Central Bank of India expects over Rs 3,500 cr recovery from bad loans

State-owned Central Bank of India is aiming to mobilise over Rs 3,500 crore from recovery from bad loans as part of measures to improve its balance sheet during FY27.

“We are having about Rs 32,000 crore in technical written-off account. In FY26, the bank recovered Rs 2,270 crore from written-off loan accounts. We are expecting Rs 2,300-2,500 crore recovery from written off loans during this financial year too and it will play an important role in improvement in our bottom line,” Central Bank of India MD & CEO Kalyan Kumar told PTI in an interview. During the financial year, he said, total recovery should be anywhere between Rs 3,500 crore and Rs 4,000 crore. The bank had made total recovery of Rs 3,307 crore during financial year ended March 2026. The Mumbai-headquartered bank has launched special One Time Settlement schemes, especially for Agri accounts and also intensified recovery campaigns, including property expos and SARFAESI action. Kumar further said the bank plans to roll out wealth management and credit card business in second half of the current fiscal to ramp up its fee income. The bank has obtained board approval for the same.

“Now, we are in the process of issuing RFP (Request for Proposal) for onboarding those who are having expertise so that...we can start this business. In this year, I understand by middle of the year we should be in a position to launch this business,” he said.

Besides, he said, the bank is planning to launch other products that can improve the non-interest income.