Central Bank of India expects over ₹3,500 cr recovery from bad loans in FY27

The state‑run Central Bank of India plans to raise more than ₹3,500 crore by recovering bad loans, a step intended to strengthen its balance sheet in FY27.

He said, “The bank has roughly ₹32,000 crore in technically written‑off accounts. In FY26 we recovered ₹2,270 crore from such accounts, and we anticipate another ₹2,300‑2,500 crore this year, which will significantly boost our bottom line,” Kalyan Kumar, MD & CEO of Central Bank of India, told PTI.

He added that for the current fiscal year, total loan recoveries are projected to range from ₹3,500 crore to ₹4,000 crore.

In the fiscal year ending March 2026, the bank’s total recovery amounted to ₹3,307 crore.

The Mumbai‑based lender has introduced special one‑time settlement schemes focusing on agricultural loans and has stepped up recovery drives, such as property exhibitions and SARFAESI proceedings.

Kumar further noted that the bank intends to launch wealth‑management and credit‑card services in the second half of the current fiscal year to lift fee‑based earnings.

The board has already given its approval for these initiatives.

“We are presently preparing an RFP to bring in experts who can help us start this venture,” he said. “We expect to have the service ready by mid‑year.”

He also mentioned that the bank is working on additional products aimed at boosting non‑interest income.

For corporate clients, Kumar explained that cash‑management services are crucial; the product is under development and slated for launch in August. The bank will also centralise foreign‑exchange sales linked to letters of credit and guarantees, and begin a dedicated forex business, initially targeting its own corporate customers who currently use similar services elsewhere.

Recently, Central Bank of India declared its fourth interim dividend for 2025‑26 at a rate of 6 %.

This brings the cumulative interim dividend for 2025‑26 to 12 %, which includes the 6 % paid for the first three quarters. The total dividend payout to the Government of India for FY26 amounts to ₹969.64 crore.

The dividend payout underscores the bank’s solid financial results, improved profitability, and ongoing dedication to delivering value to stakeholders while supporting national economic growth.

Published on June 4, 2026