The Central Bank of India (CBoI) is planning to improve its operational efficiency by targeting a cost-to-income (C-I) ratio of below 50 per cent in FY25, compared to 58.18 per cent in FY2024.

The public sector bank’s MD & CEO MV Rao said the Bank has implemented various strategies, including streamlining processes, optimising resource allocation, and implementing cost-saving measures.

“These initiatives are designed to enhance profitability while maintaining high service standards.

“The Bank’s efforts to control costs are evident in its consistent performance and strategic focus on operational efficiency,” Rao said in the Bank’s latest annual report.

C-I ratio is the ratio of the bank’s operating expenses as a percentage of the sum of net-interest income and other operating income.

The Bank, whose total business increased by 10.34 per cent year-on-year to ₹6,36,756 crore as at March-end 2024, said it has adopted balance sheet strategies to optimise resource allocation and improve profitability.

CBoI, which recorded its highest-ever net profit of ₹2,549 crore in FY2024, expects a reduction in gross non-performing assets (NPA) through planned initiatives focused on resolving stressed assets.

“By actively managing and resolving these assets, the Bank aims to strengthen its balance sheet and improve overall asset quality.

“The gross NPA ratio stood at 4.50 per cent (as at March-end 2024), slightly above the target range of 4 to 4.25 per cent, while the net NPA was well-controlled at 1.23 per cent,” per the report.

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