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Central Bank of India Targets ₹1.1 Lakh Crore Gold Loan Book by September 2027
- •Central Bank of India plans to more than double its gold loan portfolio to ₹1.1 lakh crore by September next year, focusing on higher-yield lending to boost profitability.
- •Managing Director & CEO Kalyan Kumar stated that the bank expects net interest margins to remain above 3% driven by deployment into high-yielding segments like gold loans.
- •The bank recently raised $926 million through FCNR(B) deposits, providing sufficient liquidity to support a comfortable 75% credit-deposit ratio.
- •With 61% of the loan book linked to repo rates, the bank believes rate hikes will support lending yields while deposit repricing happens with a lag.
- •The lender aims to leverage its strong branch network in southern India and a newly established dedicated gold loan cell to drive this expansion.
Key Questions Answered
The Central Bank of India aims to more than double its gold loan portfolio, targeting an increase to ₹1.1 lakh crore by September next year as part of its focus on higher-yield lending. This expansion will raise the current gold loan book—which stands at approximately ₹41,000 crore—through a dedicated vertical and branch network expansion.
The bank raised $926 million, which amounts to approximately ₹8,800 crore, through FCNR(B) deposits to provide additional liquidity and support its credit growth. Furthermore, the lender reported nearly 30% year-on-year credit growth alongside a comfortable 75% credit-deposit ratio.
Central Bank of India expects its net interest margin (NIM) to remain above 3% as it deploys fresh funds into high-yielding segments like gold loans and benefits from repo-linked lending rates. Despite strong credit expansion, the bank retained its guidance of 14-16% advance growth and 10-12% deposit growth.
