Mumbai: Public sector lender Bank of India (BoI) reported strong financial performance for the third quarter of FY26, posting a net profit of ₹2,705 crore and marking a significant improvement in asset quality. The bank’s global business crossed the ₹16 lakh crore milestone, highlighting its growing presence in both domestic and international markets.
Robust Business Growth Across Key Segments
Bank of India witnessed impressive year-on-year growth in its core lending operations.
- Global advances increased by 13.63%, led by a 15.16% rise in domestic credit.
- Growth in Retail, Agriculture, and MSME (RAM) segments was a standout:
- Retail: 20.64%
- Agriculture: 16.69%
- MSME: 15.77%
- Retail: 20.64%
- The RAM share now constitutes 58.54% of total advances, reflecting the bank’s strategic focus on high-potential lending sectors.
On the liability side, global deposits grew by 11.64%, with domestic deposits rising 12.80%, and a stable CASA ratio of 37.97% was maintained.
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Profitability Strengthens with Diversified Revenue Streams
BoI reported consistent profitability growth across key metrics:
- Net Profit: ₹2,705 crore, up 7% YoY
- Operating Profit: ₹4,193 crore, up 13% YoY
- Net Interest Income (NII): ₹6,461 crore
- Non-Interest Income: ₹2,279 crore, up 30% YoY, reflecting diversification beyond traditional lending
For the nine-month period (9M-FY26), the bank posted a 14% YoY increase in net profit to ₹7,511 crore, with operating profit up 4%.
Asset Quality Shows Significant Improvement
A key highlight of Q3FY26 was the strengthening of asset quality:
- Gross NPA Ratio: improved 143 bps YoY to 2.26%
- Net NPA Ratio: fell to 0.60%, a 25 bps YoY improvement
- Provision Coverage Ratio (PCR): robust at 93.60%
- Credit Cost: improved to 0.34%, highlighting effective risk management
Healthy Capital Position Supports Growth
The bank maintained a strong capital adequacy position:
- Capital Adequacy Ratio (CAR): 17.09%
- Common Equity Tier-1 (CET-1) ratio: 13.76%
This provides a solid buffer to support future credit growth and business expansion.
Strategic Focus Driving Performance
Bank of India continues to focus on long-term growth through:
- Accelerating RAM Lending: Boosting Retail, Agriculture, and MSME financing
- Prudent Risk Management: Aggressive resolution of stressed assets for a cleaner balance sheet
- Operational Efficiency: Growth in fee income and stable net interest margins
- Digital Transformation: Over 96% of transactions conducted through alternate channels; UPI users crossed 242 lakh
Market and Analyst Insights
Despite short-term stock volatility—share price down 57.67% over the past year—analysts highlight:
- A reduction in NPAs and improved PCR strengthens confidence in the bank’s balance sheet
- Crossing ₹16 lakh crore in global business signals a strong market footprint
- Focus on profitability, credit growth, and diversified income positions BoI well for sustained long-term growth
About Bank of India
Bank of India (BoI), established in 1906, is a leading public sector bank with a strong nationwide presence. The bank offers comprehensive banking and financial services including retail, corporate, SME, and agriculture lending. BoI is committed to sustainable growth, digital innovation, and financial inclusion, serving millions of customers across India and overseas.
