Mumbai: State-owned Central Bank of India is targeting recovery of more than Rs 3,500 crore from stressed and bad loan accounts during FY27. The bank believes stronger recoveries will help improve profitability and further strengthen its financial position.
Managing Director and Chief Executive Officer Kalyan Kumar said the bank currently has around Rs 32,000 crore in technically written-off accounts. Recoveries from these accounts remain a major focus area for the lender.
Focus on Written-Off Loan Accounts
During FY26, the bank recovered Rs 2,270 crore from written-off loan accounts. For the current financial year, it expects recoveries from these accounts to remain in the range of Rs 2,300 crore to Rs 2,500 crore.
According to Kumar, recoveries from written-off accounts play an important role in improving the bank’s bottom line because any amount recovered directly supports profits.
The bank's total recovery during FY26 stood at Rs 3,307 crore. It now aims to increase that figure to between Rs 3,500 crore and Rs 4,000 crore during FY27.
Special Measures to Boost Recoveries
To achieve its recovery targets, the bank has launched special One-Time Settlement (OTS) schemes, particularly for agriculture-related loan accounts.
It has also intensified recovery efforts through property expos and actions under the SARFAESI Act, which allows banks to recover dues from defaulting borrowers by taking possession of secured assets.
New Businesses to Increase Fee Income
Apart from recoveries, Central Bank of India is working on expanding its fee-based income.
The bank has received board approval to enter the wealth management and credit card businesses. It plans to launch both services during the second half of FY27 after selecting expert partners through a Request for Proposal (RFP) process.
Corporate Banking Push
The lender is also developing cash management services for corporate clients and expects to launch the product by August.
In addition, it is expanding its forex, Letter of Credit (LC), and Letter of Guarantee (LG) services. Initially, the bank will target its existing corporate customers who currently use these facilities through other banks.
Strong Dividend Payout
Central Bank of India recently declared a fourth interim dividend of 6 percent for FY26. With this, the total interim dividend for the year reached 12 percent.
The total dividend payout to the Government of India stood at Rs 969.64 crore, reflecting the bank’s improved profitability and stronger financial performance.
