As of June 18th 2024, Central Bank of India shares are trading at ₹65.2 with a market cap of ₹56,626 Crore. The current PE ratio is 21.2 which is even higher than HDFC Bank.
The Central Bank of India (CBI) is the new hot potato of the stock market. Do you know why? To get the answer let’s see the brief history of the CBI. Back in 2017, CBI was put under the PCA framework as a consequence of the breach of regulations set by RBI. Under the PCA framework, a bank can face many restrictions like new branch openings, dividend distributions, or in some cases, banks might need outside investors.
But last year, RBI released the Central Bank of India from the PCA framework. As a result of this release, there has been a spike in the share price targets of the CBI.
On 21st Sept, 2022 it reached Rs. 23.25. Since the news broke out, there have been talks going on about the share price targets of the Central Bank of India for the next 5 to 10 years.
Click here to learn more about the CBI release from PCA.
We can see the share price of the Central Bank of India increase in 2024 due to the bank’s strong financial performance.
Central Bank of India Q4 FY 2024-25 Financial Highlights
- Profit Growth: Central Bank of India reported a notable 41.4% increase in net profit to reach Rs 807.34 crore for the fourth quarter, with a sequential quarterly rise of 12.5%.
- Asset Quality: The bank’s gross non-performing assets (NPA) ratio remained steady at 4.50%, showing stability from the previous quarter and a significant improvement from 8.44% a year ago. The net NPA ratio also improved to 1.23%.
- Financial Health: Provision Coverage Ratio improved to 93.58%, reflecting better risk management. Net Interest Income grew by 10.34% to Rs 12,896 crore, while Net Interest Margin slightly decreased to 3.40%.
- Business Growth: Total business expanded by 10.34% to Rs 6.37 lakh crore, driven by a 15.60% increase in gross advances and a 7.16% rise in total deposits.
- Deposit Composition: CASA deposits grew to Rs 1.92 lakh crore, representing 50.02% of total deposits, indicating stable funding dynamics.
| When | Maximum Price | Minimum Price |
| June 2024 | 70.42 | 61.23 |
| July 2024 | 69.71 | 60.62 |
| August 2024 | 72.50 | 63.04 |
| September 2024 | 75.40 | 65.57 |
| October 2024 | 73.92 | 64.28 |
| November 2024 | 76.14 | 66.21 |
| December 2024 | 78.04 | 67.86 |
The share price of Central Bank of India (CBI) showed a fluctuating trend throughout 2024, ranging from a low of 60.62 to a high of 78.04 by December, reflecting varying market sentiments and financial performance over the months
| When | Maximum Price | Minimum Price |
| January 2025 | 79.60 | 61.23 |
| February 2025 | 81.65 | 62.80 |
| March 2025 | 84.83 | 65.25 |
| April 2025 | 83.17 | 63.97 |
| May 2025 | 80.74 | 62.11 |
| June 2025 | 84.38 | 64.91 |
| July 2025 | 82.72 | 63.63 |
| August 2025 | 85.28 | 65.60 |
| September 2025 | 88.27 | 67.90 |
| October 2025 | 90.56 | 69.66 |
| November 2025 | 92.82 | 71.40 |
| December 2025 | 95.15 | 73.19 |
In 2025, Central Bank of India’s share price is projected to rise steadily, ranging from a minimum of 61.23 to a maximum of 95.15 by December, reflecting strong upward momentum throughout the year.
| When | Maximum Price | Minimum Price |
| January 2026 | 98.00 | 75.38 |
| February 2026 | 100.51 | 77.32 |
| March 2026 | 104.43 | 80.33 |
| April 2026 | 102.38 | 78.76 |
| May 2026 | 99.40 | 76.46 |
| June 2026 | 103.88 | 79.90 |
| July 2026 | 101.84 | 78.34 |
| August 2026 | 104.99 | 80.76 |
| September 2026 | 108.66 | 83.59 |
| October 2026 | 111.49 | 85.76 |
| November 2026 | 114.28 | 87.90 |
| December 2026 | 117.13 | 90.10 |
| When | Maximum Price | Minimum Price |
| January 2027 | 119.48 | 91.90 |
| February 2027 | 122.54 | 94.26 |
| March 2027 | 127.32 | 97.94 |
| April 2027 | 124.82 | 96.02 |
| May 2027 | 121.19 | 93.22 |
| June 2027 | 126.64 | 97.41 |
| July 2027 | 124.16 | 95.50 |
| August 2027 | 128.00 | 98.46 |
| September 2027 | 132.48 | 101.90 |
| October 2027 | 135.92 | 104.55 |
| November 2027 | 139.32 | 107.17 |
| December 2027 | 142.80 | 109.85 |
| When | Maximum Price | Minimum Price |
| January 2028 | 145.66 | 112.04 |
| February 2028 | 149.39 | 114.92 |
| March 2028 | 155.22 | 119.40 |
| April 2028 | 152.17 | 117.06 |
| May 2028 | 147.74 | 113.65 |
| June 2028 | 154.39 | 118.76 |
| July 2028 | 151.36 | 116.43 |
| August 2028 | 156.05 | 120.03 |
| September 2028 | 161.51 | 124.24 |
| October 2028 | 165.71 | 127.47 |
| November 2028 | 169.85 | 130.65 |
| December 2028 | 174.09 | 133.92 |
| When | Maximum Price | Minimum Price |
| January 2029 | 177.58 | 136.60 |
| February 2029 | 182.13 | 140.10 |
| March 2029 | 189.23 | 145.56 |
| April 2029 | 185.52 | 142.71 |
| May 2029 | 180.12 | 138.55 |
| June 2029 | 188.22 | 144.79 |
| July 2029 | 184.53 | 141.95 |
| August 2029 | 190.24 | 146.34 |
| September 2029 | 196.90 | 151.46 |
| October 2029 | 202.02 | 155.40 |
| November 2029 | 207.07 | 159.28 |
| December 2029 | 212.25 | 163.27 |
| When | Maximum Price | Minimum Price |
| January 2030 | 216.49 | 166.53 |
| February 2030 | 222.04 | 170.80 |
| March 2030 | 230.70 | 177.46 |
| April 2030 | 226.18 | 173.98 |
| May 2030 | 219.59 | 168.92 |
| June 2030 | 229.47 | 176.52 |
| July 2030 | 224.97 | 173.06 |
| August 2030 | 231.93 | 178.41 |
| September 2030 | 240.05 | 184.65 |
| October 2030 | 246.29 | 189.45 |
| November 2030 | 252.45 | 194.19 |
| December 2030 | 258.76 | 199.04 |
People willing to invest in these stocks are recommended to invest for a longer time. People willing to invest for a shorter period can invest with a share price target of Rs. 43. Time frame is 6 months.
Whereas people investing for a longer term can expect a price of Rs. ₹142.80 by 2027 end.
However, there is always a risk factor. Please keep that in mind while investing in Central Bank of India shares. People investing should always be careful of their money and investments.
CBI does have a decent share price growth history. But even our forecast may go wrong sometimes.
You can buy CBI shares from the following brokers:
| Zerodha | Click here |
| Upstox | Click here |
| Groww | Click here |
| Angelone | Click here |
| ICICIDirect | Click here |
I personally use PayTM Money to buy and sell shares, because of the lowest brokerage fee. If you want to sign up with PayTm Money, below is the link.
Click here: Yes Bank Share price prediction.
Financial Condition of Central Bank of India: 2019 t0 2024
| Metric | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|
| Revenue (Rs. Crores) | 22,749 | 23,676 | 22,830 | 22,903 | 25,657 | 30,849 |
| Interest (Rs. Crores) | 15,935 | 16,005 | 14,543 | 13,361 | 13,905 | 17,882 |
| Expenses + (Rs. Crores) | 14,580 | 12,135 | 12,419 | 10,477 | 12,778 | 13,590 |
| Financing Profit (Rs. Crores) | -7,766 | -4,464 | -4,133 | -934 | -1,026 | -623 |
| Other Income + (Rs. Crores) | 2,416 | 3,622 | 2,994 | 2,986 | 4,164 | 4,713 |
| Depreciation (Rs. Crores) | 278 | 285 | 293 | 297 | 386 | 0 |
| Profit before tax (Rs. Crores) | -5,628 | -1,127 | -1,431 | 1,755 | 2,752 | 4,090 |
| Tax % | 0% | 0% | 30% | 38% | 39% | 37% |
| Net Profit + (Rs. Crores) | -5,611 | -1,252 | -995 | 1,083 | 1,688 | 2,677 |
| EPS (Rs.) | -13.88 | -2.20 | -1.70 | 1.24 | 1.93 | 3.07 |
| Dividend Payout % | 0% | 0% | 0% | 0% | 0% | 0% |
Over the span of 2019 to 2024, Central Bank of India displayed varying financial dynamics marked by both challenges and growth. Revenue climbed steadily from Rs. 22,749 crores to Rs. 30,849 crores, indicating consistent operational expansion. Despite increasing interest expenses, the bank effectively managed overall costs. Improvement in financing profit, moving from a significant deficit of Rs. 7,766 crores to a more manageable deficit of Rs. 623 crores by 2024, underscored enhanced cost control measures.
Additionally, steady growth in other income bolstered profitability. The bank achieved a turnaround in profitability, with profit before tax becoming positive in 2022 and reaching Rs. 4,090 crores by 2024, reflecting strengthened financial resilience and performance.
FAQs
What are PCA frameworks?
PCA stands for Prompt Corrective Action. This framework is a set of restrictions set by the RBI against the banks breaching the regulations of banking in India.
The CBI share price target for 2025 says that the maximum could be ₹95.15 in the month of December 2025, and a minimum of ₹61.23 in the month of May 2025.
The Central Bank of India’s share price target suggests it could reach ₹258.76 by the year 2030.
Central Bank of India’s stock price can definitely reach 100 INR before 2030.
Bank of India vs Canara Bank: Which is more undervalued?
According to the PE ratio, the Bank of India is much cheaper than the Central Bank of India and could give better results in the short and long term.
Should you buy Central Bank of India stock in 2024?
In summary, the current market dynamics surrounding Central Bank of India (CBI) shares depict an encouraging narrative for prospective investors. The gradual emergence from regulatory constraints, coupled with a robust financial performance, underscores the bank’s resilience and potential for growth. As investors weigh their options, the evolving landscape of CBI shares presents an intriguing opportunity for those with a long-term investment horizon. While prudent risk management remains essential, CBI’s trajectory suggests a journey marked by potential rewards for those who choose to embark upon it. Thus, amidst the fluctuations and uncertainties of the market, CBI emerges as a beacon of possibility, inviting investors to partake in its journey towards prosperity and value creation.
Disclaimer: I have zeroed down my holdings in the Central Bank of India as prices surged.
What did we learn?
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