44. On the downside, ₹36.80 is an important level to watch. As long as it stays above that, the trend remains positive. Traders can consider buying on dips with a stop-loss below ₹36.80," commented Riyank Arora - Technical Analyst - Mehta Equities Limited.

Disclaimer

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