Credit Rating

कें द्रीय कायाालय INVESTORS RELATION DIVISION Central Office CO:IRD:2026-27:176 Date: 07.10.2026 National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, Corporate Relationship Department, Plot No. C-1, ‘G’ Block, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Dalal Street, Fort, Bandra (E), Mumbai - 400051 Mumbai - 400001 Scrip Code – CENTRALBK Scrip Code – 532885 Dear Sir/Madam, Sub: Reaffirmation of Credit Rating. Pursuant to Regulation 30 of the Securities & Exchange Board of India (Listing Obligations and Disclosure Requirement) Regulations, 2015, we would like to inform that CARE Ratings Ltd has reaffirmed its rating for Certificate of Deposits as under :- Details of Credit Rating Current Rating Details Sr. Particular Name Credit Outlook Rating Specif Date of Verificat Date of No. of Rating (stable/ action y Credit ion verification Credit assigne positive/ (New/Upg other rating status of Rating d negative raded/dow rating Credit Agenc /no ngraded/ action Rating y outlook Reaffirm/ agency other) 1 Certificate CARE A1+ NA Reaffirmed NA 07.10.2026 Verified 07.10.2026 of Ratings Deposits Ltd Rs.20000/- crore We enclose a copy of Rating rationale dated 07.10.2026 issued by CARE Ratings Ltd. Kindly take the above on record. Thanking You. Yours faithfully, For CENTRAL BANK OF INDIA CHANDRAKANT BHAGWAT Company Secretary & Compliance Officer Encl.: As above Central Office: Chander Mukhi, Nariman Point, Mumbai - 400 021 ईमेल/Email ID:smird@centralbank.bank.in smird@centralbank.bank.in www.centralbank.bank.in Press Release Central Bank of India October 07, 2026 Facilities/Instruments Name of the Regulator1 Amount (₹ crore) Rating2 Rating Action Certificate of deposit RBI 20,000.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. Rationale and key rating drivers Reaffirmation of the rating assigned to the certificate of deposit (CD) programme of Central Bank of India (CBI) factors in improvement in capitalisation levels supported by strengthened internal accruals and equity capital raised in the recent years including equity infusion of ₹21,835 crore between FY16 to FY23 by the Government of India (GoI). CARE Ratings Limited (CareEdge Ratings) expects continuation of need-based funding support by the GoI. The rating continues to factor in majority ownership of and demonstrated support from the GoI in terms of funding, management and governance. The rating also factors in long track record of operations with established pan-India business franchise, diversified advances book with focus on non-corporate advances and favourable deposit base with sizeable current account and savings account (CASA) proportion. However, the rating considers that the bank’s asset quality and profitability remain moderate compared to peers, despite improving in the recent past. CareEdge Ratings expects the bank to maintain net interest margin (NIM) supported by its ability to maintain CASA mix amid challenging deposit mobilisation conditions across banking sector. The bank’s ability to manage slippages and improve profitability amid the current macroeconomic environment will remain a key monitorable. Rating sensitivities: Factors likely to lead to rating actions Positive factors - Factors that could individually or collectively lead to positive rating action/upgrade: • Not applicable Negative factors - Factors that could individually or collectively lead to negative rating action/downgrade: • Reduction in government support and ownership below 51%. • Deterioration in asset quality, with gross non-performing assets (GNPA) of 5% or more on a sustained basis. • Deterioration in capitalisation levels with cushion above the minimum regulatory requirement remaining lower than 100 bps on a sustained basis. Analytical approach: Standalone The rating is based on standalone financial profile of CBI and factors in strong and continued support from the GoI, which holds majority shareholding in the bank. Outlook: Not applicable Detailed description of key rating drivers Key strengths Majority ownership and support by GoI GoI continues to be the majority shareholder in CBI. Although, it offloaded 8.08% of stake in the bank through offer for sale (OFS), reducing the shareholding to 81.19% as on May 26, 2026, GoI continues to remain the majority shareholder in the bank. GoI has been supporting public sector banks with regular capital infusions and has undertaken steps to improve capitalisation, operational efficiency and asset quality considering the critical role and importance of public sector banks in the overall economy. CareEdge Ratings expects GoI to continue to support public sector banks including CBI, considering majority ownership and their importance to the financial sector. 1SEBI: Securities and Exchange Board of India; RBI: Reserve Bank of India; MCA: Ministry of Corporate Affairs; IRDAI: Insurance Regulatory and Development Authority of India; PFRDA: Pension Fund Regulatory and Development Authority. 2Complete definitions of ratings assigned are available at www.careratings.com and in other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Comfortable capitalisation levels Aided by regular equity infusion by the GoI, improvement in asset quality leading to lower credit cost and profitability in recent years leading to accretion to net worth, capitalisation profile of CBI improved over the years. The bank also raised ₹1,500 crore equity capital through Qualified Institutional Placement (QIP) in March 2025. The bank’s capital adequacy levels remained comfortably above regulatory requirement as the bank reported total capital adequacy ratio (CAR) of 18.28% (CET-1 and Tier-I: 16.54%) as on June 30, 2026 (March 31, 2026: CAR: 17.91% and CET-I ratio/Tier-I CAR: 15.61%), against regulatory requirement of CAR of at least 11.5%. Capitalisation ratios were in line with peer public sector banks (PSB). The bank based on its preliminary calculations, transition to expected credit loss (ECL) Norms from April 01, 2027, will have an impact of ~₹4,000 crore, while it holds provision of ~₹1,500 crore which would have an impact of ~110 bps on capital adequacy ratio. The bank has Board approval is in place for raising capital via Basel III instrument aggregating to ₹7,000 crore in FY27 subject to necessary regulatory approvals. Given majority ownership by GoI, CBI is expected to receive timely and adequate support in the form of capital. CareEdge Ratings expects the bank to maintain capital cushion of at least 100 bps above minimum regulatory requirement in the near term. Diversified advances profile with high share of retail advances The bank has seen significant growth in advances in the last five years, and its net advances grew at ~19% in FY26 compared to industry growth of ~16%. The bank’s gross advances stood at ₹3,44,516 crore as on March 31, 2026, against ₹2,90,101 crore as on March 31, 2025, registering growth of ~19%. The bank continued focusing on segments of retail, agriculture and micro, small and medium enterprise (MSME; RAM segment), which constituted major portion of advances. Share of RAM advances to total advances increased marginally from 66.90% on March 31, 2025, to 68.09% on March 31, 2026. Within RAM advances, major segment was retail, constituting ~30% of total advances led by home loans (constituting 57% of retail loans). Agriculture loan portfolio and MSME loans constituted ~18% and ~20% of total advances, respectively, as on March 31, 2026. The advances portfolio mix remained stable as on June 30, 2026. Established franchise with strong deposit base and comfortable CASA proportion The bank has a track record of over a century and has developed a pan-India business franchise with a network of 4,606 branches and 3,820 ATMs as on June 30, 2026. CBI’s deposits grew ~13% in FY26, with deposits increasing from ₹4,12,697 crore on March 31, 2025, to ₹4,67,922 crore on March 31, 2026. CASA deposits grew at a slower pace of ~1 [Showing first 8,000 characters — download PDF for full document]