Central Bank Plans New Business Verticals To Lift Profitability

State-owned Central Bank of India is preparing to enter new business segments, including credit cards, wealth management services and offshore banking operations at GIFT City, as it looks to improve profitability and diversify revenue streams beyond traditional lending.

Managing Director and CEO Kalyan Kumar said the lender is focusing on building fresh fee-based income channels while making better use of its strong liquidity position. The bank is also aiming to rebalance its loan mix towards higher-yield retail segments to support margins.

The move comes after the bank reported a net profit of ₹4,369 crore in FY26, up 15.43% year-on-year. Total business rose to ₹8.12 lakh crore, compared with ₹7.03 lakh crore a year ago, registering growth of around 15.6%. Total deposits stood at ₹4,67,923 crore, up 13.38%, while gross advances increased 18.76% to ₹3,44,516 crore.

Central Bank shares fell by 7.81% to close at ₹31.27 on the National Stock Exchange on 22 May 2026.

Bank Bets On New Revenue Streams Beyond Traditional Lending

Central Bank’s management said launching a credit card business will help expand customer engagement and generate higher fee income. Its proposed wealth management platform is expected to target affluent deposit customers while improving non-interest income contribution. The planned GIFT City branch will allow the bank to tap into international banking opportunities and serve corporate clients with offshore requirements.

The bank currently maintains a Liquidity Coverage Ratio (LCR) of around 210%, more than double the regulatory requirement of 100%, giving it room to deploy funds more aggressively into lending instead of low-yield investments such as government securities.

Central Bank Prioritises Retail, Agriculture and MSME Growth

Management is also targeting a shift in the composition of its loan book. The bank wants Retail, Agriculture and MSME (RAM) loans to contribute around 65% of the portfolio, with corporate loans making up the remaining 35%. Retail credit remains the fastest-growing segment, with retail advances rising 25.67% in FY26. Agriculture lending grew 17.60%, while MSME advances rose 17.06%.

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Sources:

The Hindu

Economic Times