Central Bank of India Management Discussions

Global Economy

Overview

The global economy demonstrated relative stability throughout 2024, with projections at the start of 2025 suggesting a continuation of this trend. However, the economic landscape has shifted markedly following the ascent of a new administration in the United States and the subsequent introduction of significant tariff measures in April 2025. These actions have prompted retaliatory measures from major trading partners, escalating trade tensions and amplifying financial market volatility and policy uncertainty worldwide. As a result, the International Monetary Fund (IMF) has revised its global growth projections downward, forecasting a deceleration from 3.3% in 2024 to 2.8% in 2025, with a modest recovery to 3.0% anticipated in 2026. This projected growth for 2025 remains notably below the historical average of 3.7% observed from 2000 to 2019.

Despite these headwinds, the global economy has shown resilience in recovering from prior shocks. The past year witnessed a notable moderation in inflation, a normalization of labor markets, and a return of unemployment rates to pre-pandemic levels. Nevertheless, beneath the surface of aggregate stability, significant disparities persist across countries, driven by divergent shocks, structural characteristics, and policy responses. Rising geopolitical tensions and widening domestic imbalances—particularly weak demand in China and robust demand in the United States—have renewed concerns over global economic imbalances.

Manufacturing activity remained subdued throughout 2024, especially in developed economies such as those in Europe, largely due to elevated energy prices. In contrast, the services sector outperformed manufacturing across all major economies, as reflected in higher Purchasing ManagersRs Index (PMI) readings. Global headline inflation is expected to moderate from 5.7% in 2024 to 4.3% in 2025, and further to 3.6% in 2026.

Recent Developments and Outlook

According to the most recent World Bank Global Economic Prospects report (June 2025), heightened trade tensions and policy uncertainty are expected to result in the weakest global growth since 2008, excluding periods of outright recession. Growth forecasts have been downgraded for nearly 70% of all economies, spanning all regions and income groups. Global growth is now projected at 2.3% for 2025—almost half a percentage point lower than previously anticipated at

the start of the year. While a global recession is not expected, if current projections hold, the first seven years of the 2020s are set to exhibit the slowest average global growth since the 1960s.

Central banks worldwide have responded to heightened risks by expanding their foreign reserves and increasing gold purchases. Over the past three years, central banks have acquired over 1,000 tons of gold annually. Gold prices reached an all-time high of $3,300 per ounce in April 2025, reflecting a 40% gain over the prior year. This surge is attributed to increased investment demand amid financial market volatility and geopolitical uncertainty.

Advanced Economies

Growth in advanced economies is expected to moderate from 1.8% in 2024 to 1.4% in 2025, with a slight uptick to 1.5% projected for 2026. Most advanced economies are anticipated to experience a deceleration in growth, with the notable exception of Germany, which is expected to stabilize after a contraction in 2024. The United States is projected to grow by 1.8% in 2025, down from 2.8% in 2024, largely due to weaker consumption and heightened policy uncertainty. The Euro Area is forecast to grow by 0.8% in 2025 before recovering to 1.2% in 2026, while JapanRss economy is expected to expand by 0.6% in both 2025 and 2026.

Emerging Market and Developing Economies

Growth in EMDEs is anticipated to decline from 4.3% in

2024 to 3.7% in 2025, with a modest rebound to 3.9% in 2026. India remains a key growth driver within this group, with projected GDP growth rates of 6.8% for FY2024 and 6.5% for FY2024-25. ChinaRss growth is projected at 4.0% for

2025 and 2026, reflecting the impact of recent tariffs and fiscal measures. IndiaRss growth for 2025 is expected at 6.2%, supported by robust private consumption, particularly in rural areas, although this is slightly lower than earlier projections. EMDEs now account for 60.64% of global GDP on a purchasing power parity basis, while advanced economies contribute 36.36%.

India Economy

GDP Growth

IndiaRss economy is projected to achieve 6.5% growth in 202425 according to the Central governmentRss Second Advance Estimates. This expansion will be primarily fueled by robust performance in construction, financial services, real estate, professional services, and public administration sectors. Agriculture emerged as the standout performer among major

sectors, with growth accelerating from 2.7% in 2023-24 to 4.6% in 2024-25, buoyed by favorable monsoon conditions and enhanced food grain output. However, manufacturing witnessed a significant deceleration, dropping from 12.3% to 4.3%, while construction growth moderated from 10.4% to 8.6%. This slowdown stemmed from reduced economic activity during election periods and elevated non-fuel commodity prices that constrained sectoral performance.

From a demand perspective, private household consumption will serve as the primary growth engine, surging to 7.6% in 2024-25 from 5.6% previously, driven by strengthening rural demand that has consistently outperformed urban consumption for five consecutive quarters. Conversely, government expenditure growth is expected to decelerate to 3.8% from 8.1% in 2023-24, despite second-half recovery and relaxed capital expenditure guidelines. Investment growth faces headwinds as public sector momentum slows and private capital expenditure remains subdued due to uneven demand patterns and regulatory challenges. Industrial credit growth has also softened to 7.8% in March 2025 compared to 8.5% the previous year.

Looking ahead, declining retail inflation and the Reserve Bank of IndiaRss monetary easing cycle, anticipated to continue through 2025-26, create favorable conditions for industrial expansion, consumption growth, and overall economic momentum. Nevertheless, external risks including financial market volatility stemming from global trade tensions could potentially dampen IndiaRss growth trajectory in 2025-26 relative to the current fiscal yearRss performance.

Inflation

Retail inflation, as measured by changes in the Consumer Price Index (CPI), averaged 4.63% in the year ending March 2025, a noticeable moderation from 5.36% a year prior. In March 2025, headline retail inflation reached 3.34%, marking its lowest point in nearly six years. This decline can be primarily attributed to lower crude oil prices during 202425 compared to the previous year, despite a slight uptick in the March quarter of 2025. Furthermore, a significant factor contributing to the lower inflation trajectory has been the moderation in food inflation, driven by a recovery in food grain production in 2024-25 and more favorable monsoon seasons.

Looking at the current fiscal year (2025-26), retail inflation for April-May has averaged around 2.99%, a substantial decrease from 4.82% in the corresponding period of 202425. This continued moderation in headline inflation is largely

linked to the easing of food inflation, a direct result of higher agricultural production in 2024-25 compared to 2023-24. However, itRss worth noting that core inflation is showing signs of stress, primarily due to rising gold and silver prices. This uptick in precious metal prices is linked to volatility in financial markets, influenced by shifts in the policies of advanced economies, prompting investors to increase their gold holdings as a safe-haven asset.

Policy Rates

In February 2025, the Reserve Bank of India (RBI) initiated its first repo rate cut in two years. This was followed by a strategic shift to an accommodative monetary policy stance in April 2025, a move designed to bolster economic growth amidst prevailing global uncertainties. Concurrently, India saw a notable moderation in retail inflation, settling at 4.63% for the fiscal year ending March 2025. Headline inflation reached a six-year low of 3.34% in March 2025, primarily influenced by declining crude oil prices and robust food grain production. Building on this trend, the June 2025 MPC meeting delivered a surprise 50 bps repo rate cut and a 100 bps CRR reduction, firmly shifting the policy stance to “neutral.” This aggressive move aims to further inject liquidity and stimulate growth, especially as retail inflation in May 2025 eased significantly to 2.82%, the lowest since February 2019, driven by a sharp decline in food inflation.

Industrial Production

Industrial output, as measured by the Index of Industrial Production (IIP), averaged 4% growth in 2024-25, a moderation from the 5.9% recorded in the previous fiscal year. The IIP growth was supported by positive trends in some consumer durable goods, though broader consumption remained subdued, particularly in rural areas. Manufacturing PMI remained robust, consistently above the 50-mark, with notable resilience seen in 2024-25; however, specific annual averages are not directly cited in recent data, though monthly figures often hovered in the high 50s and low 60s, reflecting sustained expansion.

Currency Exchange Rates

The Indian Rupee concluded FY2024-25 with a 2.42% depreciation against the US Dollar, though it staged a significant comeback in March 2025, reaching Rs 85.47 per dollar due to a softer dollar index and renewed foreign investment. However, June 2025 has seen renewed pressure, with the Rupee depreciating to 86.42 per USD by June 18, primarily driven by heightened geopolitical tensions, particularly in the Middle East, which led to a notable 0.6% fall

on June 13. Analysts predict continued near-term volatility, with the Rupee likely trading between 85.25 and 86.25 per USD.

The RupeeRss performance in FY2025-26 will remain highly susceptible to external factors. The “higher-for-longer” interest rate scenario in the US, could strengthen the Dollar and pressure emerging market currencies. Furthermore, rising protectionism, especially with new US tariffs on autos and energy, and elevated crude oil prices (Brent above $74/ barrel) could widen IndiaRss current account deficit to an estimated 1.3% of GDP, potentially increasing Rupee volatility if foreign fund flows reverse. Despite these headwinds, IndiaRss robust macroeconomic fundamentals, including projected 6.5% GDP growth in FY26, benign inflation, a comfortable foreign exchange reserve buffer of $696.65 billion as of June 6, 2025, and a low external debt-to-GDP ratio (around 18% as of March 2025), provide a crucial degree of domestic resilience against these global shocks.

Trade and Current Account

The merchandise trade deficit widened sharply in 202425, with the April 2025 deficit reaching $26.42 billion, the highest since November 20245. Over the fiscal year, exports of goods and services reached a record high of $825 billion, with services exports surging over 13%6. On a year-on-year basis, the merchandise trade deficit expanded significantly, while the services trade surplus also grew robustly. The overall exports of goods and services increased by approximately 5.5% in 2024-25, with strong growth in services offsetting slower merchandise increases.

Foreign Portfolio Investors

Foreign Portfolio Investors (FPIs) were net sellers in Indian equities during FY2024-25, registering cumulative net outflows of Rs1.27 lakh crore from the stock market. However, overall net FPI inflows remained positive, largely due to a significant resurgence of interest in Indian debt markets. Investments in government securities (G-Secs) surged to a five-year high of Rs1.32 lakh crore, with total FPI inflows into Indian debt markets reaching Rs33,162 crore in FY2024-25. This renewed appetite for Indian debt is primarily driven by the inclusion of Indian bonds in global indices, a trend that began with JPMorgan adding Indian government bonds to its Global Emerging Market Bond Index in June 2024, followed by BloombergRss EM Local Currency Government Index in January 2025, and FTSE RussellRss Emerging Markets Government Bond Index from September 2025.

In response to this growing interest and to further streamline foreign investment in Indian government debt, the Securities and Exchange Board of India (SEBI) announced a series of relaxations for GS-FPIs (FPIs that solely invest in government securities) . The relaxation of investment norms for FPIs in corporate bonds is also anticipated to further boost inflows in the coming year, signaling a more diversified and robust foreign investment landscape for India.

Banking Sector Overview

Credit Growth

Year-on-year growth in non-food credit of scheduled commercial banks (SCBs) declined from 20.2% in 2023-24 to 11.0% in 2024-25. The annual growth in total SCB credit stood at 11.03% in 2024-25, the lowest since 2021-22. Credit to agriculture and allied activities grew at 10.42%, the lowest since 2019-20, while personal loans grew by 11.65%, the lowest since 2020-21. Services sector credit growth was 12.4%, the lowest since 2021-22. Private sector banks saw a sharper drop in loan growth compared to public sector banks, with a steep decline of 9.5% in March 2025 after several years of strong growth.

Deposit Growth

Aggregate bank deposits grew by 10.6% in 2024-25, compared to 13% (net of merger) in 2023-24. Higher returns on term deposits led to greater accretion in these deposits compared to other types. The share of savings deposits in total deposits fell to 29.1% in March 2025 from 30.8% a year earlier, while term deposits increased to 60.61%. The share of term deposits bearing interest above 7% rose to 72.7% in March 2025 from 64.2% a year ago. The share of bank deposits held in metropolitan cities rose to 53.2% in March 2025 from 50.9% in March 2020.

Asset Quality

The asset quality of SCBs improved significantly, with the overall non-performing assets (NPA) ratio decreasing to 2.6% at the end of September 2024 from 2.8% at the end of March 2024. Improvement was broad-based, with agriculture showing the highest GNPA ratio at 6.2%, followed by industry (2.9%) and services (2.5%). Personal loans had the lowest GNPA at 1.2%. CRAR and CET1 ratios stood at 16.7% and 14.0% respectively in September 2024, well above regulatory requirements.

Profitability

Banking sector profitability improved, driven by a rise in non-interest income. Public sector banksRs cumulative profit reached a record Rs1.78 lakh crore in 2024-25, a 26% year- on-year increase. Interest income grew by 7.9% year-on-year to Rs2.09 lakh crore in the March 2025 quarter, with advances rising 13% year-on-year. Non-interest income surged by 32.2% year-on-year to Rs0.41 lakh crore in the March 2025 quarter, supported by a bull run in equity markets and softening yields.

The outlook for the banking industry in 2025-26 presents a cautiously optimistic landscape anchored by strong fundamentals yet tempered by emerging challenges. The sector enters the new fiscal year from a position of considerable strength, with improved asset quality, robust capital adequacy ratios, and record profitability achieved by public sector banks, demonstrating operational resilience and efficiency gains. The accommodative monetary policy environment, coupled with benign inflation creates favorable conditions for credit expansion and lower funding costs. However, the sharp deceleration in non-food credit growth reflects cautious market sentiment and uneven demand patterns across sectors. While deposit mobilization shows resilience with a strategic shift toward higher-yielding term deposits, banks face the dual challenge of managing funding costs and maintaining growth momentum amid global trade tensions, financial market volatility, and geopolitical uncertainties that could impact foreign investment flows and economic sentiment. The industryRss success in 2025-26 will largely depend on institutionsRs ability to leverage their strong capital positions and improved asset quality to navigate the evolving credit landscape, capitalize on infrastructure development opportunities and foreign investment in Indian debt markets following global index inclusions, while maintaining prudent risk management practices in an environment of external uncertainties and moderating but stabilizing domestic growth conditions.

Central Bank of India Performance Highlights for Fiscal Year 2024-25 Total Business Growth

Central Bank of India sustained its positive growth trajectory during FY2024-25. The BankRss total business (advances plus deposits) stood at Rs7,02,798 crore as at 31 March 2025, registering a year-on-year growth of 10.37%, as compared to Rs6,36,756 crore as at 31 March 2024. This continues the momentum built in FY2023-24, when total business had expanded by 10.34%.

Advances and Credit-Deposit Ratio

The BankRss gross advances rose to Rs2,90,101 crore as at 31 March 2025, reflecting a robust year-on-year growth of 15.24% over Rs2,51,745 crore as at 31 March 2024. This follows a growth of 15.60% recorded in the preceding fiscal. As a result, the Credit-Deposit ratio improved substantially, increasing by 494 basis points to reach 70.53% as at 31 March 2025, compared to 65.59% a year earlier.

Performance Highlights

FY2024-25 was marked by continued improvement in both profitability and asset quality. Central Bank of India reported a net profit of Rs3,785 crore, representing a significant growth of 48.49% over the Rs2,549 crore reported in FY2023-24. The Bank also recorded substantial enhancement in asset quality:

• Gross Non-Performing Assets (GNPA) declined to 3.18%

• Net NPA reduced to 0.55%

Both metrics reflect the BankRss prudent risk management and ongoing efforts in strengthening its asset portfolio.

Resource Mobilisation

The Bank recorded steady growth in its deposit base during FY2024-25. Total deposits increased to Rs4,12,697 crore as at 31 March 2025, up 7.19% from Rs3,85,011 crore as at 31 March 2024. This growth is in line with the 7.16% rise registered in the preceding year, indicating consistency in liability mobilisation.

CASA Deposits

CASA deposits, a key source of low-cost and stable funding, reached Rs2,01,173 crore as at 31 March 2025, marking a growth of 4.79% over Rs1,91,969 crore a year earlier. However, the CASA ratio moderated to 48.91%, down by 111 basis points from 50.02% as at 31 March 2024. This reflects the broader market trend of depositor migration towards higher-yielding term deposits.

Core Deposits

Core deposits—comprising CASA and core retail time deposits—registered healthy expansion during the year. As at 31 March 2025, total core deposits stood at Rs4,11,301 crore, compared to Rs3,83,808 crore as at 31 March 2024, reflecting a year-on-year growth of 7.16%.

Strategic Initiatives and Business Transformation

Central Bank of India continued to advance its strategic transformation agenda in FY2024 - 25, undertaking a broad range of initiatives across digital innovation, inclusive finance, operational excellence, and sustainability. These efforts were designed to deepen customer engagement, improve service delivery, enhance portfolio quality, and drive long-term value creation.

Driving Growth Through Emerging Business Models

The Bank made significant strides in expanding its emerging business portfolio, particularly through collaborative credit delivery models and digital lending ecosystems. A major development during the year was the operationalisation of Supply Chain Finance (SCF), anchored by partnerships with PSB Alliance Pvt. Ltd. and Tata Motors Passenger Vehicles Ltd. (TMPVL). The SCF platform is expected to scale further, with a target mobilisation of Rs3,000 crore in FY2025 - 26.

In tandem, the Bank strengthened its co-lending framework, adding eight new NBFC/HFC partners and bringing the total to 34. These partnerships enabled a broader outreach in traditionally underserved segments within the Retail, Agriculture, and MSME sectors. Co-lending sanctions totalled Rs8,544.64 crore, with Rs14,285.08 crore in outstanding exposure as of 31 March 2025.

Accelerating Digital Transformation

Digitalisation continued to be a key enabler of operational agility. The Bank enhanced its Digital Lending Platform (DLP), which now supports 57 digital journeys across core segments. Key MSME-focused schemes such as Cent Mudra, Cent Saral, and Cent Business were integrated onto the DLP, and the Cent GST Loan Scheme is scheduled to go live by April 2025. These platforms have significantly improved turnaround times and customer experience.

Performance on the TReDS platform was equally strong, with outstanding balances growing by 51.05% to Rs3,047.40 crore and total turnover reaching Rs14,942.21 crore. The platform reported zero overdue accounts and contributed Rs167.64 crore in interest income. The approvals are in place to participate in C2TReDS, reinforcing its commitment to MSME liquidity solutions.

Other digital innovations included the deployment of the AI-driven Cent Chanakya chatbot, a Microservices-based

containerised architecture, and automated deployment tools, all of which enhanced IT scalability and responsiveness. Digital adoption witnessed strong growth, with:

• Mobile Banking users up 20.19% to 91.90 lakh

• Internet Banking users up 9.01% to 114.29 lakh

• UPI users up 24.50% to 41.32 lakh

MSME-Centric Innovation

Recognising the critical role of MSMEs in the Indian economy, the Bank launched two thematic schemes:

• Cent MSE GIFT (Green Investment and Financing for Transformation)

• Cent MSE SPICE (Scheme for Promotion and Investment in Circular Economy)

These schemes are designed to support environmentally conscious enterprises and enhance competitiveness in cluster-based MSME ecosystems. The Bank is also working on customising credit frameworks for specific MSME clusters to drive regionally inclusive growth.

Enhancing Asset Quality and Recovery Performance

Maintaining superior asset quality remained a key objective. As of 31 March 2025:

• Gross NPA declined to 3.18% (below the internal target of 4%)

• Net NPA fell to 0.55%

• Provision Coverage Ratio (PCR) improved to 96.54%

• Slippage Ratio was contained at 0.56% (quarterly basis)

• Annualised Credit Cost stood at 1.10%, within the guidance of 1.00 - 1.25%

For FY2025, total recovery efforts were aimed at achieving Rs4,500 crore, exceeding the prior yearRss recovery of Rs3,636 crore. The Bank has internally targeted a reduction in Gross NPAs to below 3.00% by FY2025-26. Against this backdrop, total recoveries in FY2025 stood at Rs3,396 crore.

Diversifying Revenue Streams and Cost Efficiency

While detailed figures for fee-based income in FY2025 were not disclosed, the Bank reaffirmed its strategy to expand

non-interest income streams. Key contributors included recovery-related inflows and service-based charges, aimed at bolstering financial resilience.

The Bank continued its efforts to optimise the cost-to-income ratio, with a target of bringing it below 50% over the long term. For FY2025, the Bank had aimed to contain this ratio within the range of 50% to 52%; however, it stood at 58.87%. For the current fiscal year (FY2026), the Bank is targeting a revised level below 56%. Ongoing process streamlining, digital integration, and resource efficiency initiatives are expected to enhance operating leverage and support sustained improvement in cost efficiencies.

Investing in Service and Relationship Management

FY2025 marked the operationalisation of the Integrated Customer Care (ICC) platform, enhancing end-to-end service delivery. The platform enabled faster grievance redressal, omni-channel customer interaction, and real-time complaint tracking via CRM integration. These enhancements have elevated the BankRss service standards and contributed to customer satisfaction.

Promoting Green Banking and Financial Inclusion

As part of its ESG commitment, Central Bank of India advanced its green banking initiatives by offering products such as:

• Cent e-Vehicles (electric mobility financing)

• Cent Suryaghar (solar rooftop loans)

• Green Deposit Accounts

The Bank also continued to evaluate customised products targeting sectors like renewable energy, waste management, and climate-smart agriculture.

Parallelly, financial inclusion remained a strategic priority. The Bank expanded its self-employment financing programmes for educated youth and deepened fintech partnerships, leveraging the Account Aggregator framework to simplify credit access and documentation. Through the Cent Connect Programme, the Bank actively re-engaged dormant customers and revitalised relationships to support cross-sell and retention strategies.

Credit Highlights

In FY2024 - 25, Central Bank of India recorded strong credit performance, underpinned by disciplined portfolio

expansion, robust risk oversight, and a strategic emphasis on inclusive growth. The BankRss advances grew across all key sectors, supported by continued focus on the RAM (Retail, Agriculture, MSME) segments, expansion of corporate credit, and targeted digital and co-lending initiatives.

Advances Growth

The Bank reported significant growth in its advances portfolio, with Gross Advances reaching Rs2,90,101 crore

as at 31 March 2025, marking a year-on-year growth of 15.24% over Rs2,51,745 crore recorded at the end of the previous fiscal. This expansion was broad-based across both RAM and corporate segments, reflecting balanced portfolio development.

The RAM portfolio grew from Rs1,67,126 crore to Rs1,94,082 crore, registering a robust growth rate of 16.13%. Within this, the Retail segment expanded by 15.72% to Rs82,383 crore, while MSME lending rose by 18.79% to Rs59,243 crore. Agricultural credit also witnessed a healthy uptick of 13.88%, reaching Rs52,456 crore. The Corporate segment increased from Rs84,619 crore to Rs96,019 crore, recording a 13.47% rise. Consequently, the BankRss Credit-Deposit Ratio (excluding interbank deposits) improved to 70.53% as at 31 March 2025, up from 65.59% a year earlier, demonstrating enhanced credit deployment efficiency.

The advances portfolio as of 31 March 2025 comprised:

• Corporate Credit: 33.10%

• MSME Credit: 20.42%

• Agriculture Loans: 18.08%

• Retail Segment: 28.40%

The co-lending programme continued to support advances growth, with partnerships targeting underserved borrower segments in Retail, Agriculture, and MSME. As at 31 March 2025, co-lending sanctions totalled Rs8,544.64 crore, with outstanding loans of Rs14,285.08 crore.

Interest income on advances also reflected this growth, rising 13.36% year-on-year to Rs22,339 crore, underscoring the improving earnings profile of the credit book.

Loan Policy and Risk Management Framework

The Bank sustained its strategic orientation towards credit risk mitigation and asset quality enhancement through a suite of policies and operating procedures. While no major policy changes specific to FY2025 were detailed, several

foundational measures implemented in earlier periods continued to shape credit operations. These included:

• Rationalisation of lending rates.

• Bringing borrower exposures within the Large Exposure Framework.

• Activation of the Corporate Credit Guarantee Enhancement Line (CGECL) and invocation of the OneTime Restructuring (OTR) framework for eligible cases.

• Deployment of a Standard Operating Procedure (SOP) for managing externally rated account downgrades.

• Extension of EBLR-linked ROI products for long-tenor financing (up to 15 years).

In addition, the Bank maintained stringent credit surveillance mechanisms. The Credit Monitoring Committees, War Rooms for Special Mention Accounts (SMA), and root cause analyses remained integral to proactive risk containment. Regular reviews of delegated credit limits and loan portfolio performance contributed to strong underwriting discipline and enhanced portfolio resilience.

Corporate Credit and Strategic Initiatives

Corporate lending continued to form a core component of the BankRss growth strategy. As at 31 March 2025, Corporate Credit stood at Rs96,019 crore, contributing 33.10% to the total advances portfolio. Growth in this segment was supported by both traditional working capital lending and newer business models such as Supply Chain Finance and digital invoice discounting.

During the year, the Bank launched its Supply Chain Finance (SCF) platform as a key enabler of vendor and dealer financing. This initiative was formalised through Memoranda of Understanding with PSB Alliance Pvt. Ltd. for digital SCF integration, and with Tata Motors Passenger Vehicles Ltd. (TMPVL) for anchor-based financing. The Bank has identified several additional anchor corporates for onboarding and has set a SCF mobilisation target of Rs3,000 crore for FY2025 - 26.

The Trade Receivables Discounting System (TReDS) platform also demonstrated solid momentum. Outstanding balances grew by 51.05% year-on-year to Rs3,047.40 crore. The Bank onboarded 33 new corporate clients, with a combined exposure of Rs830 crore, and enhanced exposure in existing accounts by Rs625 crore. The platform facilitated total transactions worth Rs14,942.21 crore in FY2025, a

marked increase from Rs11,210.84 crore in the previous fiscal. Additionally, the Bank secured approval to participate in C2TReDS, the fourth RBI-recognised TReDS platform, thereby expanding its reach in digital MSME financing.

To ensure quality within the corporate credit book, the Bank continued to shift its exposure towards AAA-rated borrowers, reinforcing credit standards and limiting potential downside risks. Operational platforms such as Credit Processing and Approval Centres (CPAC) and war rooms for SMA monitoring, established in the prior year, were further institutionalised to ensure timely decision-making and early detection of stress in high-value exposures.

Credit Monitoring and Policy

Central Bank of India has continued to strengthen its credit monitoring and policy framework in FY2024 - 25, guided by a structured and integrated risk management approach. The BankRss credit oversight strategy is built on five key pillars: comprehensive risk governance, robust credit monitoring practices, early warning mechanisms, external oversight through specialised agencies, and digitally enabled collection and recovery infrastructure. Together, these elements ensure prudent credit deployment, early stress detection, and timely corrective actions.

Strengthening Risk Governance and Oversight

At the heart of the BankRss credit operations is a robust risk management architecture grounded in board-approved policies. The Risk Management Committee of the Board provides strategic oversight on credit, market, and operational risks, including policy formulation, risk model evaluation, and regulatory compliance. Operationally, the Credit Risk Management Committee (CRMC), chaired by the MD & CEO, steers the BankRss credit risk strategy. The CRMC reviews sectoral risk, calibrates exposure limits, and monitors implementation of credit policies.

To support granular risk evaluation, the Bank uses sector- specific internal rating models covering corporates, infrastructure entities, NBFCs, SMEs, and agriculture borrowers. Scorecard-based models are also applied for retail loans. These risk assessment tools are embedded into credit appraisal workflows to enhance objectivity and consistency. Regional and zonal offices are equipped with designated Risk Managers to act as extensions of the Central Risk Management Department, while Nodal Officers across functional departments ensure integrated control and governance.

Comprehensive Credit Monitoring Mechanisms

The Credit Monitoring & Policy Department, headed by a General Manager, orchestrates the BankRss end-to-end monitoring framework. Key activities include:

• Monthly Credit Monitoring Committee meetings at controlling offices and large branches, reviewing account health, delegated authority usage, and Special Mention Account (SMA) analytics.

• Loan Review Mechanism (LRM) tracking to assess the status and performance of sanctioned loans.

• Stock audits for Cash Credit/Overdraft accounts exceeding Rs5 crore, ensuring proper inventory validation.

• Quarterly performance reviews of borrower accounts— including listed entities—benchmarking actual outcomes against projections.

• Security verification and documentation audits to maintain compliance integrity.

• Regular submissions to Credit Information Companies, NeSL, and CERSAI, alongside regulatory reporting and default tracking.

• A centralised staff accountability cell to ensure procedural integrity and examine lapses where necessary.

Early Warning and Pre-emptive Action

The Bank has institutionalised an Early Warning Signals (EWS) framework to proactively identify emerging stress in borrower accounts. A dedicated portal enables digital flagging of accounts exhibiting signs of financial or operational stress. This enables timely intervention in line with RBI norms and facilitates dynamic reassessment of borrower risk ratings. Risk mitigation strategies are deployed based on signal severity to pre-empt slippages and initiate recovery action.

Specialised Monitoring and Oversight for Large Accounts

For large-value exposures exceeding Rs250 crore, Central Bank of India appoints Agencies for Specialised Monitoring (ASMs) to undertake real-time transactional surveillance. This continuous oversight provides an additional layer of discipline and transparency for high-risk accounts. Meanwhile, accounts up to Rs1 crore are monitored through a dedicated War Room at the Central Office, while those above Rs1 crore are tracked by the Credit Monitoring Department. These focused monitoring cells enable responsive follow-up and quicker course correction, especially in SMA cases.

Digitalisation of Credit Processing and Collections

To facilitate end-to-end process efficiency, the Bank operationalised Credit Processing and Approval Centres (CPACs) across regional offices. Functioning since 2021, CPACs act as single-point verification hubs, managing all pre-disbursal checks including documentation, appraisal validation, and collateral perfection. These centres offer centralised decision support and help maintain process consistency at the branch level.

On the collections front, the Bank has deployed an Advanced Collection Management System (ACMS) designed to drive timely recoveries and mitigate slippages. The platform integrates:

• Collection Call Centres

• Feet on Street (FOS) model

• Real-time analytics and segmentation (categorising accounts into low, medium, and high-risk groups)

• Multichannel follow-up including IVR, SMS, chatbot, agent calls, and field visits

FOS agents are tracked through a purpose-built FOS App, ensuring accountability and efficiency. Two national collection centres manage both SMA and NPA portfolios, allowing systematic follow-up and resolution tracking.

Further, the Digital Collections Platform streamlines repayment workflows through a unified interface comprising:

• Automated reminders and IVR systems

• UPI-integrated payment gateways

• Real-time dashboard analytics for exception monitoring

Customer-Centric Credit Support and Feedback Integration

Customer experience in credit services has been enhanced through the Integrated Customer Care (ICC) platform, which supports complaint resolution, loan servicing, and lead conversion. Integrated with the CRM system, the ICC enables multichannel complaint routing, proactive status notifications, and internal escalation management. This ensures that borrower concerns—especially in the retail and business loan segments—are addressed with defined turnaround times and accountability.

Policy Framework and Governance

In addition to its Credit Risk Policy, the Bank operates under a suite of board-approved frameworks that support end-to- end credit governance. These include:

• Credit Risk Mitigation and Collateral Management Policy

• Intra Group Transactions and Exposure Policy

• Credit Review Policy

• Credit Rating Policy

• Model Validation Policy

Oversight is further strengthened through specialised committees:

• The Committee of the Board for Monitoring Recovery reviews SMA and NPA accounts quarterly, devises resolution strategies, and tracks progress on recoveries.

• The Special Committee for Monitoring Large Value Frauds focuses on systemic issues, detection timelines, recovery mechanisms, and staff accountability.

Priority Sector Lending

In alignment with the Reserve Bank of IndiaRss directive to allocate at least 40% of Adjusted Net Bank Credit (ANBC) or an equivalent credit amount from off-balance sheet exposures, whichever is higher to priority sector activities,

A summary of segment-wise performance is outlined below:

Central Bank of India reaffirmed its commitment to inclusive growth and financial outreach in FY2024 - 25. The Bank significantly exceeded this regulatory threshold, with Priority Sector Advances accounting for 50.17% of its ANBC as at 31 March 2025. This performance reflects the BankRss strategic orientation towards serving critical segments of the economy and contributing to national development goals.

Credit Performance in Priority Sectors

Total Priority Sector Advances reached Rs1,34,646.12 crore as at 31 March 2025, representing a year-on-year growth of 13.97%, or Rs16,510 crore, over the previous year. This expansion was driven by a focused approach to deepening credit penetration across key categories such as agriculture, MSMEs, and affordable housing, while maintaining compliance with prescribed sectoral targets.

Agriculture Credit rose to Rs52,456.39 crore, an increase of Rs6,393 crore over FY2024, achieving 18.05% of ANBC and surpassing the regulatory sub-target of 18%. Similarly, MSME lending witnessed a strong year-on-year growth of 18.79%, with total advances rising to Rs59,243 crore.

Education loans grew modestly by 8.81%, while housing loans up to Rs25 lakh rose by 2.90%, reaching Rs20,673.49 crore. Some contraction was observed in smaller sub-categories such as Renewable Energy, Social Infrastructure, and Export Credit, reflecting cyclical trends and portfolio rebalancing.

Segment	FY2024 (Rs Cr)	FY2025 (Rs Cr)	Growth (%)
Priority Sector Advances	1,18,135.91	1,34,646.12	13.97%
Agriculture	46,063.46	52,456.39	13.88%
MSME	49,870.32	59,242.97	18.79%
Education	2,057.03	2,238.30	8.81%
Housing (up to Rs25 lakh)	20,090.44	20,673.49	2.90%
Other Priority Sectors	1.21	0.82	-32.23%
Renewable Energy	0.99	0.85	-14.14%
Social Infrastructure	41.96	24.25	-42.21%
Export Credit	10.49	9.05	-13.73%

Strategic Use of PSLCs and RIDF Allocation

To optimise regulatory capital and benefit from overachievement in certain categories, the Bank actively participated in the Priority Sector Lending Certificate (PSLC) market. In FY2025, PSLCs totalling Rs7,000 crore were sold, comprising Rs6,000 crore under agriculture and Rs1,000 crore under the small and marginal farmers sub-category.

Further, the Bank maintained a presence in the Rural Infrastructure Development Fund (RIDF). As of 31 March 2025, the outstanding RIDF exposure stood at Rs990.72 crore, of which Rs826.37 crore was earmarked towards agriculture infrastructure. These initiatives support rural development and enable the Bank to meet shortfalls in sub-targets through eligible investments.

Contribution of Co-Lending Partnerships

The BankRss co-lending model, operationalised in collaboration with NBFCs and HFCs, significantly contributed to credit delivery in priority sectors. During FY2025, co-lending sanctions amounted to:

• MSME: Rs3,560.34 crore

• Retail: Rs2,704.21 crore

• Agriculture: Rs1,390.97 crore

• Corporate: Rs889.12 crore

Total sanctions under co-lending during the year reached Rs8,544.64 crore, with an outstanding portfolio of Rs14,285.08 crore as at 31 March 2025. This collaborative model has proven instrumental in enhancing credit access to traditionally underserved borrowers, particularly in Tier 2 - 4 locations.

“Central Bank of IndiaRss continued emphasis on Priority Sector Lending, reflected in its consistent outperformance of regulatory benchmarks, illustrates its broader commitment to national economic priorities. By deepening financial inclusion and supporting employment-intensive sectors such as agriculture and MSMEs, the Bank has positioned itself as a key enabler of inclusive and sustainable development.”

Agriculture Sector

Central Bank of India continues to place the agricultural sector at the heart of its inclusive development strategy, recognising its vital role in sustaining livelihoods, ensuring food security, and contributing to IndiaRss economic resilience. In FY2024 - 25, the Bank deepened its outreach to the

farming community through tailored financial products, proactive credit deployment, and targeted support for agriallied activities and infrastructure.

Strong Growth in Agriculture Advances

As of 31 March 2025, the BankRss total Agriculture and Allied Advances stood at Rs52,456.39 crore, marking a robust 13.88% year-on-year growth over Rs46,063.46 crore recorded at the end of FY2024. Notably, the agriculture credit-to-Adjusted Net Bank Credit (ANBC) ratio reached 18.05%, marginally exceeding the regulatory requirement of 18%. This performance reaffirms the BankRss commitment to meeting regulatory mandates while fulfilling the credit needs of IndiaRss agrarian economy.

Diverse and Inclusive Agri-Finance Offerings

The Bank offers a comprehensive suite of agricultural finance products tailored to the varied needs of farmers, agripreneurs, and rural enterprises. These include:

• Cent Kisan Credit Card (KCC) - for crop production, post-harvest expenses, and working capital.

• Cent Agri Gold Loan - rapid credit access against gold for crop and capital needs.

• Cent Poly House / Green House Scheme - for

protected cultivation of horticulture crops.

• Cent AMI Scheme - to build marketing and storage infrastructure.

• Cent Dairy, Poultry, Fishery & Animal Husbandry Infra - to finance allied activities and promote rural entrepreneurship.

• Cent SHG Bank Linkage & DAY-NRLM - empowering women-led Self-Help Groups with term and revolving credit.

• Cent Farm Machinery & Cent Agri Infra - for

mechanisation and post-harvest investment.

• Cent Solar (under PM-KUSUM) - for decentralised, renewable power solutions.

• Cent Goatery, Mushroom, and Naari Shakti -

promoting alternative income sources and supporting underrepresented groups.

• Cent FPO, FIDF, PMFME, and Cold Storage Schemes

- for promoting collectives, processing units, and rural agri-logistics.

These schemes reflect the BankRss holistic approach to agricultural financing, spanning crop loans, capital investment, infrastructure creation, and climate-resilient agriculture.

FY2025 Performance Highlights and Initiatives

The Bank undertook several focused initiatives in FY2025 to augment credit flows and support inclusive growth in the agriculture sector:

• Credit Campaigns and Outreach: Rural and semiurban branches organised monthly credit camps and village-level awareness drives, promoting SHG financing and expanding access to government schemes such as Pradhan Mantri Fasal Bima Yojana (PMFBY).

• Co-Lending Partnerships: The Bank leveraged the co-lending framework to serve underpenetrated agrimarkets, sanctioning Rs1,390.97 crore under agriculture through NBFC/HFC partnerships. As of 31 March 2025, the outstanding co-lending portfolio in agriculture stood at Rs619.18 crore.

• Priority Sector Lending Certificates (PSLCs): To optimise regulatory benefits from surplus lending, the Bank executed PSLC sales of Rs7,000 crore, of which Rs6,000 crore pertained to agriculture and Rs1,000 crore to small and marginal farmers.

• Rural Infrastructure Development Fund (RIDF): As of 31 March 2025, the Bank held an outstanding RIDF allocation of Rs990.72 crore, including Rs826.37 crore towards agriculture infrastructure, reinforcing its role in rural capital formation.

• Digital Innovations for Agri-Inclusion: The Bank piloted digital agri-loan products, including emergency crop finance, and introduced online journeys under key schemes to enhance accessibility for remote and underserved borrowers.

• Focus on Climate-Smart Agriculture: Through schemes like Cent Poly House, the Bank promoted sustainable farming practices, offering financing for high- value horticulture cultivation in protected environments.

“Central Bank of IndiaRss performance in FY2025 highlights its proactive stance on advancing rural credit, meeting priority sector targets, and enabling sustainable agricultural transformation. By combining product innovation, digital enablement, and institutional partnerships, the Bank is well- positioned to scale its impact in IndiaRss agricultural and rural economy.”

Enhancing Financial Inclusion

Central Bank of India remains steadfast in its commitment to advancing financial inclusion as a cornerstone of its institutional strategy. For the Bank, financial inclusion is not merely a regulatory mandate—it is a vehicle for social equity, economic empowerment, and sustainable development. In FY2024 - 25, the Bank deepened its outreach to underserved communities through targeted schemes, strategic partnerships, and digital enablement, directly contributing to Sustainable Development Goals (SDGs) such as SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Strengthening Agricultural Inclusion

Recognising the centrality of agriculture in IndiaRss socioeconomic fabric, the Bank has prioritised timely and adequate credit flow to farmers and allied activities. In FY2025, total Agriculture and Allied Advances grew by 13.88%, reaching Rs52,456.39 crore. The agriculture credit-to-ANBC ratio stood at 18.05%, marginally surpassing the regulatory target of 18%.

The BankRss extensive portfolio of sector-specific schemes supports a range of farming and agri-business needs. Flagship offerings include:

• Cent Kisan Credit Card (KCC) for crop cultivation and post-harvest financing.

• Cent Agri Gold Loan for quick access to liquidity.

• Cent Poly House Scheme for protected horticulture cultivation.

• Cent Dairy, Cent Fishery, and Cent Farm Machinery to promote diversification and mechanisation.

• Cent FPO, Cent PMFME, and Cent Cold Storage to strengthen agri-infrastructure and processing value chains.

• Cent Solar (PM-KUSUM) and Cent Agri Infra to promote climate-smart agriculture.

To enhance last-mile delivery, the Bank conducted monthly credit camps in rural and semi-urban branches and organised weekly village-level awareness drives. Special camps for Self-Help Groups (SHGs) were held to promote formal credit linkage under schemes such as DAY-NRLM and Cent SHG Bank Linkage. The Bank also ensured inclusion under Pradhan Mantri Fasal Bima Yojana (PMFBY), offering risk mitigation to small and marginal farmers.

Inclusive MSME Financing

Beyond agriculture, the BankRss financial inclusion agenda strongly supports Micro, Small, and Medium Enterprises (MSMEs), which serve as engines of employment and local economic growth. In FY2025, the Bank expanded its inclusive offerings with the launch of:

• Cent MSE GIFT (Green Investment and Financing for Transformation), and

• Cent MSE SPICE (Promotion and Investment in Circular Economy).

The Bank also supported entrepreneurial initiatives through the Prime MinisterRss Employment Generation Programme (PMEGP), which recorded significant disbursement growth in FY2024 and remains a key priority going forward. A suite of new schemes tailored to labour-intensive sectors—such as Startups, Toy Manufacturing, and Leather—are planned for FY2025 - 26 to broaden the BankRss financial reach.

Reaching the Unbanked Through Partnerships and Infrastructure

In FY2025, Central Bank of India leveraged co-lending partnerships with NBFCs and HFCs to enhance its footprint across priority sectors. Co-lending sanctions in the agriculture sector alone stood at Rs1,390.97 crore, with an outstanding portfolio of Rs619.18 crore.

To optimise priority sector targets, the Bank utilised Priority Sector Lending Certificates (PSLCs), selling Rs7,000 crore in FY2025—Rs6,000 crore for agriculture and Rs1,000 crore for small and marginal farmers. Additionally, the Bank held Rs826.37 crore under the Rural Infrastructure Development Fund (RIDF) for agricultural infrastructure, further reinforcing rural credit delivery.

Banking services were significantly extended across geographies, with 16,795 villages covered and 11,682 Business Correspondent (BC) agents deployed nationwide. In urban areas, 1,242 Financial Inclusion Centres were operational, ensuring equitable access to banking services across both rural and urban landscapes.

Technology-Led Inclusion

Technology remains a pivotal enabler of the BankRss inclusion strategy. FY2025 saw the rollout of emergency agri-loans through digital channels, enabling timely and flexible access to funds. Though explicit metrics on digital financial literacy were not available, the BankRss increasing digital outreach implies continued onboarding of customers onto digital platforms, enhancing self-service capabilities and financial awareness.

Social Security and Vulnerable Segment Support

The Bank expanded its outreach to socially vulnerable groups through schemes like Cent Naari Shakti (for women SHG members), Cent Kisan Sathi (for debt relief from informal lenders), and Cent Scheduled Tribe (targeting weaker sections). These offerings reinforce the BankRss alignment with national objectives of social inclusion and targeted welfare.

Enrolment under government-backed social security schemes also grew significantly in FY2025:

• PMJJBY: 6.61% growth (to 27.49 lakh enrolees)

• PMSBY: 10.78% growth (to 104.46 lakh enrolees)

• Atal Pension Yojana: 13.85% growth (to 26.43 lakh enrolees)

The Bank demonstrated strong claims servicing under these schemes, settling 15,672 of 19,217 death claims under PMJJBY and 6,036 of 7,639 under PMSBY, reflecting its commitment to timely financial support.

Performance Under PMJDY and BC Model

The BankRss performance under the Pradhan Mantri Jan Dhan Yojana (PMJDY) continued to strengthen. Business conducted through BCs rose 16.09% to Rs5,979.73 crore, while financial inclusion transactions via BC accounts surged 13.50% to Rs9,208.52 crore. The total number of accounts opened through BCs increased 6.02% to 189.61 lakh, reinforcing the modelRss effectiveness in onboarding the unbanked.

Aadhaar seeding under PMJDY accounts also improved— rising to 90.67% for all accounts and 97.47% for operative accounts—facilitating seamless transfers and enhancing identification accuracy.

Human Capital and Organisational Inclusion

The Bank also promoted inclusion within its own workforce. More than 17% of total staff were appointed as apprentices under the National Apprenticeship Promotion Scheme (NAPS), contributing to skill development and youth employability. Retired personnel were engaged as consultants, bringing experience and continuity to service delivery and financial literacy efforts. Health checkups and welfare programmes further reinforced the BankRss internal inclusion agenda.

“Through an integrated approach combining physical outreach, customised product development, partnerships, and digital delivery, Central Bank of India has established itself as a leading contributor to IndiaRss financial inclusion landscape. The BankRss efforts in FY2025 represent a deepening of this mission, with continued focus on rural credit, MSMEs, women, and vulnerable communities. These efforts not only fulfil regulatory obligations but also create long-term value by enabling broader participation in the formal financial ecosystem.”

Financial Literacy and Credit Counselling Centre (FLCC)

For the fiscal year 2024-25, Central Bank of India continued to place significant emphasis on enhancing financial inclusion through dedicated outreach initiatives, prominently featuring its Financial Literacy and Credit Counselling Centres (FLCCs). These centres are pivotal components of the BankRss strategy to bring financial education and guidance to the unserved and underserved segments of the population. Their primary objective is to empower individuals by providing comprehensive financial education, helping them make informed financial decisions, and enhancing their understanding of available financial products and services. As reported for the period 202425, Central Bank of India has established 52 FLCCs across seven states: Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Rajasthan, and Chhattisgarh. Additionally, four FLCCs have been set up at the block level in Kerala. The Bank also operates 178 Community Financial Literacy Centres (CFLs) strategically placed across these states, with the distribution as follows: West Bengal (12), Madhya Pradesh (49), Uttar Pradesh (21), Rajasthan (7), Bihar (61), Chhattisgarh (14) and Maharashtra (14). These centres are crucial platforms for educating a broad spectrum of individuals and are utilized for conducting mass campaigns and community meetings.

The functioning and activities of the FLCCs, along with Rural Self Employment Training Institutes (RSETIs) and CFLs, are overseen by a dedicated society/trust named “Central Bank of India Samajik Utthan Avam Prashikshan Sansthan” (CBI- SUAPS). An apex-level Governing Council provides overall guidance and supervision to ensure effective management and coordination of these institutions. The Bank actively engages various resources, including the valuable contributions of retired personnel as consultants. This initiative allows the Bank to leverage their extensive experience and knowledge, benefiting customers through enriched advisory capabilities,

aligning with the BankRss broader inclusion and experiencesharing strategy. These efforts are specifically aimed at reaching individuals and small businesses in underserved areas and fostering financial literacy and skills development in rural and semi-urban communities. The impact of these programs includes equipping individuals with knowledge for effective financial management and enhancing their economic well-being.

Empowering Rural Youth Through RSETIs

As part of its enduring commitment to financial inclusion and skill development, Central Bank of India continued to strengthen its Rural Self Employment Training Institutes (RSETIs) during the fiscal year 2024 - 25. These institutes form a cornerstone of the BankRss broader strategy to empower unemployed youth in rural and semi-urban areas by equipping them with practical skills and entrepreneurial capabilities necessary for self-employment or gainful wage employment. The RSETIs are designed not only to build competencies but also to foster self-reliance and sustainable livelihoods within the communities they serve.

The Bank operates 47 RSETIs strategically located across nine Indian states— viz. Madhya Pradesh (18), Bihar (9), Maharashtra (6), Uttar Pradesh (5), West Bengal (3), Chhattisgarh (3), Rajasthan (1), Odissa (1) and Assam (1). These centres deliver structured training programmes targeted at economically disadvantaged groups, with an emphasis on practical skill-building, entrepreneurship, and financial awareness. The management of RSETIs, along with Financial Literacy and Credit Counselling Centres (FLCCs) and Centres for Financial Literacy (CFLs), is overseen by the BankRss dedicated not-for-profit trust, the Central Bank of India Samajik Utthan Avam Prashikshan Sansthan (CBI-SUAPS).

In FY2024 - 25, the RSETIs conducted 1473 training programmes and imparted training to 45317 candidates. Out of which, 32992 (i.e. 72.80%) trainees were settled. Credit linkage of settled candidates achieved is 18687 i.e. 56.64% .

“By nurturing entrepreneurship and financial independence at the grassroots level, RSETIs continue to serve as critical enablers of inclusive development. Central Bank of IndiaRss sustained commitment to these institutes reflects its belief in the transformative power of capacity building and its alignment with national priorities focused on employment generation, rural upliftment, and inclusive economic growth.”

Social Banking and Government- Sponsored Schemes

Central Bank of India continues to play an essential role in fostering inclusive and sustainable economic growth by delivering financial support to a broad cross-section of society through a range of government-sponsored schemes. These initiatives are integral to the BankRss strategic agenda to deepen financial inclusion, promote entrepreneurship, and empower underserved communities. Aligned with national priorities and the Sustainable Development Goals— particularly SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities)— the BankRss outreach is designed to bridge socio-economic disparities and catalyse community-level development.

In FY2024 - 25, the Bank demonstrated strong operational momentum in driving social impact through targeted financial instruments. A notable achievement was recorded under the PM SVANidhi Scheme, aimed at supporting urban street vendors in restoring their livelihoods. The number of accounts surged from 3,09,582 to 3,48,472, representing an impressive growth of 112.56%, underscoring the BankRss agility in addressing the needs of a vulnerable segment.

The Stand-Up India Scheme, which facilitates bank financing for Scheduled Caste (SC), Scheduled Tribe (ST), and women entrepreneurs to launch greenfield enterprises, saw equally remarkable progress. The number of accounts increased from 13,311 to 17,865, marking a growth of 134.42%. By proactively enabling access to formal finance, the Bank is directly contributing to inclusive entrepreneurship and economic empowerment at the grassroots level.

Further strengthening its support for the micro and small business ecosystem, the Bank delivered robust performance under the Pradhan Mantri MUDRA Yojana (PMMY). The disbursement under PMMY has grown from Rs7850.51 crore to Rs9505.27 crore, reflecting a growth of 121.07 %. This funding continues to be a critical enabler for non-corporate enterprises operating across manufacturing, services, and trade sectors, particularly in Tier II and III locations.

The PM Formalisation of Micro Food Processing Enterprises (PM FME) Scheme, administered by the Ministry of Food Processing Industries, also recorded commendable traction. The number of accounts doubled from 3082 to 6,132, marking a growth of 176.11%. This initiative plays a key role in formalising and scaling micro food processors, contributing to rural employment and value chain integration.

Another key initiative, the Prime MinisterRss Employment Generation Programme (PMEGP), designed to promote selfemployment through micro-enterprises, saw disbursements rise sharply from Rs1,825.98 crore to Rs2,467.79 crore, a growth of 135.14%. This strong performance illustrates the BankRss commitment to supporting greenfield projects and promoting youth entrepreneurship, particularly in economically weaker regions.

Taken together, these outcomes reflect the BankRss deep-rooted commitment to social banking and inclusive development. Through its expansive network of 4,545 branches and a well- integrated Business Correspondent model, the Bank ensures last-mile delivery of financial products to rural, semi-urban, and unbanked areas. These efforts are further supported by its Financial Literacy and Credit Counselling Centres (FLCCs) and Rural Self Employment Training Institutes (RSETIs), which provide essential training, awareness, and handholding support to individuals aspiring to become financially self-reliant.

The BankRss digital transformation initiatives have also complemented its social agenda. Technology-led simplifications—such as digital loan renewals for MSMEs and streamlined credit approval processes—have enhanced access to finance and improved turnaround times for small borrowers. These improvements contribute meaningfully to the BankRss goal of creating a more enabling ecosystem for micro and small enterprises.

Looking ahead, Central Bank of India remains firmly committed to expanding the reach and effectiveness of its social banking initiatives. It will continue to partner with government agencies, leverage technology, and develop targeted schemes that respond to the evolving needs of its diverse customer base. The results achieved in FY2025 serve as a testament to the BankRss role as a trusted enabler of financial inclusion and a steadfast partner in IndiaRss inclusive development journey.

Lead Bank Performance

As a responsible public sector institution, Central Bank of India continued to fulfil its pivotal role as a Lead Bank in FY2024 - 25, furthering inclusive development and deepening financial access in some of the most critical regions of the country. The Bank served as Lead Bank in 53 districts across eight states—Madhya Pradesh, Bihar, Maharashtra, Uttar Pradesh, West Bengal, Rajasthan, Chhattisgarh, and Sikkim. These districts collectively accounted for approximately 25% of the BankRss branch network, underscoring the scale

and strategic importance of its leadership role in these geographies.

To ensure effective implementation of the Lead Bank Scheme, the Bank invested in strengthening the operational infrastructure of its Lead District Manager (LDM) offices. During the year, all LDM offices were equipped with dedicated premises, trained staff, and essential logistics and IT infrastructure—including vehicles, computers, printers, telecommunication systems, internet connectivity, and official email IDs. These measures enabled efficient coordination with district authorities and other stakeholders to drive region-specific development agendas.

The Bank also undertook targeted financial awareness initiatives, particularly in rural districts, to improve public understanding and adoption of its financial products. Promotional materials on vehicles assigned to Lead District Managers were used to publicise key offerings such as the Kisan Credit Card and Central Artisan Credit Card, increasing visibility and outreach among farmers, artisans, and rural entrepreneurs.

In addition to promotional outreach, the Bank demonstrated its developmental commitment through the implementation of Financial Literacy and Inclusion Programmes across Lead Bank districts. These initiatives focused on educating communities about the importance of savings, credit discipline, digital banking, and responsible financial behaviour. The Bank also actively supported the formation and nurturing of Self-Help Groups (SHGs) and farmersRs groups, fostering collective empowerment, and enabling access to formal credit for small borrowers and community- based organisations.

Looking ahead, the Bank remains committed to further strengthening its Lead Bank responsibilities, expanding outreach in unbanked areas, and supporting the socioeconomic aspirations of communities through targeted interventions and inclusive financial solutions.

MSME Department Performance Highlights

In FY2025, Central Bank of India continued to strengthen its commitment to the Micro, Small, and Medium Enterprises (MSME) sector—recognised as a cornerstone of IndiaRss economic resilience and employment generation. As of March 31,2025, the BankRss total outstanding advances to the MSME sector stood at Rs59,243 crore, up from Rs49,870 crore in the previous year, reflecting a year-on-year growth of 18.79%.

Breakdown of performance by segment:

• Micro Enterprises: Grew by 22.49%, from Rs28,863 crore to Rs35,354 crore..

• Small Enterprises: Rose by 9.98%, reaching Rs17,496 crore from Rs15,908 crore.

• MSE (Micro + Small): Combined advances stood at Rs52,850 crore, up 18.05% from Rs44,771 crore.

• Medium Enterprises: Saw strong growth of 25.38%,

increasing to Rs6,393 crore from Rs5,099 crore.

As a share of gross advances, MSME loans represented 20.42% as of March 31,2025.

MSME Performance Metrics

The BankRss robust performance in FY2025 highlights its growing role in MSME development:

• Total MSME Advances: Rs59,243 crore (+18.79% YoY)

• Micro Enterprises: Rs35,354 crore (+22.49%)

• Small Enterprises: Rs17,496 crore (+9.98%)

• Medium Enterprises: Rs6,393 crore (+25.38%)

• MSE Portfolio: Rs52,850 crore (+18.05%)

• Contribution to Gross Advances: 20.42%

These metrics, combined with the growth in account numbers and strong digital and co-lending momentum, reflect the BankRss strategic commitment to MSMEs as engines of sustainable, inclusive economic growth.

Additionally, the BankRss performance on the Trade Receivables Discounting System (TReDS) platform was exemplary. Outstanding receivables reached Rs3,047.40 crore (growth of 51.05%), with 33 new corporates onboarded and existing exposure enhanced by Rs625 crore. The Bank earned Rs167.64 crore in interest through this channel during FY2025.

Under co-lending partnerships, MSME-specific sanctions totalled Rs3,560.34 crore, with outstanding balances of Rs6,732.31 crore as of March 31, 2025, further expanding reach into priority segments.

To enhance the ease of doing business for MSMEs, the Bank implemented the Digi Auto Renewal scheme for MSME loans up to 10.00 lakh, resulting in the digital renewal of 20,042 accounts amounting to Rs942.11 crore.

Key Initiatives

To address the evolving needs of the MSME ecosystem, the Bank launched a series of initiatives in FY2025 focused on product innovation, digital delivery, and sector-specific support:

• Launched Supply Chain Finance (SCF) during FY 2024-25

• Central Bank of India has been awarded as the Best MSME Bank (PSU) Winner and Best Technology Enablers Runner up at 11th MSME Excellence award organised by ASSOCHAM at New Delhi

• Central Bank of India Received the Best Banker Award in the MSME & Retail Banking Category at the BFSI Conclave organized by the Nava Bharat Group.

• Signed a Memorandum of Understanding (MoU) with PSB Alliance Pvt. Ltd. For Digital Supply Chain Finance (SCF) on 27.03.2025.

• MoU executed with M/s TATA MOTERS PASSANGER VEHICLE LTD. (TMPVL) under supply chain finance

• Launched New Scheme under Cent MSE Green Investment and financing for transformation (MSE GIFT)

• Lunched New Scheme under Cent MSE SPICE Scheme for promotion and Investment in Circular Economy.

Bringing MSME Products On DLP (Digital Lending Platform):

• Cent Mudra Scheme (2) Cent Saral Scheme (3) Cent Business Scheme made is live on the Digital Lending Platform (DLP) Cent GST Loan Scheme is expected to go live on DLP by the end of April 2025.

• Additional Flagship Schemes like Cent Shop, Cent Hotel and Cent Vehicle Business will be onboarded under DLP shortly. Processing under LLMS in above schemes will be discontinued.

• Tracking our existing customers who may be exploring new credit opportunities is already monitored through lead Management Systems. that enables proactive engagement & cross-selling to our customers.

Future Roadmap

Looking ahead, the Bank aims to: ^•

• Introduce tailormade MSME Schemes Startups, Toy Manufacturing, Leather & Labour-Intensive Industries

to foster sector-specific growth, In line with the Union Budget 2025-26.

• Meeting with different associations like Hotel Association of India, JIO (Jain International Organization), Textile Association CERAMIC etc. will be organized for new business opportunity under our flagship schemes.

• Takeover of quality accounts from other banks and bringing back our old clients under CENT CONNECT Program will be encouraged.

• Target Under Supply Chain Finance (SCF) For FY 202526 - Rs3000 Crores and Focus will be made on Dealers & Vendors Financing, through our robust SCF platform through our Sourcing Partners for scaling new business.

• More and more thrust will be given to MSME Cluster and Clusters Specific Schemes will be designed to boost MSME advances.

• TATA Motors Electric Vehicles Ltd, BATA India Ltd., Bharat Aluminium Company Ltd. (BALCO), Vedanta Limited, IFB Industries Ltd are already in pipeline for onboarding as anchor under Supply Chain Finance.

Active MSME Products

As of FY2025, Central Bank of India offered a comprehensivesuite of over 40 MSME-specific products, addressing a range of financing needs including:

• Working capital (e.g., Cent Business, Cent Business Gold Loan)

• Sector-specific loans (e.g., Cent Hotel, Cent Sanjeevani, Cent Ceramic, Cent Textile, Cent Equipment Finance)

• Inclusive finance (e.g., PMMY, Stand Up India, PMEGP, Cent Kalyani, Cent SHG Linkage)

• Green and modern enterprise support (e.g., Cent Energy Efficiency, Cent GST, Cent Export, Cent CA/CS/ CMA, Cent SPICE & Cent GIFT)

Discontinued Products

As part of its portfolio rationalisation strategy, the following

MSME products were discontinued during the period:

• Cent CGECL

• Cent Custom Hiring Centre (M.P)

• Loan Guarantee Scheme for COVID-Affected Sectors

• Central Laghu Udhyami Credit Card

• Loan Guarantee Scheme for COVID-Affected Tourism Service Sector

Retail Credit

Retail lending continues to be a cornerstone of the Central Bank of IndiaRss credit portfolio, contributing meaningfully to both the BankRss asset diversification and the broader economic ecosystem through enhanced consumer spending. As of March 31,2025, the BankRss Retail Credit portfolio stood at Rs82,383 crore, up from Rs71,193 crore in the previous fiscal, registering a robust 15.72% year-on-year (Y-o-Y) growth. Retail loans accounted for 28.40% of the BankRss total advances, slightly up from 28.28% in FY2024, reaffirming the segmentRss strategic importance and steady momentum.

WeRsve leveraged Account Aggregator platforms for lead generation, strengthened intermediary relationships, and harnessed digital ecosystems to drive retail loan expansion. Strategic partnerships with OEMs and targeted festive promotions have also fuelled growth. During FY 2023-24, the Bank has sanctioned loans to 260,226 retail accounts totaling Rs20,151 crore, increasing to 294,589 accounts and Rs24,553 crore during the FY 2024-25, Reflecting our commitment to growth and customer-centricity.

This robust performance highlights retail lending as a key contributor to Central Bank of IndiaRss loan book. During the fiscal year, the BankRss strategic initiatives, including data mining for cross-sell and upsell opportunities and partnerships with OEM vehicle manufacturers for vehicle loans, played a crucial role in this growth.

Key Segments of Retail Lending

The BankRss retail portfolio remains well-diversified across core segments, each demonstrating stable growth and contribution: ^•

• Housing Loans stood at Rs52,164 crore, comprising 63.32% of the retail portfolio, with a Y-o-Y growth of 18.40%. This remains the dominant segment, reflecting continued demand for home ownership.

• Education Loans reached Rs5,408 crore, up 26.24% Y-o-Y, and accounted for 6.56% of the retail loan book, underscoring the BankRss role in supporting aspirational youth.

• Auto Loans totalled Rs3,998 crore, contributing 4.85% to the retail portfolio, with a Y-o-Y growth of 19.59%, supported by OEM partnerships and festive campaigns.

• Personal Loans were at Rs4,543 crore, comprising 5.51%, with marginal growth of 0.64%, reflecting selective underwriting to manage risk.

• Other Retail Loans, including consumer durables, lifestyle, and small-ticket financing, amounted to Rs16,270 crore, representing 19.76% of the portfolio, growing 8.50% Y-o-Y.

Technological Advancements

Technology has been a key enabler in driving retail lending efficiencies and customer experience. The Bank continued to invest in digital infrastructure, leveraging end-to-end digital loan sanctioning, AI, machine learning, and data mining to enhance customer acquisition, cross-sell, and up-sell capabilities.

FY2025 saw the rollout of digital initiatives focused on enriching the CentPay ecosystem. Planned enhancements included:

• Hello UPI, UPI Global, and Virtual Wallet functionalities.

• Integrated credit score checks, and marketplace features within mobile banking.

• The development of an Omni-Channel Platform to ensure consistent engagement across devices.

• Planned expansion of the ATM network by 600+ units, improving rural and semi-urban access.

While outcomes of these initiatives were not fully documented in FY2025, they signal a strong trajectory towards deeper digital integration in retail lending.

Strategic Initiatives

The BankRss retail growth strategy remained anchored in customer-centric innovation, digital transformation, and strategic partnerships. Key actions included:

• Use of the Account Aggregator framework for lead generation.

• Data-driven targeting for cross-sell/upsell opportunities.

• Alliances with OEMs such as Tata Motors and Maruti Suzuki.

• Tie-ups with top-tier builders and government/ institutional entities for payroll-linked lending.

• Periodic festival campaigns to boost seasonal demand.

These initiatives enhanced both the depth and quality of the BankRss retail portfolio.

Future Outlook

With retail credit firmly established as a growth driver, the Bank is well-positioned to capitalise on emerging opportunities. For FY2025 - 26, it has set an overall advances growth guidance of 14 - 16%, with the retail segment expected to play a pivotal role in achieving this target. Continued digital expansion, strengthened partnerships, and focused customer engagement strategies will be central to sustaining momentum and delivering long-term value.

Customer Care

In FY2024 - 25, Central Bank of India reaffirmed its commitment to delivering superior customer service, recognising it as a strategic imperative and a key pillar of sustainable growth. The BankRss approach centred on the theme "Customer Satisfaction with Value Creation", reflecting a pledge to uphold ethical conduct, ensure fairness in business practices, and place customer needs at the core of operations. As part of this transformation, the Planning, Development & Operations Department was restructured and renamed the Customer Care Department, underscoring a renewed institutional focus on customer experience.

Integrated Customer Care (ICC) Platform

A major milestone in FY2024 was the launch of the Integrated Customer Care (ICC) platform—a centralised, scalable model designed to modernise the BankRss service architecture. Operational from Mumbai (since 05.02.2024)and Hyderabad (since 30.03.2024), the ICC employs over 270 professionals and is seamlessly integrated into the BankRss Data Centre (DC) and Disaster Recovery (DR) infrastructure.

The ICC handles a broad spectrum of services across deposits, loans, payments, and third-party products (insurance and mutual funds). It also manages service requests, Net and Mobile Banking support, campaign outreach, lead generation, and grievance redressal. A universal, easy-to-remember toll-free number (1800 30 30) supports a multi-channel engagement framework—covering voice, IVR, chatbot, WhatsApp live chat, email/web forms, video banking, and co-browsing.

Customer-Centric Expansion and Infrastructure

The Bank continued to strengthen its physical and digital footprint. As of March 31, 2025, the branch network

expanded to 4,545 branches (up from 4,500), comprising 1,616 rural, 1,348 semi-urban, 774 urban, and 807 metro branches. The ATM network also increased marginally to 4,085 terminals.

Branch Expansion

In FY2024 - 25, Central Bank of India advanced its agenda of strategic branch expansion and optimisation as part of its broader commitment to enhancing customer reach, improving service delivery, and deepening financial inclusion. This strategic initiative was underpinned by a data-driven approach that prioritised branch openings in regions with high business potential and customer demand, while also undertaking selective consolidation through branch mergers or closures to optimise operational efficiency.

As of March 31,2025, the BankRss branch distribution across different geographical categories is as follows:

No.	Category	Branches as on 31.03.2024	Branches as on 31.03.2025
1	Rural	1,606	1,616
2	Semi-Urban	1,332	1,348
3	Urban	771	774
4	Metro	791	807
	Total	4,500	4,545

Some records, including Key Performance Indicators, cite the total branch count at 4,545 as of March 31, 2025. Regardless of the final count, the expansion confirms the BankRss continued emphasis on physical presence as a channel for service delivery, particularly in rural and semiurban India. These two segments together account for over 65% of the BankRss branch network, reinforcing its strategic focus on regional penetration and grassroots outreach.

While this growth enhances customer accessibility and supports inclusive banking, it also leads to higher operating expenses, particularly in categories such as rent and utility costs. Nevertheless, the Bank remains committed to balancing network expansion with operational efficiency, ensuring that each new or retained branch contributes meaningfully to customer service and business development objectives.

Digital Enablement and Technological Initiatives

Technology was integral to improving customer interaction and service delivery. Key digital developments included:

• Enhanced UPI functionalities within the CentPay application: Hello UPI, UPI Global, Virtual Wallet, Marketplace, and Credit Score integration.

• Rollout of an Omni-Channel Platform for unified customer experience across devices.

• Expansion of video KYC and periodic KYC updates via digital channels.

• Introduction of self-service tools for mobile number/ KYC updates, Form 16 and interest certificate downloads, and service deregistration.

Tailored digital solutions for MSMEs and corporates are under development. Daily average mobile transactions reached 0.49 lakh, growing by 6.52% year-on-year, indicating rising digital adoption.

Grievance Redressal and Customer Feedback

The Bank enhanced its grievance redressal framework via the ICC. A structured Complaint Management System ensures time-bound resolution with well-defined turnaround times (TATs). In FY2025, the Bank received 160,868 Customer complaints, with 8,285 pending at year-end—up from 123,195 complaints and 2,990 pending in FY2024.

The Customer Service Committee of the Board continues to oversee improvements, guided by the BankRss publicly available policies on grievance redressal and customer rights. Customer feedback mechanisms include social media monitoring, surveys, and in-branch interactions. Notably, the Bank conducted its first Materiality Analysis Survey in May 2024, gathering stakeholder insights to shape customercentric strategy.

Inclusive Services for Senior Citizens and Pensioners

The Bank provides dedicated services to senior citizens and pensioners, including a special toll-free line (1800 203 1911) and proactive IVR reminders in five languages. Digital life certificate submissions and doorstep service bookings further enhance accessibility for this segment.

Commitment of Bank towards Accessibility and Inclusion for Persons with Disabilities:

In alignment with the Rights of Persons with Disabilities (RPwD) Act and accessibility standards, the Bank has strengthened its policy to ensure inclusive banking services for senior citizens, disabled, and incapacitated account holders. Key initiatives include:

• Nodal Officers: Branch Managers serve as nodal officers at the branch level, while the General Manager, Customer Care Department (CCD), oversees disability- related issues at the Central Office, with contact details available on the BankRss website.

• Advisory Committee: A four-member committee, led by the General Manager-CCD and including representatives from DPTB, BSD, DIT. While forming this committee, it has been taken into care that one member of committee shall be a person with disabilities. In the absence of a disability representative, the MD & CEO/ED is authorized to appoint a senior officer with a disability.

• Customer Service Committee: At least one member of the branch-level Customer Service Committee is a person with disabilities.

• Infrastructure and Technology: Of the BankRss 3,447 ground-floor branches, 2,604 have ramp facilities, and most offices are equipped with elevators or accessible infrastructure. The Core Banking Solution now includes flagging for customers with special needs.

• Training and Sensitization: Over 8,073 staff participated in webinars and training sessions on providing inclusive services to customers with disabilities.

• Dedicated Services: Visually challenged customers have non-discriminatory access to banking facilities, including cheque books, ATMs, net banking, lockers, loans, and credit cards. A dedicated or priority counter is available for differently abled persons.

• Doorstep Banking: For differently abled or infirm customers, doorstep services include cash/instrument pickup, cash delivery, demand draft delivery, and submission of KYC documents or life certificates .These services are available on demand.

The Bank remains committed to customizing products and services to meet the needs of persons with disabilities, ensuring an inclusive and seamless banking experience.

Product Innovation and Customisation

The Bank shifted its approach from standardised offerings to customised, purpose-driven products. Notable examples include:

• Cent Grih Lakshmi, promoting womenRss financial empowerment.

• Cent e-Vehicles and participation in the PM Suryaghar Muft Bijli Yojana, supporting environmental sustainability.

These offerings align with the BankRss focus on delivering solutions that meet evolving customer expectations and broader ESG priorities.

“The initiatives undertaken in FY2025 reflect Central Bank of IndiaRss strategic focus on customer centricity, operational excellence, and digital transformation. Through its integrated customer care architecture, product innovation, and expansive outreach—both physical and digital—the Bank continues to reinforce its role as a trusted financial partner, committed to enhancing access, service quality, and overall customer satisfaction.”

International Division

Centralised Forex Cell (CFC)

In FY2024-25, the Bank initiated a major transformation in its foreign exchange operations through the establishment of a Centralised Forex Cell (CFC) aimed at enhancing service quality and ensuring better compliance. This initiative was formally launched on the BankRss 143^rd FounderRss Day, August 9, 2024, at Sir Sorabji Bhawan (formerly Ewart House), Mumbai. Key operational highlights include:

• All cross-border transactions including outward and inward remittances, foreign bank guarantees, import bills, foreign letters of credit, and export-related transactions are now processed centrally through the Cent e-Trade Portal.

• All branches, irrespective of their AD classification, can now initiate trade and non-trade forex transactions via the Cent e-Trade Portal after performing preliminary document scrutiny. This eliminates the need for customers to visit an AD Category RsBRs branch.

• A customer-facing web interface—the Cent e-Trade Customer Web Portal—was introduced to facilitate the online submission of outward remittance applications. Customers can now upload required documentation digitally, which significantly improves turnaround time and operational transparency.

• The portal enables real-time tracking of applications by the CFC, bank branches, and customers.

Foreign Exchange Turnover and Initiatives

The total Foreign Exchange Merchant Turnover (covering inward and outward remittances, exports, and imports) stood at Rs40,172 crore in FY2024-25, compared to Rs43,089.71 crore in FY2023-24. Strategic developments undertaken include:

The Bank opted for an enhanced Whole Turnover Export Credit Insurance for Banks (WT-ECIB) cover from Export Credit Guarantee Corporation (ECGC). This policy covers up to 90% of the total outstanding export credit limits (Packing Credit and Post-Shipment Credit up to Rs80 crore), thereby reducing provisioning requirements for export- related NPAs.

As on March 31, 2025, 101 customers were onboarded onto the FX Retail Platform, which allows retail customers to directly access live forex rates for buying/selling. All non- AD branches were also authorised to forward FX Retail onboarding requests to the International Division.

Customer outreach events were organised at major trade hubs including Mumbai, Kolkata, Karur, and Vadodara to promote the BankRss trade finance offerings and gather customer feedback.

Decentralisation and Channel Expansion

Until FY2024-25, forex business was conducted through 64 AD Category RsBRs branches. From April 22, 2025, the Bank began centralising forex operations starting with outward remittances. During the year, an additional 2,478 Category RsCRs branches were activated to initiate forex transactions directly through the Cent e-Trade Portal. These branches now submit applications directly to the CFC, significantly expanding the reach of forex services while ensuring regulatory compliance and improving customer convenience.

Export Credit Portfolio

As of March 31, 2025, the BankRss export credit portfolio stood at Rs3,757.01 crore, compared to Rs4,188.85 crore in the previous year. The decrease was attributed to:

• Crystallisation of NPAs in foreign currency accounts, especially defaults by four major exporter clients totalling approximately Rs320 crore.

• Geopolitical challenges including the Russia-Ukraine war and the Israel-Palestine conflict (Red Sea Crisis), which disrupted trade routes and impacted customers with regional exposure.

To reinforce the portfolio, the Bank undertook the following steps:

• Centralisation of foreign exchange business through the launch of the Cent e-Trade Portal

• Conduct of credit camps and exportersRs meets across the country

• Training programmes to strengthen staff capabilities in handling export credit

In addition, the Bank focused on offering customised financing solutions for exporters. The Cent Export Scheme was introduced, particularly targeting MSME exporters. This scheme features liberal credit norms, supported by ECGC cover, to ensure adequate and timely financing.

NRE and FCNR Deposit Growth

The Bank witnessed steady growth in its Non-Resident deposit base in FY2024-25.

Particulars	FY2023-24 (Rs crore)	FY2024-25 (Rs crore)
NRE and FCNR	7,372	7,758
Deposits
Growth Rate	—	5.24%

The increase is credited to competitive interest rates and improved service standards. In March 2025, the Bank centralised all NRI account opening activities at the Integrated Treasury Branch, enabling a more streamlined and compliant account onboarding experience.

Joint Venture: Indo-Zambia Bank Ltd.

Indo-Zambia Bank Ltd. is a joint venture between the Government of the Republic of Zambia and the Government of India, represented through Bank of Baroda, Bank of India, and Central Bank of India—each holding a 20% equity stake. The remaining 40% is held by Industrial Development Corporation (IDC), a Zambian government-owned investment company. ^•

• Established in 1984, the bank operates on a calendar year basis.

• As of December 31, 2024, Central Bank of India holds 83.2 million shares with a face value of 1 Zambian Kwacha per share.

Performance highlights for CY2024:

• Deposits rose by 25.96% to 15,962.62 million Kwacha

• Advances increased by 10.65% to 6,440.52 million Kwacha

• Net Profit for CY2024 stood at Kw 724.10 million, equivalent to approximately Rs220.49 crore

• The Bank received a net dividend of Rs7.51 crore from Indo-Zambia Bank on March 28, 2025

Treasury, Funds and Investment

As of March 31, 2025, Central Bank of IndiaRss investment portfolio stood at Rs1,43,032.02 crore. This includes Rs17,767.49 crore held in Non-SLR Government of India Recapitalisation Bonds. During the year, the Bank successfully adopted the Reserve Bank of India (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) Directions, 2023, with effect from April 1,2024. Accordingly, the investment portfolio was reclassified into Held to Maturity (HTM), Available for Sale (AFS), and Fair Value Through Profit and Loss (FVTPL) categories, further split into HFT/Non-HFT based on the nature of the security.

The impact of this reclassification on reserves and provisions was as follows:

Component	Rs crore
General Reserve	-4,942
AFS Reserve	+210
MTM Provisions	-3,698
Net Impact on Reserves	-1,034

Investment Portfolio Composition

Sl. No.	Composition	FY2024 (Rs crore)	FY2025 (Rs crore)
1	SLR	1,12,881.49	1,11,907.80
2	Non-SLR	36,656.64	31,124.22
	Total	1,49,538.13	1,43,032.02

Monetary and Macro-Economic Environment

In FY2024-25, India witnessed a moderation in inflation. CPI inflation averaged 4.7%, down significantly from previous years, primarily due to easing food prices—particularly vegetables—and a stable core inflation rate of around 4%. This softening inflation is expected to boost household consumption and corporate profitability. However, the RBI continues to monitor external risks including the monsoonRss performance and international commodity prices.

The Monetary Policy Committee (MPC) maintained a prudent stance throughout most of the year, holding the repo rate at 6.50%. As inflation continued to ease, the RBI initiated a policy pivot by cutting the repo rate by 25 basis points to 6.25% on February 7, 2025—its first rate cut since May 2020—indicating a calibrated return to accommodative policy.

Liquidity remained tight during the early part of FY2025, due to tax outflows, forex interventions, and higher currency demand. The RBI responded through:

• A 50 bps CRR cut in December 2024, injecting Rs1.16 lakh crore

• Conducting Open Market Operations (OMOs) worth Rs2.4 lakh crore

• Implementing Variable Rate Repo (VRR) auctions and forex swap operations

Globally, FY2025 was marked by synchronised monetary easing, with major central banks (excluding Japan) lowering interest rates. The US Federal Reserve reduced policy rates by 100 bps amid stable inflation and resilient growth. In contrast, Japan raised rates marginally. Fiscal expansion in Europe, notably GermanyRss revision of borrowing limits, shaped bond market trends.

In India, the 10-year G-Sec yield declined by 48 bps, closing FY2025 at 6.58%, supported by disinflation, rate cuts, and improved liquidity management.

Treasury Income Performance

Particulars	FY2023-24 (Rs crore)	FY2024-25 (Rs crore)
Profit on Sale of	637	1,048
Investments
Profit on Exchange	247	225
Transactions
Dividend Income	8	9
Profit/Loss on Revaluation	73	145
of Investments
Total Treasury Income	965	1,427

In FY2025, total treasury income increased significantly to Rs1,427 crore, driven by a substantial rise in profits from

investment sales. In addition, a reversal of provisions amounting to Rs306 crore was recorded. The total addition to the BankRss Profit and Loss Account from treasury operations thus stood at Rs1,733 crore. The BankRss AFS reserve also improved, increasing from Rs210 crore on April 1,2024 (posttransition) to Rs487 crore as on March 31,2025.

• Yield on Investments (excl. trading gains) rose by 30 bps: from 6.57% in FY2024 to 6.87% in FY2025

• Yield including trading gains increased by 54 bps: from 6.91% to 7.45%

To manage interest rate sensitivity, the Bank adjusted its portfolio duration profile. As of March 31,2025:

• Modified Duration: 3.46 (vs. 1.88 in FY2024)

• PV01: 13.28 (vs. 6.66 in FY2024)

Security Receipts: Revised RBI Guidelines and Financial Impact

Under new RBI guidelines dated March 29, 2025, for Government-guaranteed Security Receipts (SRs), banks are allowed to reverse excess provisions to the P&L account in cases where:

• A loan is transferred to an Asset Reconstruction Company (ARC) at a value higher than the net book value (NBV)

• Consideration includes only cash and SRs guaranteed by the Government of India

The fair valuation of these SRs must reflect the Net Asset Value (NAV) declared by the ARC and be based on assigned recovery ratings.

As of March 31, 2025:

• The Bank held SRs with a face value of Rs307.50 crore

• A provision of Rs179.83 crore was reversed to the P&L account

• A net MTM gain of Rs125.71 crore was also recognised in the P&L, based on fair valuation using ARC-declared NAVs

Strategic Expansion into the Insurance Sector

In a major strategic move, the Bank has forayed into insurance services:

• It emerged as the successful bidder to acquire:

o 24.91% stake in Future Generali India Insurance Co. Ltd. (FGIICL)

o 25.18% stake in Future Generali India Life Insurance Co. Ltd. (FGILICL)

• The shares are being acquired from Future Enterprises Ltd. (FEL)

• All necessary regulatory approvals have been obtained

• Share transfer is expected to conclude by June 2025

This investment marks a significant step towards the BankRss financial services diversification strategy, enabling it to offer integrated banking and insurance solutions. It is expected to:

• Enhance long-term shareholder value

• Create new revenue streams

• Reduce dependence on conventional banking income

Risk Management System / Organisational Set-Up

Central Bank of India has established a comprehensive risk governance framework to manage financial and nonfinancial risks, including ESG-related exposures. The Risk Management Committee of the Board provides strategic oversight for Credit, Market, Operational, and Pillar II risks. The committee reviews product pricing policies, assesses evolving risk models, and ensures alignment with market conditions and regulatory expectations. A dedicated Task Force on ESG was also constituted to frame the BankRss ESG strategy and execute it through designated nodal officers and a steering sub-committee.

Operational risk preparedness was further enhanced with the constitution of a Crisis Management Team, which held its first meeting in December 2023. A Bank-level Monitoring Committee is being set up to ensure institutional readiness. Furthermore, an IT Risk Management Committee and a Customer Service Committee of the Board are in place to uphold service integrity and technology risk controls.

The BankRss integrated approach to risk management is supported by documented policies, regular committee meetings, and the designation of Chief Managers and Senior Managers as Risk Managers at zonal and regional levels. These managers act as the extended arms of the Central Office Risk Management function.

Market Risk Management

The Bank actively manages Market Risk through its Asset Liability Management Committee (ALCO), chaired by the MD & CEO. This committee ensures appropriate balance sheet structuring, funding strategies, and adherence to risk appetite thresholds.

Tools such as Value-at-Risk (VaR) and Duration Gap Analysis are used for measuring and monitoring market risks. The Bank has a Board-approved Market Risk Policy, and counterparty limits for treasury operations are periodically reviewed. The Mid Office provides critical analytics on market exposure, and regular reviews are presented to senior management. The Bank reported no outstanding exchange-traded interest rate derivatives as of March 31, 2025. The treasury outlook for FY2025 was deemed favourable, supported by stable interest rate dynamics and a calibrated investment strategy.

Credit Risk Management

Credit Risk oversight is entrusted to the Credit Risk Management Committee (CRMC) and the BoardRss Risk Committee. The Bank has deployed sophisticated internal rating models across borrower segments, including large corporates, infrastructure, NBFCs, SMEs, and agriculture. Scorecards are used for retail lending evaluations.

Performance against key credit risk metrics for FY2025 was as follows:

• Gross NPA: 3.18% (Target: <4%)

• Net NPA: 0.55% (Target: <1%)

• Provision Coverage Ratio (PCR): 96.54% (Target: 95 - 96%)

• Credit Cost: 1.10% (Target: 1.00 - 1.25%)

• Slippage Ratio (QoQ): 0.56% (Target: <0.50%)

For FY2026, the Bank has set more ambitious targets:

• Gross NPA: <3.00%

• Net NPA: <0.45%

• PCR: 96 - 98%

• Credit Cost: Up to 1.00%

• Slippage Ratio: <0.35%

The Restructured Book stood at Rs2,169 crore, with sector-

wise distribution across Retail (Rs565 crore), Agriculture (Rs106 crore), MSME (Rs577 crore), and Corporate (Rs921 crore).

Additionally, the Bank has integrated climate risk analysis into its credit framework to address ESG-linked financial exposures, especially in carbon-intensive sectors.

Operational Risk Management

Operational Risk is governed by a Board-approved Operational Risk Management Policy and monitored by the Operational Risk Management Committee (ORMC) led by the MD & CEO. The Bank has deployed an Incident Management Module (IMM) under its Integrated Risk Management Solution (IRMS) to log and analyse operational losses, near misses, and systemic issues.

Key performance highlights for FY2025:

• Cybersecurity Incidents: Nil

• Data Privacy Incidents: Nil

• Disruptions in Essential Services: Nil

The BankRss strategy includes proactive controls on fintech partnerships, digital transactions, and network expansion. A New Product Approval Policy governs the risk evaluation of innovations. The Bank has also implemented a Business Continuity Plan (BCP) for service resilience.

Operational risk management supports the BankRss broader strategic priorities such as enhancing digital capabilities, ensuring data privacy, and achieving operational excellence.

Capital Planning

Capital Planning remains a core element of Central Bank of IndiaRss long-term strategy to ensure financial stability, regulatory compliance, and sustainable growth. The Bank follows a robust Internal Capital Adequacy Assessment Process (ICAAP), supported by a risk appetite framework that is designed to maintain capital levels well above the minimum regulatory thresholds under Basel III norms. The capital structure includes Tier I and Tier II capital components, and its adequacy is periodically reviewed through key capital indicators.

As of March 31,2025:

• Capital to Risk Weighted Assets Ratio (CRAR) stood at 17.02%

• Tier I Capital Ratio was 14.73%

• Leverage Ratio stood at 6.15%

During FY 2025, Bank has raised equity capital of Rs1,500.00 Crore through Qualified Institutional Placement (QIP), out of which Rs370.46 Crores is paid-up equity capital. Strategic capital mobilisation remains a priority to support growth initiatives and enhance financial resilience. Capital planning for FY2025 included measures to align capital adequacy with projected balance sheet expansion and credit risk exposures, while maintaining flexibility to respond to market opportunities and regulatory changes.

Asset & Liability Management Systems (ALM)

The BankRss ALM systems play a critical role in monitoring and managing liquidity and interest rate risks across its balance sheet. Oversight of ALM is vested in the Asset Liability Management Committee (ALCO), chaired by the MD & CEO, which meets periodically to review liquidity positions, funding structures, and market-related developments. The ALM framework is anchored by a Board-approved Asset & Liability Management Policy that governs:

• Structural liquidity and interest rate risk management

• Pricing of liabilities and loan products

• Maintenance of optimum balance sheet profile aligned with the BankRss risk appetite

• As of March 31,2025:

• The Liquidity Coverage Ratio (LCR) was 215.75%, comfortably above the regulatory requirement of 100%

• The Net Stable Funding Ratio (NSFR) stood at 140.93%

The Bank continued to revise its Base Rate, MCLR, EBLR, and RBLR in response to prevailing market conditions. Strategic objectives for ALM during FY2025 also included maintaining a prudent liquidity buffer and aligning funding strategies with anticipated credit growth.

Implementation of Basel III Guidelines

Central Bank of India continues to adhere to the Basel III regulatory framework for capital adequacy and risk management. In FY2025, the Bank:

• Adopted the Standardised Approach for Credit Risk

• Followed the Basic Indicator Approach for Operational Risk

• Applied the Standardised Duration Method for Market Risk

The BankRss risk governance is underpinned by a comprehensive set of Board-approved policies, including:

• Credit Risk Management Policy

• Operational Risk Management Policy

• Market Risk Management Policy

• ALM Policy

• Collateral Management Policy

• Model Risk and Validation Policies

• ICAAP Policy

• Integrated Risk Management Policy

These policies ensure that the BankRss risk practices remain forward-looking and aligned with both internal governance standards and external regulatory requirements. The Bank also continues to publish Basel III (Pillar 3) disclosures to promote transparency. The latest disclosure, as of March 31, 2025, is available on the BankRss website.

Fraud Risk Management

Central Bank of India maintains a proactive and structured approach to managing fraud-related risks through its dedicated Fraud Risk Management Cell (FRMC). In FY2025, the FRMC continued to play a vital role in safeguarding the BankRss brand, reputation, and financial assets by strengthening internal controls and ensuring timely detection, investigation, and prevention of fraudulent activities.

The vision of the FRMC is to minimise fraud risk exposure in a growing operational environment by embedding a culture of vigilance and control. This aligns with the BankRss broader risk management and governance objectives and supports sustainable, secure growth.

Core Functions of the FRMC

The FRMC operates within a robust fraud risk framework that includes: ^•

• Investigation oversight: Collecting and reviewing investigation reports for all suspected cases (excluding digital/ATM-related frauds).

• Root cause analysis: Analysing fraud cases to identify systemic gaps and weaknesses.

• Pattern recognition: Compiling common

characteristics and modus operandi to detect trends.

• Preventive advisories: Recommending specific

measures and controls to prevent recurrence.

• Regulatory compliance: Reporting all declared fraud cases to the Reserve Bank of India (RBI) and serving as the official liaison for fraud-related matters.

• Staff awareness: Disseminating alerts and fraud case studies Bank-wide to raise employee awareness and foster a culture of early detection and escalation.

Technology-Enabled Monitoring

To further strengthen its fraud detection capabilities, the Bank has deployed an Enterprise-Wide Fraud Risk Management Solution (EFRMS). This platform enables real-time or near real-time transaction monitoring across digital channels, helping the Bank to:

• Detect anomalies and suspicious behaviour,

• Automatically flag or block transactions,

• Trigger alerts for further investigation or preventive action.

EFRMS contributes significantly to the BankRss layered defence against fraudulent activities and supports prompt containment and resolution.

Preventive Measures and Customer Security

To enhance security in cheque transactions, the Bank has introduced Positive Pay functionality, which is now accessible through Internet Banking, Mobile Banking, and physical branches. This system verifies the authenticity of high-value cheques and prevents cheque cloning or alteration.

The BankRss commitment to secure banking also extends to grievance redressal and customer care. In FY2025, the BankRss Integrated Customer Care platform supported the processing of over 160,000 complaints, and strengthened trust through transparency, defined turnaround times (TATs), and structured escalation channels.

The overarching customer service theme for FY2025 was “Customer Satisfaction with Value Creation”, reflecting the BankRss emphasis on risk-aware, customer-centric operations.

Here is the polished and consolidated (pc) version of the section on Special Mention Accounts (SMA) and NPA Management for Central Bank of IndiaRss MD&A for FY2025:

Special Mention Accounts (SMA) and NPA Management

Central Bank of India continues to maintain a focused and structured approach to the management of Special Mention Accounts (SMAs) and Non-Performing Assets (NPAs) as part of its broader asset quality strategy. In FY2025, the Bank implemented a range of recovery-oriented interventions in line with its board-approved Recovery Policy, demonstrating consistent effort to minimise credit risk and improve balance sheet quality.

Recovery Framework and Governance

The BankRss Recovery Policy provides a comprehensive framework for NPA management. It encompasses:

• Rigorous monitoring and follow-up of overdue accounts,

• Execution of compromise settlements,

• Enforcement under the SARFAESI Act,

• Engagement with enforcement agencies,

• Allocation of recovery portfolios,

• Sale of assets to Asset Reconstruction Companies (ARCs) using the Swiss Challenge Method, and

• Measures to handle wilful default cases.

Oversight of these efforts is vested in a dedicated Recovery Committee. This Committee is responsible for regularly monitoring recovery progress, evaluating slippages, formulating turnaround strategies for stressed accounts, and guiding overall NPA containment measures.

To enhance recovery effectiveness, the Bank incorporates specialised training programmes for its personnel, with modules on “Recovery Tools & Negotiating Skills” and NPA recovery management forming a critical component of its capability-building agenda.

Key Metrics - FY2025 Performance

As of the fiscal year ended March 31, 2025, the Bank reported the following performance under NPA and SMA management:

• Slippages (Fresh NPAs): Rs2,975 crore

• Increase in Balance of Existing NPAs: Rs520 crore

• Upgradations (Accounts returning to Standard category): Rs660 crore

• Recovery from NPAs: Rs1,611 crore

• Regular Write-Offs: Rs179 crore

Additionally, the Bank recovered Rs3,396 crore during FY2025 (inclusive of both NPA and written-off accounts), following a recovery of Rs3,636 crore in FY2024. The achievement against this composite target highlights the BankRss aggressive stance in pursuing recoveries through multiple channels.

SMA Portfolio - Composition and Reduction

Central Bank of India achieved a notable reduction in its SMA book during FY2025, reflecting proactive monitoring and early warning mechanisms. The total SMA outstanding as of March 31, 2025, was Rs10,007.07 crore, down from Rs15,919.03 crore a year earlier.

Segment-wise SMA position as of March 31,2025:

• Retail: Rs 5432.45 crore

• Agriculture: Rs 638.09 crore

• MSME: Rs 3461.10 crore

• Corporate: Rs 475.43 crore

This contraction in the SMA book indicates the success of the BankRss early intervention systems, which are designed to prevent further slippage into NPAs and strengthen credit discipline among borrowers. In summary, Central Bank of IndiaRss performance in FY2025 reflects a well-structured and outcomes-driven approach to NPA resolution and SMA containment, aligned with its strategic objective of improving asset quality and maintaining financial resilience.

Bancassurance

Central Bank of IndiaRss Bancassurance Cell continues to play a pivotal role in expanding the BankRss non-interest income streams by managing the distribution of life, nonlife, and health insurance products. The Bank operates under a corporate agency license issued by the Insurance Regulatory and Development Authority of India (IRDAI), valid until March 31,2028.

In FY2025, the Bancassurance business registered notable growth, driven by strong performance across both life and general insurance segments. The Bank remains strategically positioned to expand this line of business, capitalizing on its broad branch network, established partnerships, and dedicated sales force.

Key performance highlights for FY2025:

• Life Insurance: The Bank mobilized 59,541 policies, earning a commission of Rs124.25 crore.

• Non-Life Insurance: A total of 351,538 policies were sourced, generating a commission of Rs17.43 crore.

• Total Bancassurance Earnings: The overall income from Bancassurance activities reached Rs141.68 crore.

While the number of specified persons dedicated to Bancassurance sourcing was 5,415 in FY2025.

Strategic Tie-Ups and Open Architecture

Operating under IRDAIRss open architecture model, Central Bank of India has forged alliances with leading insurance providers, including:

• Life Insurance Corporation of India (LIC)

• TATA AIA Life Insurance Co. Ltd.

• The New India Assurance Co. Ltd.

• Bajaj Allianz General Insurance Co. Ltd.

This structure enables the Bank to offer a diverse and competitive suite of insurance products, effectively addressing varied customer needs across different demographic and economic segments. Looking ahead, the Bank will continue to build on its Bancassurance success by:

• Deepening customer engagement

• Expanding policy volumes across both life and non-life segments

• Enhancing commission income

• Launching innovative, need-based insurance solutions

• Upgrading the training and capabilities of its Bancassurance personnel

By leveraging its trusted brand and distribution strength, Central Bank of India aims to make Bancassurance a core contributor to revenue diversification and customer-centric value creation in the coming years.

Digitalization of Insurance Business: Bank has made available to its customers, option to purchase Life and General Insurance policies through its superapp, Cent eeZ. Customer can purchase Motor, Property, Mediclaim & Life Insurance policies of Tie up partners through their login credentials.

Depository Services

Central Bank of India continues to strengthen its Depository Services by functioning as a Depository Participant (DP) with Central Depository Services (India) Limited (CDSL). Operations are fully centralised and managed through the BankRss Nodal Office—Capital Market Cell—located at the Emerging Business Branch in Fort, Mumbai. All branches are equipped to facilitate Demat account openings through OLAO (CDSL software), and the Bank has implemented a 3-in-1 e-trading facility (Trading + Demat + Savings) in partnership with Motilal Oswal Financial Services Ltd. As on 31 March 2025, the Bank had 26,704 active Demat account holders. The Capital Market Cell also serves as the Nodal Office for ASBA (Applications Supported by Blocked Amount) services.

Mutual Fund

The Bank holds a valid AMFI registration from the Association of Mutual Funds in India (AMFI) for the distribution of mutual fund products to its customers. This license is valid until May 16, 2026. As part of its digital wealth offerings, the Bank has made the products of ten Asset Management Companies (AMCs) available through its Cent eeZ application under the RsWealth PlanningRs section. The platform serves as a distinctive channel for customers to make informed investments in mutual funds.

Digital Payments & Transaction Banking

In FY2025, Central Bank of India advanced its digital transformation agenda with measurable progress in digital payments and transaction banking. The BankRss strategic investments in digital infrastructure, customercentric innovation, and financial inclusion resulted in higher transaction volumes, broader platform adoption, and stronger engagement across its digital ecosystem. These developments underscore the BankRss resolve to evolve into a future-ready financial institution equipped to serve a digitally empowered India.

Key Achievements

Central Bank of India recorded several notable milestones in FY2025:

• Supply Chain Finance (SCF) was successfully launched, supported by a Memorandum of Understanding signed with PSB Alliance Pvt. Ltd. on March 27, 2025.

• The Bank processed an average of 99.35 lakh UPI transactions per day, indicating deep integration with the countryRss digital payment fabric.

Management Discussion & Analysis

(contd.)

• Real-time payment capabilities remained strong, with 4.44 lakh daily average IMPS transactions.

• Mobile and internet banking continued to see rising engagement, with 0.49 lakh and 0.51 lakh daily average transactions, respectively.

• The BankRss POS terminal base expanded 6.59% year- on-year to reach 3,234 terminals, while the ATM and cash recycler network grew to 4,085 units, with a focus on rural and semi-urban regions.

• User adoption reached new highs: 114.29 lakh internet banking users, 91.90 lakh mobile banking users, and 41.32 lakh UPI users.

Service Enhancements

To reinforce its service delivery, the Bank implemented a

suite of digital and customer-facing enhancements:

• Instant Cash Deposit (ICD) via UPI-enabled ATMs was launched at Global Fintech Fest 2024, offering round- the-clock cash deposit capability.

• 25 BC MAXX centres were operationalised to extend full- suite digital banking services to underserved regions.

• Digital onboarding was simplified with the rollout of Video KYC, and e-KYC-based updates became accessible via SMS, mobile, internet banking, and BC points.

Performance Metrics

The digital channel performance in FY2025 reflected strong

momentum:

Metric	FY2024	FY2025	Growth (%)
Internet	104.84 lakh	114.29 lakh	9.01%
Banking Users
Mobile Banking	76.46 lakh	91.90 lakh	20.19%
Users
UPI Users	33.19 lakh	41.32 lakh	24.50%
POS Terminals	3,034	3,234	6.59%
(as of MarRs25)			^ YoY

Strategic Initiatives

In alignment with its broader digital vision, the Bank pursued the following strategic priorities during FY2025: ^•

• Strengthening digital capabilities and operational excellence.

• Expanding customer outreach through strategic partnerships, particularly with fintechs.

• Introducing tailored solutions for MSMEs and corporates.

• Enhancing the BankRss digital lending infrastructure and lead generation platforms.

• Launching a dedicated corporate banking application to serve enterprise clients and SMEs.

Future Outlook

The Bank is poised to deepen its digital footprint with targeted investments and innovation in FY2026 and beyond. Planned initiatives include:

• Enhanced UPI features: Hello UPI, UPI International, UPI Global, Virtual Wallet, Marketplace, and in-app Credit Score access.

• Omni-Channel Platform to unify customer experience across devices and channels.

• 600+ new ATMs to be deployed as part of network expansion.

• Green Channel deposits, Interoperable Cardless Cash Withdrawals (ICCW), and further digitisation of core banking services.

• Adoption of emerging technologies such as AI, blockchain, and metaverse for process efficiency and digital engagement.

• BC MAXX: 250 BC MAXX centres are planned to be opened in FY 2025-26 to promote digital banking needs in unbanked areas.

These forward-looking initiatives affirm Central Bank of IndiaRss commitment to building a digitally empowered, accessible, and inclusive banking environment for its diverse customer base.

IT Infrastructure

In FY2025, Central Bank of India continued to strengthen its Information Technology (IT) infrastructure as a strategic enabler of operational excellence, digital innovation, and customer-centric banking. Serving as the backbone for core banking platforms and digital services, the BankRss IT systems were instrumental in supporting transaction growth, enhancing service delivery, and safeguarding business continuity across its nationwide network.

Core Infrastructure and Digital Backbone

The BankRss IT infrastructure is anchored by ISO-certified Data Centres that support mission-critical platforms, including the Core Banking Solution (CBS), Treasury, Trade Finance, and Loan Lifecycle Management systems. These Data Centres ensured high availability, robust security, and real-time processing capabilities, thereby maintaining data integrity throughout the fiscal year. In addition, the Bank has implemented several key systems to enhance customer service, employee enablement, and regulatory compliance. These include Anti-Money Laundering (AML) solutions, Application Supported by Blocked Amount (ASBA), Integrated Risk Management System (IRMS), Fraud Risk Management System (FRMS), a Centralised e-TDS Management Solution, and a Document Management System (DMS), among others.

The Bank also sustained a resilient Business Continuity framework, supported by a fully operational Disaster Recovery Centre and Near-Site backup infrastructure. Regular disaster recovery drills and data integrity tests were carried out to maintain zero data loss capability and uninterrupted banking operations.

Cybersecurity and Resilience

Cybersecurity was a central pillar of the BankRss IT strategy in FY2025. The BankRss round-the-clock Cyber Security Operation Centre (CSOC) enabled continuous threat monitoring, rapid incident response, and compliance with regulatory norms. The deployment of Privilege Access Management Systems (PAMS) and Data Leakage Prevention (DLP) tools helped safeguard sensitive data and mitigate internal risks.

Adherence to ISO 27001 (Information Security) and ISO 22301 (Business Continuity) standards was maintained. The Bank also explored advanced security frameworks, including blockchain applications, to enhance transaction integrity and fraud prevention.

Digital Enablement and Service Expansion

The IT infrastructure played a catalytic role in enabling new- age banking services. Enhancements to digital service delivery included support for Interoperable Cardless Cash Withdrawal (ICCW) and Green Channel Cash Deposits via mobile applications, improving convenience and accessibility for customers. Technologies such as Artificial Intelligence (AI), Machine Learning (ML), Robotic Process Automation (RPA), and blockchain were embedded across operational workflows to drive efficiency and service personalisation.

The BankRss transition to microservices-based architecture, combined with the use of automated integration tools, supported rapid deployment of digital solutions. This approach provided scalability, agility, and cross-platform consistency in delivering new services and customer journeys.

Strategic Oversight and Future Focus

Governance of the BankRss IT strategy was exercised by the Board-level IT Strategy Committee (ITSC), which provided direction on digital innovation, infrastructure upgrades, and risk oversight. This governance structure ensured alignment with the BankRss long-term strategic vision.

Looking ahead, the Bank plans to roll out enhanced UPI functionalities—including Hello UPI, UPI International, UPI Global, and integrated Credit Score access—alongside the development of an Omni-Channel Platform to unify the customer experience across web, mobile, and physical channels.

In FY2025, the Bank self-service footprints stood at 4085 (ATMRss), further aimed at expanding its self-service footprint. A dedicated corporate banking application, tailored for SME and institutional clients, is also under development to cater to the evolving needs of enterprise banking.

Central Bank of IndiaRss ongoing investment in IT infrastructure and digital capabilities reflects its ambition to emerge as a technology-led, secure, and inclusive financial institution. The Bank remains focused on innovation, resilience, and customer empowerment as core tenets of its digital journey in a rapidly evolving financial services landscape.

Information Security

In FY2025, Central Bank of India reinforced its commitment to information security as a critical pillar of its digital banking strategy. Recognising the growing sophistication of cyber threats and the increasing regulatory focus on data protection, the Bank adopted a holistic and proactive approach to safeguarding its information assets, customer data, and digital infrastructure. This effort was anchored in industry best practices, continuous policy refinement, and adherence to global standards.

Security Governance and Regulatory Compliance

The Bank maintained continuous compliance with major regulatory frameworks and international certifications, including ISO 27001 (Information Security Management System) and ISO 22301 (Business Continuity Management).

In addition, it achieved PCI-DSS v4.0 Level 1 compliance, underscoring its strong controls around cardholder data security. As part of its governance mechanism, information security and cyber risk policies—covering electronic banking, technology risk, and cyber frauds—were periodically reviewed and approved by the Board, with the latest review conducted on February 28, 2024. These policies guided the BankRss operations throughout FY2025.

Cyber Security Operations and Monitoring

At the operational core of the BankRss security architecture is the Cyber Security Operation Centre (CSOC), which functions 24x7 to provide real-time surveillance across all critical servers and network devices. This centralised facility enabled the prompt identification, escalation, and resolution of threats, supporting the BankRss zero-tolerance stance on breaches.

Advanced Security Controls

To mitigate insider threats and data breaches, the Bank deployed sophisticated control systems including:

• Privilege Access Management System (PAMS) to manage administrative privileges securely

• Data Leakage Prevention (DLP) tools to monitor and block unauthorised transmission of sensitive data

• Two-Factor Authentication (2FA) for digital channels to bolster customer transaction security

• SMS alert systems and real-time monitoring protocols for anomaly detection

These tools were supported by regular Information Security (IS) audits and Vulnerability Assessment and Penetration Testing (VAPT) conducted by CERT-In empanelled auditors, ensuring that defences remained adaptive and resilient.

Disaster Recovery and Business Continuity

The Bank continued to operate a comprehensive Disaster Recovery Centre (DRC) along with a Near-Site Setup,

enabling real-time replication and continuity of critical operations with zero data loss. Regular disaster recovery drills were conducted in line with RBI guidelines, reaffirming the BankRss preparedness against unexpected disruptions.

Digital Enablement and Secure Infrastructure

The foundation of secure service delivery was supported by the BankRss certified data centres, which hosted all mission- critical applications. FY2025 saw continued investments in the BankRss microservices-based architecture and automation platforms, which enabled scalable innovation across

digital offerings such as Interoperable Cardless Cash Withdrawals (ICCW) and Green Channel Cash Deposits.

These initiatives were underpinned by a strong technology risk management framework integrated with the BankRss broader IT governance strategy.

Cybersecurity Awareness and Resilience

While detailed statistics for FY2025 were not specified, the Bank maintained regular training programs to raise cybersecurity awareness among employees and customers. These programs were aimed at enhancing behavioural defences and fostering a security-first culture within the organisation.

Forward Strategy

Looking ahead, the Bank aims to:

• Upgrade its primary and backup data centres for enhanced security and operational efficiency

• Extend its cybersecurity framework to cover emerging technologies such as AI, blockchain, and metaverse- linked banking environments

• Expand cybersecurity awareness campaigns for

both internal stakeholders and customers

• Invest in real-time threat detection automation,

integrating predictive analytics to enhance response mechanisms

IT Governance

In FY2025, Central Bank of India continued to strengthen its IT Governance framework as a strategic enabler of operational efficiency, digital transformation, and competitive advantage. With technology playing an increasingly critical role in safeguarding data and delivering seamless services, the Bank reinforced its commitment to robust oversight, risk management, and innovation in its IT function.

Strategic Oversight and Governance Structure

The BankRss IT governance is anchored by three principal committees:

• The IT Strategy Committee (ITSC), chaired by an Independent Director, provides strategic direction and oversight on key IT initiatives. The committee meets quarterly and includes technical experts from institutions such as IIT and IISc, in compliance with RBI guidelines requiring technically competent members to guide technology adoption and risk management.

• The IT Risk Management Committee (IT-RMC),

led by the MD & CEO, meets monthly and includes Executive Directors, the Chief Risk Officer, the Chief Information Security Officer (CISO), and senior IT officials. It plays a pivotal role in identifying, evaluating, and mitigating IT risks. Its mandate includes reviewing regulatory compliance, IT audit findings, infrastructure risks, and compensating controls.

• The IT Steering Committee, comprising senior executives from key business verticals, ensures alignment of IT investments with the BankRss strategic and operational objectives. It facilitates cross-functional collaboration and informed decision-making on technology initiatives.

IT Organisational Structure

The BankRss IT Department, led by a General Manager and supported by Deputy and Assistant General Managers along with specialized staff, is structured into four key verticals: Technology and Development, IT Operations, IT Assurance, and Supply & Resource Management. Each function is headed by experienced professionals who oversee project execution, operations, and assurance.

Regulatory Compliance and Assurance

The Bank maintained full compliance with RBIRss IT and cybersecurity guidelines, supported by certifications such as ISO 27001 (Information Security Management) and ISO 22301 (Business Continuity Management). Additionally, the Bank achieved PCI-DSS Level 1 Version 4.0 certification, underscoring its commitment to data security, particularly for cardholder transactions.

Independent assessments—including Information Security (IS) audits and Vulnerability Assessment and Penetration Testing (VAPT)—are conducted by CERT-In empanelled auditors. Observations from these audits are reviewed and acted upon by the IT-RMC to ensure risk mitigation and policy adherence.

With a well-defined governance architecture and a future- ready IT roadmap, Central Bank of India remains committed to leveraging technology to meet the evolving needs of its customers. Continued investments in digital platforms, risk mitigation frameworks, and operational efficiency are central to its goal of delivering secure, reliable, and inclusive banking in a fast-evolving financial ecosystem.

Digital Initiatives

In FY2025, Central Bank of India deepened its digital transformation agenda, reinforcing the pivotal role of technology in driving operational efficiency, enhancing customer experience, and accelerating innovation. With a strong focus on customer-centricity and financial inclusion, the Bank leveraged digital capabilities to deliver seamless, scalable, and secure services across all segments. These efforts are aligned with the BankRss strategic vision of enabling inclusive access to a comprehensive suite of products, services, and advisory solutions through digital platforms.

Key Digital Initiatives

The Bank implemented a series of impactful digital initiatives designed to improve service delivery, enhance operational agility, and elevate customer satisfaction:

• Deployed Cent Chanakya, an AI-based chatbot to support branch staff with real-time query resolution.

• Rolled out a Digital Lending Platform to automate loan processing, reduce turnaround times, and enhance the credit experience through data-driven decisioning.

• Introduced a microservices-based containerised architecture, ensuring scalability, flexibility, and accelerated application deployment.

• Enabled Internet Banking Enhancements, including Re-KYC, electronic One-Time Settlements, and online nomination updates.

• Launched Virtual Debit Cards for secure and convenient e-commerce transactions.

• Integrated UPI Lite within the BHIM Cent UPI app to support PIN-less low-value payments, improving transaction speed and user adoption.

• Advanced the BankRss retail lending mission by leveraging digital processes for home, auto, education, and personal loans.

These initiatives underscore the BankRss strategic approach to embedding technology across its operations to deliver high- impact customer outcomes.

Technological Advancements

The success of these digital initiatives was underpinned by a resilient and agile IT infrastructure:

• The Bank upgraded its network and computer systems to support increasing volumes and ensure future-readiness.

• Advanced technologies such as AI, ML, and RPA were embedded into core systems for better analytics, process automation, and service delivery.

• Introduced an enterprise-level Knowledge Management System and Lead Management

System to support sales and service excellence.

• Maintained ISO-certified Data Centres and business- critical applications such as Core Banking, Trade Finance, Treasury, and Loan Lifecycle Management solutions.

• Continued investment in business continuity, cybersecurity, and digital scalability positioned the Bank to respond effectively to market dynamics.

These advancements laid a robust foundation for the BankRss digital strategy, ensuring uninterrupted services and agile innovation delivery.

Customer Engagement and Adoption

FY2025 witnessed significant digital adoption and engagement across platforms, validating the BankRss digital- first approach:

• Digital transactions grew by 25%, with strong traction in UPI, IMPS, and card-based payments.

• The BankRss POS terminal network and ATM footprint expanded, improving access and convenience.

• Self-service features such as mobile number/KYC updates, Form 16 downloads, and transaction timestamping enhanced transparency and customer control.

• New tools for de-registering services and managing loyalty rewards strengthened the overall digital experience.

These achievements reflect growing customer trust in the BankRss digital capabilities and its ability to deliver responsive, secure, and user-friendly services at scale.

Future Digital Initiatives

Looking ahead, Central Bank of India is poised to further scale its digital capabilities with a comprehensive pipeline of innovations:

• Launch of enhanced UPI features on the Cent eeZ app, including Hello UPI, UPI International, Virtual Wallet, and Credit Score integration.

• Development of a true Omni-Channel platform for consistent experience across desktop, mobile, and tablet devices.

• Expansion of ATM infrastructure, with 638 additional ATMs targeted for FY2025-26.

• Opening of 250 BC MAXX centres in underserved locations to strengthen rural financial inclusion.

• Implementation of Green Channel Cash Deposits and Interoperable Cardless Cash Withdrawals (ICCW) to simplify transaction journeys.

• Customised Digital Banking Solutions for MSMEs and Corporates to improve credit access and streamline financial workflows.

• Rollout of a Modern Data Platform and MarTech tools to personalise customer engagement using AI and big data analytics.

• Enhancements to the Integrated Customer Care (ICC) platform, introducing video banking, co-browsing, and real-time service tools.

• Plans to grow digital transaction volumes by 20% YoY, powered by sustained investment in emerging digital technologies.

These forward-looking initiatives are designed to solidify the BankRss position as a digitally-empowered, customer-first institution focused on long-term sustainability and innovation- driven growth.

Customer Service Initiatives

In FY2025, Central Bank of India reinforced its commitment to customer-centricity through a series of strategic initiatives aimed at simplifying processes, enhancing accessibility, and improving service quality. Guided by the theme “Customer Satisfaction with Value Creation,” the Bank focused on leveraging digital transformation and inclusive service delivery to meet the evolving expectations of its diverse customer base.

Digital Enablement and Service Convenience

The Bank made significant strides in improving customer convenience through digital innovation:

• UPI Lite integration in the BHIM Cent UPI (CentPay) application enabled smooth, PIN-free low-value transactions.

• Key MSME loan schemes (Cent Mudra, Cent Saral, Cent Business) were launched on the Digital Lending Platform (DLP); Cent GST Loan Scheme is scheduled for go-live by April 2025.

• Customers gained the ability to update mobile numbers and KYC details without visiting branches.

• Green Channel Cash Deposits via mobile apps reduced paper-based processes.

• ICCW (Interoperable Cardless Cash Withdrawal) was introduced, enabling ATM access without a debit card.

• Continued roll-out of Internet Banking enhancements, including Re-KYC, e-One Time Settlements, and nomination updates.

• A Virtual Debit Card facility was made available for secure online transactions.

This expansion was supported by growth in digital engagement:

• Internet Banking Users: 114.29 lakhs (9.01% YoY growth)

• Mobile Banking Users: 91.90 lakhs (20.19% YoY growth)

• Daily average mobile transactions reached 0.49 lakhs, up 6.52% from FY2024.

Enhanced Transparency and Control

Empowering customers through greater digital autonomy:

• Customers can now generate Form 16 and interest certificates directly via digital platforms.

• Fund transfer receipts include date and time stamps, ensuring traceability.

• Features were added to de-register services and manage loyalty rewards online.

Linguistic Inclusion

To support inclusivity, services were made available in 10 regional languages, in addition to Hindi and English, thereby enhancing outreach among diverse linguistic demographics.

Simplified Product Access

The Digital Lending Platform, co-lending partnerships, and branch expansion drove greater access:

• DLP streamlined loan origination and reduced subjectivity through data-backed decisions.

• Co-lending arrangements expanded to 34 NBFCs/ HFCs, improving outreach in RAM sectors.

• The BankRss network expanded to 4,545 branches, 4,085 ATMs, and 3,234 POS terminals by March 31, 2025 (6.59% growth in POS).

These efforts contributed to deepening financial inclusion, especially among underserved communities, supported by PMJDY accounts and financial literacy programs.

Real-Time Customer Engagement

The Bank launched a modern Integrated Customer Care (ICC) platform to deliver real-time, multi-lingual support:

• Fully operational from Mumbai and Hyderabad, with scalability and advanced outreach models.

• Introduced a revamped grievance redressal system and integrated complaint management system.

• Offered services via voice, IVR, chatbot, WhatsApp, video banking, and co-browsing.

• Delivered doorstep banking for senior citizens, visually impaired, and differently-abled individuals.

• Leveraged Feet-on-Street (FOS) models and collections call centres for customer support.

Enhanced Payment Security

Security was reinforced alongside convenience:

• UPI Lite transactions preserved security standards while enabling PIN-less low-value payments.

• Virtual Debit Card ensured safe e-commerce usage.

• The Cyber Security Operation Centre (CSOC) provided 24/7 monitoring.

• Continued compliance with ISO 27001, PCI-DSS, and RBI cybersecurity norms ensured strong protection of customer data and systems.

Through these initiatives, Central Bank of India has not only modernized its customer engagement model but also established a solid foundation for inclusive, secure, and responsive banking. FY2025 marked a pivotal year in aligning customer service with digital innovation and inclusive growth, affirming the BankRss position as a trusted financial partner to millions.

IT Awards & Recognitions

The Bank received awards for its technology leadership and innovation:

1. Best Technology Bank - Winner

Awarded at IBARss 20^th Banking Technology Conference, held on 24^th January 2025 in Mumbai.

2. Best Tech Talent & Organization - Special Mention

Recognized for “Excellence in managing and nurturing technology talent” at IBARss 20th Banking Technology Conference, held on 24^th January 2025 in Mumbai.

3. Outstanding Achievement in Technology Innovation

Won at QuanticRss 7.0 Technology Excellence Awards on 7th February 2025, Hyderabad, for the “Voucher Audit System”.

4. Excellence in Operational Efficiencies using Emerging Technology - Runner-up

Honoured at IBEX India 2025, held on 13^th February 2025 in Mumbai, for the “Central Rise Project”.

5. Best IT Risk & Cyber Security Initiatives - Special Mention

Recognized for strengthening Cyber Security for Security Operations Centre at IBEX India 2025, held on 13^th February 2025 in Mumbai

Audit and Inspection

Central Bank of India continues to place strong emphasis on prudent risk management through a comprehensive audit and inspection framework. The BankRss internal audit mechanisms are designed to ensure operational efficiency, regulatory compliance, financial accuracy, and institutional integrity across its network of branches and offices. In FY2025, the Bank sustained its focus on strengthening internal controls and safeguarding stakeholder interests by upholding rigorous audit standards and inspection protocols.

Audit and Inspection Overview

The audit and inspection framework forms a cornerstone of the BankRss governance and control architecture. It enables systematic evaluation of branch-level and functional operations, ensuring adherence to internal policies, regulatory directives, and financial reporting norms. Through structured and layered audit processes—including concurrent, compliance, and legal audits—the Bank reinforces its commitment to transparency, accountability, and risk mitigation.

Concurrent Audits

Concurrent audits serve as an early warning mechanism by providing real-time oversight of critical branch-level operations. As of March 31, 2025, a total of 1,228 branches and offices were covered under concurrent audits, accounting for approximately 60% of the BankRss total business and 72.64% of aggregate advances. This coverage spans general and specialised branches, currency chests, authorised dealer branches, government business nodal branches, and high-risk-rated branches. These audits were executed by a mix of ex-staff auditors and chartered accountancy firms empanelled by the Reserve Bank of India. Additionally, Regional Office-level auditors were appointed to review transactions checks of internal/offce accounts of branches not covered under routine concurrent audits. The Bank also undertakes an annual revenue checking exercise, typically held from March 1 to March 10, engaging internal auditors, chartered accountants, and designated officials to verify income recognition and booking accuracy.

Compliance Audits

To reinforce a strong compliance culture, the Bank conducts regular audits focused on regulatory and internal policy adherence. In FY2025, 696 branches underwent compliance audits. These assessments help identify deviations from prescribed norms, recommend corrective actions, and verify their implementation. The compliance audit framework is further supported by periodic inspections, including Know Your Customer (KYC) audits, aimed at upholding the BankRss integrity in customer due diligence and anti-money laundering practices.

Legal Audits and Re-Verification of Title Deeds

In accordance with Reserve Bank of India guidelines, the Bank conducts legal audits and re-verification of title deeds to ensure the legal soundness of its asset portfolio. These audits validate the enforceability of documentation in credit- related exposures and help protect the BankRss collateral interests. Re-verification of title deeds is performed to confirm the authenticity and validity of property documents held as security, serving as a critical risk management measure, particularly in the credit and legal recovery functions.

Rajbhasha (Official Language)

In FY2025, Central Bank of India reaffirmed its strong commitment to the promotion and implementation of Hindi as the Official Language across its operations. Aligned with national objectives, the BankRss initiatives in this domain were aimed at fostering inclusive communication, cultural

enrichment, and greater linguistic accessibility across its diverse stakeholder base.

The BankRss Rajbhasha Department led a series of structured and impactful initiatives throughout the year. These efforts reflect the BankRss proactive approach to strengthening linguistic inclusivity while upholding its role as a responsible public sector institution.

National Recognition and Awards

In recognition of its exemplary performance in Official Language implementation during FY 2024-25, the Town Official Language Implementation Committee (Bank), Madurai, under the BankRss convenorship, was awarded the prestigious Rajbhasha Kirti Award (Third Prize) by the Government of India on September 14, 2024. Additionally, the Department of Financial Services, Ministry of Finance, awarded the Bank a commendation certificate for outstanding efforts in Linguistic Region RsKhaRs.

Further accolades were received from the Regional Implementation Offices of the Ministry of Home Affairs. The Regional Office, Panaji, and TOLICs (Bank) of Panaji and Madurai each received First Prizes, while TOLIC (Bank), Bhopal was awarded Second Prize. Complementing these were awards from literary-cultural organisations such as Ashirwad, which recognized the BankRss Hindi house magazine Central Manthan as the Best House Magazine and honoured the Central Office for Rajbhasha implementation. Notably, Ms. Poppy Sharma, General Manager (Rajbhasha), received the Ashirwad Rajbhasha Gaurav Award for her exceptional contributions.

Across the BankRss network, 15 offices received First Prizes, 9 offices Second Prizes, 4 offices Third Prizes, and 5 received Encouragement Awards from various TOLICs for excellence in Official Language use during FY 2024-25.

National Conferences and Exhibitions

The Bank successfully hosted the National Official Language Conference in Thiruvananthapuram on March 6 - 7, 2025, drawing participation from Rajbhasha officers across the country. The event featured exhibitions, themed sessions, and discussions focused on linguistic innovation and inclusivity.

Concurrent with the conference, a National Official Language Exhibition was also held, with all Zonal Offices showcasing exhibits that celebrated both Hindi and regional culture. Zonal Offices in Lucknow, Ahmedabad, and Chennai were recognized for Best Exhibitions.

Knowledge Dissemination and Publications

During the year, the Bank published 13 e-books in Hindi on contemporary themes such as:

• Digital Banking and FinTech

• Blockchain and Cryptocurrency

• Artificial Intelligence and Machine Learning

• Green Banking and Sustainable Finance

• Financial Inclusion and Digital Payments

• Cybersecurity and Data Privacy

• Neo Banks and Digital-Only Banking

• Personal Banking and Customer Experience

• Robotic Process Automation (RPA)

• Cloud Banking

• Big Data and Analytics

• Future Currency and Payment Systems

• Social Impact and Ethics in Banking

These publications aim to democratize knowledge and encourage the use of Hindi in financial discourse.

Competitions and Events

To deepen engagement with the language, the Bank organized a series of national-level initiatives:

• Quarterly Online Hindi General Knowledge Competitions on May 5, August 17, December 16, 2024, and March 20, 2025.

• An International Rajbhasha Seminar hosted by Regional Office, Muzaffarpur on February 12, 2025.

• National Hindi competitions including:

8^th All India Inter-Bank Hindi Essay Competition

45^th All India Hindi Essay Competition o All India Hindi Song Singing Competition

• The National Rajbhasha Awards Ceremony, also held in Thiruvananthapuram on March 6 - 7, 2025, honoured:

• Four Best Zonal Offices: Bhopal, Delhi, Ahmedabad, and Chennai

• Thirteen Outstanding Rajbhasha Officers

• Three Best Exhibition Pavilions

• All Zonal Offices for their contributions to Hindi e-publications

Ongoing Publications and Communication

The Bank continued the quarterly publication of its bilingual house journal RsCentraliteRs and its Hindi magazine RsCentral ManthanRs. Zonal and Regional Offices also released e-magazines on a quarterly basis. Celebratory events including World Hindi Day and Hindi Day were marked across offices, and 110 Hindi posters featuring messages, proverbs, and guidelines were released nationwide to promote Hindi awareness.

Linguistic Infrastructure and Cultural Promotion

Central Bank of India continued to coordinate 11 Town Official Language Implementation Committees (NARAKAS) located across cities such as Akola, Bhopal, Deoria, Golaghat, Gwalior, Lakhimpur, Madurai, Panaji, Raipur, Thane, and Udalgudi.

A special milestone for FY2025 was the release of the BankRss official theme song, “Central Gaan,” on December 21,2024, by MD & CEO Mr. M. V. Rao, with significant contribution from the Rajbhasha Department.

Marketing

In FY2024-25, Central Bank of India advanced its marketing strategy in alignment with its broader strategic priorities— driving digital innovation, fostering sustainable growth, and deepening customer-centricity. Under the overarching theme of "Customer Satisfaction with Value Creation," the Bank adopted an integrated marketing approach that combined traditional methods with digital engagement, resulting in broader reach, stronger customer connections, and a reinforced brand identity.

Marketing Overview

The BankRss marketing efforts focused on enhancing visibility and customer engagement across diverse segments— retail, agriculture, MSME, and corporate—while supporting key strategic pillars such as financial inclusion, digital empowerment, and sustainable banking. Marketing campaigns were deployed through both the BankRss extensive physical network and its growing digital platforms, ensuring comprehensive customer outreach and alignment with business growth objectives.

Brand Reinforcement

During FY2025, Central Bank of India continued to strengthen its brand as a trusted, inclusive, and forward-looking public sector institution. This was underpinned by a clear commitment to ethical conduct, transparency, and responsible banking. Brand prestige was further elevated by national recognitions, including the Rajbhasha Kirti Award, Best MSME Bank (PSU), and Best Banker in MSME & Retail Banking. Accolades for the Hindi magazine "Central Manthan" further enhanced the BankRss cultural and linguistic brand equity.

Customer-Centric Campaigns

Marketing initiatives in FY2025 were shaped by the BankRss customer-first philosophy. The establishment of Integrated Customer Care (ICC) centres in Mumbai and Hyderabad marked a significant milestone in enhancing responsiveness and customer service standards.

Segment-specific marketing focused on:

• Promoting Cent Grih Lakshmi for women,

• Supporting Cent e-vehicles and PM Suryaghar Muft Bijli Yojna for sustainability, and

• Driving MSME growth, which saw advances increase by 18.80% during the year.

The Bank also intensified efforts in financial inclusion through the PMJDY scheme, achieving 16.09% growth in BC outlet business and 13.50% growth in total financial inclusion business.

Strategic Partnerships and Collaborations

Strategic alliances remained a cornerstone of the BankRss marketing and distribution strategy. Growth in Bancassurance was driven by partnerships with leading insurers, enhancing customer access to life, health, and nonlife products. A key collaboration in FY2025 was the signing of an MoU with PSB Alliance Pvt. Ltd. for Digital Supply Chain Finance (SCF), broadening support for MSMEs and expanding the BankRss product ecosystem.

Data-Driven Marketing and Analytics

As part of its digital transformation, the Bank increasingly adopted data-driven strategies to refine customer targeting and improve campaign effectiveness. Use of the Account

Aggregator Platform enabled smarter lead generation in retail lending. While specific analytics metrics were not disclosed, the emphasis on digital marketing implicitly supported a more informed and agile marketing approach.

Sustainability-Focused Marketing

The Bank continued to integrate environmental and social responsibility into its marketing narrative. Its pledge to achieve Net Zero Scope 1 emissions by 2028 and cut Scope 2 emissions by 50% over five years formed a compelling sustainability proposition.

Products such as Cent e-vehicles and green finance initiatives were actively promoted, helping the Bank position itself as a key player in IndiaRss sustainable finance landscape. These efforts also resonated strongly with environmentally conscious customers and investors.

Community Engagement and Corporate Social Responsibility

Marketing communications in FY2025 also spotlighted the BankRss contributions to social development and cultural inclusivity. Notable initiatives included:

• Expansion of PMJDY outreach,

• Publication of 13 Hindi e-books on contemporary banking topics,

• Online Hindi GK competitions, and

• Coordination of Town Official Language Implementation Committees (NARAKAS) across India.

These programs reflected the BankRss role as a socially responsible institution committed to inclusive development and knowledge sharing.

Digital Marketing

In FY2025, Central Bank of India positioned digital marketing as a strategic cornerstone in its journey toward becoming a future-ready, customer-centric institution. The BankRss efforts were aligned with its broader institutional goals of accelerating digital transformation, expanding financial inclusion, and deepening stakeholder engagement. By integrating data- driven insights, performance marketing techniques, and advanced digital infrastructure, the Bank effectively enhanced its customer acquisition capabilities, operational agility, and brand visibility across all key segments.

Digital marketing served as a critical growth enabler, supporting key business verticals such as retail, MSME, and

digital banking services. With a focus on reaching digital- first consumers and underserved communities, the BankRss digital campaigns in FY2025 generated over 1.62 lakh qualified leads—demonstrating their strategic contribution to new business generation and customer onboarding. This performance was underpinned by a holistic digital engagement framework encompassing real-time social media interaction, personalized email campaigns, search engine visibility, and mobile-first communication strategies.

Social media platforms—Facebook, Instagram, X (formerly Twitter), LinkedIn, and YouTube—emerged as powerful tools for customer engagement, brand storytelling, and service delivery. These platforms enabled the Bank to interact with customers in real-time, respond to service requests, showcase achievements, and communicate key updates. The dynamic nature of these channels also allowed the Bank to share customer success stories, celebrate institutional milestones, and engage broader audiences through curated and interactive content.

At the infrastructure level, FY2025 marked a continuation of the BankRss efforts to deliver a unified and accessible digital experience. Following the prior yearRss website redesign, the Bank initiated development of an Omni-Channel Customer Experience Platform—aimed at providing consistent, deviceagnostic service access across desktops, tablets, and mobile devices. This initiative is expected to significantly elevate the customer journey and reinforce brand uniformity across digital touchpoints.

To support discoverability and drive targeted traffic, the Bank deployed search engine optimization (SEO) techniques and pay-per-click (PPC) advertising across search and display networks. These channels helped amplify the visibility of the BankRss core products and services while ensuring cost- effective customer outreach. Simultaneously, email and direct marketing remained essential components of the communication strategy, leveraging customer insights and behavioural data to deliver personalized, lifecycle-based messages and offers.

The backbone of the BankRss digital marketing strategy was its robust use of data analytics and marketing automation. Real-time monitoring tools were deployed to evaluate campaign performance, analyse user behaviour, and refine messaging strategies. Plans to implement advanced marketing technology platforms and AI-based decision engines were formulated to enable predictive targeting, real-time personalization, and campaign scalability. These

systems are designed to strengthen customer engagement, maximize return on marketing investments, and optimize resource allocation.

FY2025 also saw a marked increase in digital banking adoption. Mobile Banking Users grew to 91.90 lakh (20.19% YoY growth), while UPI Users reached 41.32 lakh (24.50% YoY growth). Daily average UPI transactions stood at 99.35 lakh, and IMPS transactions averaged 4.44 lakh per day. These metrics validate the BankRss strong digital momentum and the growing preference for its mobile-first service ecosystem.

In parallel with its digital focus, the Bank maintained an active presence in traditional media. Through press releases, thought leadership content, and consistent engagement with journalists and financial publications, the Bank ensured timely and transparent communication with stakeholders. Executive visibility was further strengthened through the publication of thirteen e-books in Hindi, covering contemporary banking themes such as Artificial Intelligence, FinTech, Sustainable Finance, and Cybersecurity—highlighting the BankRss intellectual leadership and knowledge-sharing ethos.

Overall, FY2025 witnessed the execution of a cohesive, forward-looking marketing strategy that combined the scale of digital media, the familiarity of traditional communication, and the authenticity of community outreach. Central Bank of IndiaRss digital marketing initiatives not only reinforced its leadership position in the evolving financial services landscape but also laid the groundwork for scalable, inclusive, and ethically grounded growth in the years to come.

Corporate Social Responsibility and Community Development in FY2025

Central Bank of India regards Corporate Social Responsibility (CSR) as an intrinsic element of its commitment to inclusive and sustainable development. Although the Bank did not fall under the mandatory purview of Section 135 of the Companies Act, 2013 in FY2025, it continued to demonstrate a robust voluntary commitment to community advancement, financial literacy, environmental sustainability, and ethical banking practices. These endeavours form a key part of the BankRss broader social capital strategy and reflect its enduring role as a responsible financial institution.

As of 31^st March 2025, the Bank had disbursed Rs7.09 crore towards CSR activities from a total sanctioned amount of Rs14.14 crore. This expenditure underscores its sustained efforts in fostering societal well-being and developmental impact across key focus areas.

During the year, CSR and community engagement initiatives were undertaken across several domains:

• Education Support: The Bank extended assistance to 49 schools through various educational initiatives, with a focus on improving learning environments and supporting under-resourced institutions. Although no scholarships were awarded during the year, the Bank maintained its strategic emphasis on supporting foundational education for underserved communities.

• Healthcare and Well-being: Healthcare continued to be a focal area, with the Bank facilitating 606 health check-ups as part of its health initiatives. The launch of an online portal in February 2025 marked a step forward in streamlining access to these services. While specific figures on health camps were not disclosed, the Bank has set a target to scale up these efforts in the coming years.

• Community Development: Reinforcing its cultural and social engagement, the Bank organised the National Official Language Exhibition on March 6 - 7, 2025, in Thiruvananthapuram. This flagship event brought together zonal offices to celebrate linguistic inclusivity and regional heritage, highlighting the BankRss role in fostering cultural cohesion alongside financial empowerment.

• Environmental Responsibility: Environmental

stewardship remained integral to the BankRss CSR agenda. While quantifiable outcomes related to tree plantation or paper usage reduction were not reported for FY2025, the Bank reaffirmed its commitment to scaling green initiatives. It also supported the financing of sustainable infrastructure, including solar power plants and schemes like PM-KUSUM, promoting clean energy adoption and ecological resilience.

Across these diverse interventions, Central Bank of IndiaRss CSR efforts continued to deepen its engagement with local communities, strengthen stakeholder trust, and catalyse inclusive growth. These initiatives reflect the BankRss belief that the well-being of the community is inseparable from long-term institutional success.

Looking ahead, the Bank is exploring pathways to broaden its CSR impact through innovative and scalable approaches. Priorities include enhancing program impact assessments, encouraging structured employee volunteerism, conducting community needs diagnostics, and strengthening reporting on strategic partnerships. By embedding these practices into

its CSR framework, the Bank aims to advance transparency, accountability, and value creation for all stakeholders.

Through its proactive and principled approach to social responsibility, Central Bank of India continues to uphold its legacy as a catalyst for economic and social empowerment, delivering outcomes that resonate well beyond the realm of banking.

Vigilance

In FY2025, Central Bank of India reaffirmed its unwavering commitment to upholding the highest standards of integrity, transparency, and ethical conduct across all areas of its operations. The BankRss vigilance framework—anchored in regulatory compliance, preventive oversight, and institutional integrity—continued to be a cornerstone of its broader corporate governance and risk management strategy. Aligned with the principles of ethical, transparent, and accountable governance, the vigilance system at the Bank is designed not only to prevent malpractices but also to promote a culture of awareness, accountability, and continuous improvement.

As part of its institutional efforts, the Bank observed Vigilance Awareness Week from October 28 to November 3, 2024, under the theme “Culture of Integrity for NationRss Prosperity.” A series of structured initiatives, including the administration of a mass RsIntegrity PledgeRs and the dissemination of awareness materials, were undertaken to sensitize employees and customers alike. Over the course of the week and beyond, the Bank conducted 245 workshops and 538 sensitization programs, covering themes such as procurement ethics, organizational systems, governance, and cyber hygiene. The integration of a mandatory Know Your Customer (KYC) and Anti-Money Laundering (AML) module into all staff training underscored the BankRss proactive approach to preventing financial crimes. Training efforts extended to field staff and value chain partners, with a view to broadening the reach and depth of vigilance awareness.

The Bank also operationalized capacity-building measures through the regular sharing of case studies on fraud modus operandi, enhancing institutional memory and employee preparedness. Besides specific outreach activities such as youth competitions or Gram Sabha engagements were undertaken under the vigilance banner in FY2025, customerfacing platforms like social media and public campaigns during Vigilance Week allowed for direct engagement with rural and semi-urban communities.

The BankRss emphasis on systemic vigilance was reflected in robust internal controls and significant infrastructure enhancements. Four meetings of the Vigilance Committee were held during the year, ensuring regular overview of disciplinary cases and policy adherence. Surprise Inspections by Vigilance Officers were conducted across 1586 branches and offices, covering a major portion of the BankRss operational volume. The Surprise Inspection report (SIR) are aimed to draw reasoned conclusions on the level of preventive vigilance measures adopted and visible gaps if any.

The BankRss digital vigilance initiatives have grown in both sophistication and scope. Cybersecurity remains a top priority, with the establishment of a 24/7 Cyber Security Operation Centre (CSOC), deployment of a Privilege Access Management System (PAMS), and implementation of an Enterprise-Wide Fraud Risk Management System (EFRMS) that monitors transactions in real-time. Digital measures such as Positive Pay, Video KYC, and paperless KYC updates have also reduced risk in customer onboarding and transaction processes. In compliance with ISO 27001, ISO 22301, and PCI-DSS Level 1 standards, regular IS audits and vulnerability testing were conducted by CERT-In empanelled auditors. These practices were recognized by the industry, with the Bank receiving accolades at IBEX India 2025 for strengthening cyber security at its CSOC.

The BankRss whistleblower portal, “Cent e-Whistleblower,” continued to serve as a secure, anonymous channel for employees and directors to report malpractices. The portal, combined with regular training, reinforces a culture of openness and integrity.

While media campaigns and town hall meetings were not explicitly conducted under the vigilance banner in FY2025, the Bank maintained transparency through proactive public disclosures, compliance with listing and governance regulations, and the dissemination of financial and strategic information via multiple channels, including its multilingual website and regulatory filings. No penalties or adverse remarks were reported in relation to capital markets compliance.

Looking ahead, Central Bank of India is focused on strengthening its vigilance ecosystem through expanded training, the introduction of quarterly knowledge quizzes, and enhanced stakeholder engagement. Recognizing technology

as a key enabler of preventive vigilance, the Bank is actively working towards integrating AI and analytics into its governance practices. Future Integrated Reporting will further reflect these efforts by incorporating enhanced disclosures on risk management, non-compliance, responsible marketing, and stakeholder feedback mechanisms.

In sum, the BankRss vigilance strategy in FY2025 was marked by depth, breadth, and institutional coherence—advancing ethical standards, safeguarding stakeholder trust, and reinforcing the foundation for sustainable, transparent, and resilient banking.

Human Capital Management

At Central Bank of India (CBI), Human Capital Management (HCM) is recognized as central to driving the BankRss success and is considered the cornerstone of its operational excellence and strategic success. Investing in the BankRss people is seen as investing in its future. HCM is critical to the BankRss success and sustainability, impacting operational efficiency, customer satisfaction, and innovation.

In FY2025, the BankRss philosophy in Human Capital Management continued to focus on strategic initiatives emphasizing employee development, digital empowerment, employee engagement, and well-being. This approach is designed to foster a more inclusive, engaged, and skilled workforce that aligns with organizational goals. The initiatives in FY2025 aimed to lay a strong foundation for a more agile and resilient workforce by prioritizing leadership development, digital empowerment, and employee wellbeing. The strategic priorities for human capital development also include fostering a dynamic and engaged workforce and enhancing talent development and retention.

Achievements and Initiatives in FY2025

During FY2025, Central Bank of India implemented several key strategies and initiatives to strengthen its human capital: ^•

• Workforce Growth and Recruitment: The BankRss recruitment and promotion strategies were designed to attract top talent, promote internal growth, and ensure human resources align with strategic goals. As of 31.03.2025, the total number of employees in the bank increased to 33,081 from 31,610 in FY2024. The number of Specialist Officers hired during the year also increased to 610 from 471 in FY2024.

• Talent Development and Training: Employee

development and training programs are crucial to ensure

employees are adept at providing exceptional customer service and maintaining operational efficiency. Future initiatives for FY2025 include plans to expand training programs and further integrate digital tools. Leadership development continues to be a priority, with specific overseas training programs curated for identified General Managers (GMs), Deputy General Managers (DGMs), and Assistant General Managers (AGMs) in May 2025.

• Employee Well-being and Engagement: A strong focus was maintained on employee well-being. This commitment is reflected in initiatives such as the creation of a revolving Bereavement Fund of Rs25 Crore for the fiscal year 2024-25. Policies reviewed and approved during FY2024-25 to foster employee well-being and enhance organizational efficiency include updates to the Policy on Prevention of Sexual Harassment.

• Diversity and Inclusion: Central Bank of India ensures equal opportunities for all by implementing and rigorously monitoring the reservation policy. The Bank demonstrated its commitment to gender inclusivity with Female Workforce Participation increasing to 27.51% in FY2025 from 26.43% in FY2024. To further promote womenRss participation in leadership and inclusive growth, the Bank achieved a significant milestone by establishing 90 all-women branches nationwide.

• Workforce Development and Financial Inclusion Engagement: Initiatives were undertaken to engage human capital in enhancing financial inclusion. This included the engagement of retired personnel as consultants to deliver enriched advisory services, linking to the BankRss broader inclusion and experiencesharing strategy. Workforce development efforts in FY2025 also involved the implementation of the National Apprenticeship Promotion Scheme (NAPS), with apprentices constituting approximately 17% of the total staff, contributing to upskilling and employability. Policies reviewed/approved in FY2024-25 included the Apprenticeship Policy.

• Industrial Relations: In FY2025, harmonious

industrial relations were maintained, underscored by mutual respect and proactive communication between management and employees, facilitating a collaborative environment.

Key Performance Indicators (KPIs) in FY2025

The Bank tracks several Key Performance Indicators related

to Human Capital. A notable achievement in FY2025 was the

significant improvement in the Overall Employee Retention Rate, which increased to 98.38% in FY2025 from 87% in FY2024. This demonstrates improved job satisfaction. Female Workforce Participation also increased from 26.43% in FY2024 to 27.51% in FY2025. The total number of employees grew from 31,610 to 33,081, and the number of Specialist Officers Hired increased from 471 to 610. For these metrics, the FY2025 actuals met the target of RsIncreaseRs set for the year.

These initiatives and achievements in Human Capital Management in FY2025 reflect the BankRss commitment to creating a supportive and dynamic work environment that fosters both personal and professional growth and aligns with its vision to be a leading provider of comprehensive financial services and drive economic growth. Masterful human capital management is understood to translate to elevated employee satisfaction and retention, fuelling the BankRss longterm prosperity.

Industrial Relations

Central Bank of India remains committed to fostering a positive and collaborative workplace culture anchored in mutual respect, transparency, and open dialogue between management and employees. Sound industrial relations are regarded as a cornerstone of operational continuity and institutional stability, directly contributing to employee wellbeing and the BankRss long-term success.

During FY2025, the Bank successfully maintained harmonious industrial relations across all its operational regions. This outcome was the result of sustained engagement with employee representatives and a management philosophy centered on proactive communication and mutual respect. The BankRss approach promotes a culture of trust and cooperation, which in turn supports productivity, workplace morale, and organizational resilience.

For the year, the broader Human Capital Management framework continued to play a pivotal role in reinforcing positive workforce dynamics. Employee-focused policies—addressing well-being, inclusivity, professional development, and organizational efficiency—were reviewed and implemented, further underpinning a supportive work environment. These policies are aligned with the BankRss broader ESG commitments and responsible business conduct.

The Bank respects and supports freedom of association and collective bargaining, consistent with the Global Reporting Initiative (GRI) Standards, particularly GRI 402

(Labor/Management Relations) and GRI 407 (Freedom of Association and Collective Bargaining). Operational changes that may affect employees are communicated through established channels with appropriate notice periods, ensuring transparency and constructive engagement.

In FY2025, internal assessments confirmed that no instances of child labor, forced or involuntary labor, workplace discrimination, sexual harassment, or wage-related grievances were reported across the BankRss branches and offices. Furthermore, no complaints were received under human rights-related grievance mechanisms, reaffirming the BankRss compliance with ethical employment practices and its commitment to maintaining a safe and inclusive workplace.

The BankRss continued emphasis on maintaining cordial industrial relations reinforces its position as an employer of choice in the Indian banking sector. By nurturing a cooperative and ethical work culture, Central Bank of India remains dedicated to sustaining organizational harmony and contributing positively to the well-being of its employees and stakeholders.

Implementation of Reservation Policy

Central Bank of India (CBI) meticulously follows the Reservation Policy as prescribed by the Government of India. This policy is diligently adhered to for Scheduled Castes (SCs), Scheduled Tribes (STs), Other Backward Classes (OBCs), Economically Weaker Sections (EWSs), and Persons with Disabilities (PWDs), ensuring representation across all cadres of the workforce. The BankRss adherence to these guidelines demonstrates its commitment to promoting diversity and inclusion within the organization. By implementing and rigorously monitoring the reservation policy, the Bank ensures equal opportunities for all, reinforcing its dedication to social equity and justice.

In FY2025, the Bank continued its robust approach to implementing and monitoring the Reservation Policy. The SC/ST Cell at the Central Office is responsible for the continuous implementation, monitoring, and evaluation of the reservation policy. This cell ensures the effective execution of government policies and programs related to reservations. A Chief Liaison Officer oversees the SC/ST Cell, addressing grievances and safeguarding the interests of SC/ST/OBC employees.

Reservation rosters are meticulously maintained as per government guidelines. These rosters are regularly

updated and uploaded on the BankRss website to ensure transparency and compliance. The Roster for Year 2024 has been inspected. Regular meetings are held with Welfare Associations and internal grievance redressal committees to ensure continuous improvement and compliance. The Bank has included reservations for Economically Weaker Sections in direct recruitment as per Government of India guidelines since February 1,2019.

The meticulous implementation of the Reservation Policy is a key measure and initiative contributing to the BankRss Human Capital Management philosophy, which emphasizes employee development, digital empowerment, employee engagement, and well-being, designed to foster a more inclusive, engaged, and skilled workforce. The strategic priorities for human capital development include fostering a dynamic and engaged workforce and enhancing talent development and retention. The commitment to diversity and inclusion is further supported by initiatives such as the increase in Female Workforce Participation to 27.51% in FY2025 from 26.43% in FY2024.

The diligent implementation and monitoring of the Reservation Policy in FY2025 underscore the BankRss commitment to creating a fair and equitable working environment for all employees.

SAM and Recovery

The Bank has implemented a well-defined Recovery Policy to manage non-performing assets (NPAs) effectively. This policy covers various aspects, including monitoring NPAs, followup measures, compromise settlements, adherence to the SARFAESI Act, appointing enforcement agencies, allocating recovery portfolios, selling assets to ARCs/NARCL, and addressing cases of willful default. During the financial year 2024-25, the Bank achieved notable success in reducing Gross NPA and Net NPA.

Financial Performance (Rs in Crore)

Description	31-03-2025	31-03-2024
Cash Recovery	3,396	3,636
Upgradation	666	588
Gross NPA	9225	11,340
Net NPA	1543	3,002
Gross NPA%	3.18	4.50
Net NPA%	0.55	1.23

To further aid NPA resolution, the Bank implemented a Special One Time Settlement Scheme (2024-25). This scheme applied to NPAs/OD in SB & CD (DA3/Loss) with customer exposure up to Rs2.00 lakh as of 31 March 2024, and to all accounts classified as NPA as of the same date, including PWO/TWO accounts with customer exposure up to Rs10 crores. Additionally, an OTS Scheme under the Net Present Value (NPV) Approach was continued for all NPA accounts, regardless of security. Under these schemes, proposals amounting to Rs2,302.55 crores were settled for Rs1,462.69 crores during FY 2024-25.

The Bank also successfully transferred seven NPA accounts to NARCL/ARCs, resulting in a recovery of Rs324.97 crores (including SRs/OCD) and reducing the NPAs by Rs401.77 crores. Moreover, 43 accounts were declared as willful defaulters. Under the SARFAESI Act, the Bank conducted auctions for 3,374 properties, selling 410 properties and generating Rs338.59 crores. The Bank signed Inter-Creditor Agreements (ICA) in 15 accounts with a total outstanding amount of Rs4,625.20 crores as of 31 March 2025. The Bank has set aside a total provision of Rs3,667.86 crores for these accounts. Additionally, the Bank approved and implemented resolution plans in ten accounts in compliance with the RBI circular dated 07.06.2019. These accounts had an outstanding amount of Rs1,327.26 crores as of 31 March 2025, with a total provision of Rs364.93 crores.

To strengthen NPA resolution efforts, the Bank signed ICAs for accounts with banking exposure of Rs1,500 crores and above, following RBI guidelines. Resolution plans were duly approved and implemented in compliance with the RBI circular dated 07.06.2019. The Bank maintained close daily Monitoring of NPAs and conducted regular reviews of legal actions and SARFAESI-based recovery initiatives. Video conferences were held with field functionaries to assess progress and provide guidance. Additionally, the BankRss RO recovery team, in collaboration with branch staff, individually contacted NPA borrowers with an outstanding amount of Rs10 lakhs and above to facilitate their recovery.

Corporate Communications

The role of corporate communications with regard to publicity is vital in shaping the BankRss public image, fostering trust, and maintaining positive relationships with stakeholders. Crafting and disseminating consistent and positive messages about the BankRss mission, values, achievements, and initiatives to enhance reputation. It is our endeavor to make consistent efforts with thrust on low-cost advertising to generate public

awareness about our products and services through print, electronic/digital, outdoor and other mass communication vehicles, to enhance & sustain our brand image and to augment the business of our Bank with active engagement/ participation of field staff.

In FY2024-25, we executed a series of advertising initiatives across multiple platforms, including television, radio, print, and digital media. Our advertising campaigns focused on promoting our core banking products, innovative digital services, and our commitment to sustainability. We employed a mix of traditional and digital media to maximize our reach and impact. Television and radio ads highlighted our latest product offerings and customer success stories, while print ads in leading newspapers and magazines reinforced our brand presence and communicated our key messages. We have published 4^th Edition of History Book of the Bank titled Pillars of Prosperity- The Journey of Central Bank of India. In this book some new facts have been added.

Branding on static and moving media helps in constant hammering of brand image in the minds of public in general. Branch Branding, ATM Branding are the part of brand image of the Bank. Whenever customer enters in the Branch or the ATM he/ she finds himself in the known environment. Sponsoring the conferences, sports & cultural events of National & International repute e.g. Subroto Cup, IPL, Indian International Trade Fair, Mahakumbh Mela, Sponsorship for Tourism etc. , active participation in Government social schemes; Participation in fairs and Exhibitions popularizes our products and services. It is ensured that all publicity efforts adhere to regulatory requirements and uphold ethical standards to maintain credibility.

Community engagement is at the heart of our bankRss mission to contribute positively to the society we serve. In FY2024- 25, we launched and participated in numerous community engagement initiatives aimed at improving the quality of life for our customers and the broader community. Felicitation of Teachers / Students / Doctors / Engineers / Customers and Respectable persons of the society enhances brand value of the Bank. Sponsoring various cleaning activity programmes, expresses our commitment towards the society. Similarly sponsoring women empowerment programmes indicates our commitments towards the Nari Shakti. These sponsorships

are carefully selected to align with our commitment to social responsibility, financial literacy, and community development.

Our bankRss strategy for press releases and media engagement is designed to enhance transparency, communicate key achievements, and strengthen our brand presence. In FY

2024- 25, we focused on leveraging various media channels to reach a broad audience, ensuring that our stakeholders are well-informed about our initiatives and accomplishments. Throughout the year, we issued regular press releases to announce significant developments such as new product launches, strategic partnerships, and financial results. These press releases were distributed through major news agencies and featured prominently in leading financial publications. By maintaining a steady flow of information, we ensured that our stakeholders remained up to date with our progress and milestones. Our proactive media outreach resulted in extensive coverage across print, online, and broadcast media. We worked closely with journalists and editors to provide them with detailed information and exclusive insights, ensuring accurate and positive reporting on our activities. This collaboration with the media helped amplify our messages and reach a wider audience.

Overall, our press releases and media engagement strategies have played a crucial role in maintaining an open line of communication with the public. Our consistent media presence has significantly increased brand recognition and awareness among both existing and potential customers. Transparent and proactive communication has bolstered public perception of our bank, highlighting our commitment to innovation, sustainability, and customer satisfaction. By keeping stakeholders informed and engaged, we have strengthened their confidence in our bankRss stability and future prospects.

These community engagement efforts have strengthened our relationships with stakeholders and reinforced our reputation as a responsible and caring corporate citizen. We remain committed to expanding our community engagement activities, ensuring that we contribute to the well-being and development of the communities. Our tag line for the FY

2025- 26 is “The Year of Business Acceleration” and we are actively committed to meet the challenge.

Cent Bank Home Finance Ltd. (CBHFL)

Key Financial KPIs - Comparative Summary

(Rs in Rs000)

Metric	FY2025	FY2024	% Change YoY
Interest Income	17,59,538	16,18,906	+8.7%
Other Income	76,077	4,079	+1,765.1%
Total Income	18,35,615	16,22,987	+ 13.1%
Interest Expense	10,78,709	9,38,408	+ 14.9%
Operating Expenses	3,49,919	2,90,265	+20.5%
Net Profit (attributable to group)	2,52,914	2,51,010	+0.8%
Earnings per Share (EPS)	10.11	10.04	+0.7%
Deposits	63,38,339	58,79,083	+7.8%
Borrowings	78,06,629	76,76,657	+ 1.7%
Loan Book (Advances)	1,63,84,983	1,55,34,324	+5.5%
Total Assets	1,71,50,035	1,62,53,682	+5.5%
Net Worth (Capital + Reserves)	23,92,294	21,39,380	+ 11.9%
Capital (Equity Share Capital)	2,50,000	2,50,000	0.0%
Reserves and Surplus	21,42,294	18,89,380	+ 13.4%
Return on Assets (ROA)	1.47%	1.55%	-8 bps
Return on Equity (ROE)	10.6%	11.7%	-110 bps

Financial Performance Review - FY2025

Cent Bank Home Finance Limited (CBHFL) demonstrated stable financial performance during FY2025, marked by continued growth in its core lending operations and prudent cost management amid a volatile interest rate environment. The Company sustained its trajectory of profitability, enhanced its balance sheet strength, and maintained its focus on expanding affordable housing credit.

Income and Profitability

Total income for the year rose to Rs18,356 lakh, registering a 13.1% year-on-year increase, driven by healthy growth in both interest and non-interest income. Interest income grew by 8.7% to Rs17,595 lakh, supported by a steady expansion in the loan book and better yield management. Notably, noninterest income surged sharply to Rs761 lakh from Rs41 lakh in the previous year, aided by improved recoveries and higher miscellaneous income.

Interest expense increased by 14.9% to Rs10,789 lakh, primarily due to a higher average cost of funds, in line with the rising interest rate scenario. Operating expenses rose by 20.5% to Rs3,499 lakh, reflecting investments in personnel, compliance, and digital infrastructure. Despite the increase in cost pressures, CBHFL maintained its earnings momentum, posting a marginal 0.8% growth in consolidated profit attributable to the group, which stood at Rs2,529 lakh for FY2025. Earnings per share improved slightly to Rs10.11.

Balance Sheet Position

The CompanyRss balance sheet expanded by 5.5% to Rs17,150 million as on March 31,2025. Growth was driven by a 5.5% year-on-year increase in gross advances, which stood at Rs16,384 million, reflecting continued focus on retail and affordable housing segments. Asset quality remained largely stable, supported by disciplined underwriting and improved recoveries.

CBHFLs deposit base increased to Rs6,338 million, up 7.8% year-on-year, indicating sustained retail franchise trust and effective resource mobilization. Borrowings stood at Rs7,807 million, marginally up from the previous year, in alignment with the calibrated credit expansion strategy.

The CompanyRss net worth improved to Rs2,392 million, supported by internal accruals and retained earnings. The capital base remained stable at Rs250 million, while reserves grew by 13.4% to Rs2,142 million. As a result, the Company remains well-capitalized to pursue its medium-term growth plans.

Outlook

CBHFL remains committed to its mission of financial inclusion through housing finance for underserved segments. With a stable balance sheet, growing retail reach, and sound risk management, the Company is well-positioned to leverage upcoming opportunities in the affordable housing space. The outlook remains cautiously optimistic, with continued focus on credit quality, customer service, and digital enablement. The Company will also continue to align its operations with the strategic vision of its parent, Central Bank of India, while exploring synergies in distribution, risk management, and capital efficiency.

Centbank Financial Services Limited (CFSL)

Key Financial KPIs - Comparative Summary

Metric	FY2025 (Rs Rs000)	FY2024 (Rs Rs000)	% Change (YoY)
Revenue from Operations	99,426	30,437	+226.6%
Other Income	28,597	22,464	+27.3%
Total Income	1,28,023	52,901	+142.0%
Employee Benefit Expenses	8,424	7,172	+ 17.5%
Other Expenses	8,347	7,943	+5.1%
Depreciation & Amortisation	327	213	+53.5%
Total Expenses	17,098	15,328	+ 11.5%
Profit Before Tax (PBT)	1,10,925	37,573	+195.3%
Profit After Tax (PAT)	82,504	29,799	+176.9%
Earnings Per Share (EPS) - Basic & Diluted	1,650	596	+176.9%
Net Worth (Share Capital + Reserves)	4,47,346	3,74,842	+ 19.3%
Cash & Cash Equivalents	5,15,850	2,16,016	+138.7%
Trade Receivables (Net)	15,653	919	>1000%
Total Assets	6,32,284	5,45,335	+ 15.9%
Dividend Paid	10,000	10,000	-

Financial Performance Review - FY2025

Centbank Financial Services Limited (CFSL), a wholly- owned subsidiary of Central Bank of India, delivered a strong financial performance in FY2024-25, building on its strategic repositioning in recent years. The Company reported a notable improvement in profitability, operational efficiency, and liquidity, driven by a sharp uptick in fee-based income and disciplined cost management.

Revenue and Profitability

Total income increased significantly to Rs128.0 million in FY2025 from Rs52.9 million in the previous year, marking a growth of 142%. This surge was primarily attributable to a substantial rise in revenue from operations, which more than tripled to Rs99.4 million. Key contributors to this operational income included debenture and security trusteeship fees (Rs16.5 million), annual maintenance charges on trust portfolios (Rs54.2 million), and penalties on unclaimed income from trust accounts (Rs20.7 million). Interest income and other income also saw a healthy increase, rising to Rs28.6 million from Rs22.5 million, supported by higher fixed deposit interest and write-backs of sundry balances.

The Company posted a profit before tax (PBT) of Rs110.9 million, nearly three times higher than the previous yearRss PBT of Rs37.6 million. After providing for tax of Rs28.4 million (which includes prior year tax adjustment of Rs0.17 million), profit after tax (PAT) stood at Rs82.5 million, marking a year- on-year growth of 177%. Earnings per share (EPS) surged to Rs1,650 from Rs596 in FY2024, reflecting the enhanced earnings capacity of the business.

Expense Management

Total expenses for the year increased moderately to Rs17.1 million from Rs15.3 million in FY2024, with personnel costs comprising the bulk (Rs8.4 million). Other operating expenses remained well-contained at Rs8.3 million. Depreciation and amortisation charges rose marginally in line with asset additions. Despite the expansion in service offerings, the Company maintained a lean cost structure, achieving a sharp reduction in cost-to-income ratio.

Balance Sheet Strength

The balance sheet of CFSL remained robust and well- capitalised. ShareholdersRs funds increased to Rs447.3 million,

driven by retained earnings. The Company maintained its share capital at Rs50 million, with 100% ownership by Central Bank of India. The net worth position further strengthened due to the accretion of profits to reserves and surplus. On the liabilities side, current liabilities rose marginally, largely due to increases in TDS-related obligations and trust account balances. Long-term and short-term provisions were adjusted upward in line with actuarial valuations for employee benefits.

The Company continued to maintain a conservative asset mix with a focus on capital preservation and liquidity. Cash and cash equivalents nearly doubled to Rs515.9 million as at March 31, 2025, from Rs216.0 million in the prior year, reflecting enhanced operational cash flows and limited capital expenditure outflows. Non-current investments, primarily held in state development loans (SDLs), were retained at cost at Rs59.8 million. Trade receivables rose to Rs15.7 million, reflecting higher billing volumes, although provisions for doubtful debts were also prudently increased. Fixed and

intangible assets were maintained at modest levels, in line with the CompanyRss asset-light model.

Cash Flow Position

CFSL generated strong positive cash flows from operating and investing activities, resulting in a net cash inflow of Rs299.8 million during the year. Operating cash flow benefited from the higher profits and efficient working capital management, while investing activities included maturity of long-term deposits and interest accruals. A final dividend of Rs10 million was paid to the parent bank during the year.

Outlook

The results for FY2025 underscore CFSLs growing role as a trusted service provider in the trusteeship and capital markets domain. The sustained growth in fee income, prudent financial management, and strong cash position position the Company favourably for future growth and diversification initiatives.