New Delhi: State-owned Central Bank of India said in a regulatory filing on Tuesday that ICRA Limited, a rating agency has assigned credit ratings for various bonds. The rating agency has assigned "[ICRA]AA- (Stable)" for Basel III Tier II bonds worth Rs 2,000 crores. Further, the filing noted that the rating was upgraded from [ICRA]A+(Positive).

The filing also said that ICRA assigned "[ICRA]AA- (Stable)" to Basel III Tier II bonds worth Rs 1,500 crores and "[ICRA]A+ (Stable)" to Basel III Tier I bonds worth Rs 1,000 crores.

Rationale of the ratings assigned to the bank

Central Bank of India receives an upgraded long-term rating due to enhanced capitalisation and solvency. Exit from RBI's PCA framework fuels growth, boosting the credit-to-deposit ratio and operating profitability. Sovereign ownership, government support, and declining net non-performing advances contribute to the positive rating. CBI's established deposit franchise, strong CASA base, and competitive cost of funds also play a role. However, asset quality concerns and stressed exposures in the corporate book remain monitorable. Lower credit costs are expected to improve the return on assets. A stable outlook predicts continued profitability, improved asset quality, and regulatory capital compliance.

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