Mumbai, June 10 -- ICRA stated that the upgrade in the long-term ratings of Central Bank of India (CBI) factors in the sustained improvement in itssolvency1 profile, capital position and profitability levels, in line with ICRA's expectations.

The bank's asset quality also improved with the reduction in the fresh non-performing advances (NPA) generation rate and the legacy stressed assets. Though the bank increased its provision coverage ratio (PCR) and undertook additional provisioning on the standard restructured book, credit costs declined, leading to higher profitability in FY2025.

CBI's capital profile was further strengthened by the capital raise of Rs. 1,500 crore in FY2025.

The ratings continue to factor in CBI's sovereign owner...