Bank of India

Bank of India reported a strong Q3 FY26, with Net Profit increasing by 7% YoY to ₹2,705 crores, and Operating Profit growing by 13% YoY to ₹4,193 crores. Net Interest Income (NII) saw a 6% YoY increase, reaching ₹6,461 crores. Non-Interest Income demonstrated robust growth of 30% YoY, amounting to ₹2,279 crores. The Global Net Interest Margin (NIM) improved sequentially by 16 basis points to 2.57%.

Global business expanded by 12.54% YoY to ₹16,27,602 crores. Global Gross Advances grew by 13.63% YoY to ₹7,40,314 crores, with domestic advances contributing significantly at 15.16% YoY growth. Global Deposits increased by 11.64% YoY to ₹8.87 lakh crores, and domestic deposits grew by 12.80% YoY. However, the CASA ratio declined from 41% to near 38%, reflecting a structural shift where depositors are increasingly opting for investment avenues over traditional bank deposits.

Asset quality showed marked improvement, with the Gross NPA ratio reducing by 143 bps YoY to 2.26% and the Net NPA ratio improving by 25 bps YoY to 0.60%. The Provision Coverage Ratio (PCR) strengthened to 93.60% from 92.48% in December 2024. The slippage ratio stood at 0.16% for Q3 FY26, an improvement from 0.19% in Q3 FY25, despite a slight increase in fresh slippages this quarter to ₹1,100 crores due to one corporate road account.

The bank has launched several initiatives, including CTS Continuous Clearing, BOI Surya Shakti Scheme for agricultural financing, and new products for Gig Workers (Star Gig Grow Loan, GIG GearUP Loan). Two new credit card variants, Celestia Credit Card and Rupay Women's Credit Card, were introduced. In digital transformation, 29 business journeys are live, saving approximately 50,000 man-hours. The bank is investing 10% of its total operating expenses in IT Opex and is progressing with Project Star Aditya for data lake, AI, and ML capabilities.

Bank of India has an approved strategy to open 600 new branches over FY25-FY27, with 211 opened in FY25, 145+ in FY26 (with 50-55 remaining), and 200 planned for FY27. Management guided for global advances growth of 13-14% and global deposit growth of 11-12% for FY26. The bank aims to maintain an annualized NIM of around 2.50% for FY26 and target 2.60% for Q4 FY26, driven by a focus on low-cost deposits and high-yielding advances.

The bank's gold loan book stood at ₹47,000 crores as of December 31, 2025, with a very low NPA amount of ₹70-75 crores, yielding around 9%. Acknowledging risks from rising gold prices, the bank has increased its guardrails by reducing the Loan-to-Value (LTV) for new advances in the gold loan category to 75%, compared to an earlier 85-90%.