The offer-for-sale of Central Bank of India on Friday was over-subscribed by 2.35 times, as non-retail investors showed optimism. With this, the government has decided to exercise green shoe option and thus 8 per cent of its stake is being offloaded.
The offer price is Rs 31, while share prices closed at Rs 31.30 on Friday, which is over 7 per cent lower than the previous closing.
“Offer for Sale in Central Bank of India received an enthusiastic response from investors and was over-subscribed 2.35 times on the first day. Government has decided to exercise the entire green shoe option,” Secretary in the Department of Investment and Public Asset Management (DIPAM), Arunish Chawla, said in a social media post. Further, he said that retail investors and employees get to bid on Monday 25th May 2026.
This is the first offer-for-sale (OFS) in a public sector institution during the current fiscal year. At the floor price, government can earn over ₹2,244 crore. Sale of the entire 8 per cent will bring down the government’s stake to 81.27 per cent. This means another 6.27 per cent will be required to be sold to meet the minimum public shareholding norm, as suggested by the market regulator, SEBI.
Standalone net profit down 30% in Q4
On April 30, the bank reported a 30 per cent year-on-year (y-o-y) decline in fourth quarter (Q4FY26) standalone net profit at ₹724 crore against ₹1,034 crore in the year-ago quarter, as it took a one-time impact of recognition of Deferred Tax Asset (DTA). The one-time impact of DTA recognition at about 25 per cent as against about 35 per cent amounted to ₹632 crore. In FY26, the public sector bank’s standalone net profit was up about 15 per cent y-o-y at ₹4,369 crore (₹3,785 crore in FY25).
The bank’s board approved a fourth interim dividend of ₹0.60 per equity share having face value of ₹10 each for FY26. The board also approved a capital raising plan for FY27 aggregating to ₹7,000 crore via equity and debt.
Net interest income (difference between interest earned and interest expended) in the reporting quarter was up 18 per cent y-o-y at ₹4,002 crore (₹3,399 crore in the year ago period). Other income, including fee-based income, treasury income and recovery in written-off accounts, declined 33 per cent y-o-y to ₹1,150 crore (₹1,714 crore).
Loan loss provisions declined 22 per cent y-o-y to ₹647 crore (₹830 crore). The net interest margin declined to 3.07 per cent against 3.40 per cent in the year-ago period. GNPAs position improved to 2.67 per cent of gross advances as at March-end 2026, against 3.18 per cent as at March-end 2025. Net NPAs position, too, improved a shade to 0.49 per cent of net advances, against 0.55 per cent.
Gross advances increased 19 per cent y-o-y to ₹34,4516 crore as at March-end 2026, mainly on the back of a 21 per cent growth in RAM advances and 14.50 per cent growth in corporate advances. Total deposits rose 13.38 per cent y-o-y to stand at 4,67,922 crore as at March-end 2026. Low-cost CASA (current account, savings account) deposits declined to 47.30 per cent of total deposits, against 48.91 per cent in the year-ago quarter.
Published on May 22, 2026