Bank of India delivered a strong Q3 FY26, marked by robust credit and deposit growth, significant improvement in asset quality metrics, and expanded Net Interest Margins. Despite a decline in the CASA ratio and a slight increase in fresh slippages attributed to specific corporate accounts, the bank remains confident in its growth trajectory and ability to manage risks, supported by strategic initiatives and a healthy corporate pipeline.
vs Q4 FY26
| Metric | Value | YoY |
|---|---|---|
| Global Gross Advances | ₹7.4L Cr | +13.6% YoY |
| Net Profit | ₹2.7K Cr | +7.0% YoY |
| Global NIM | 2.57% | — |
| Gross NPA Ratio | 2.26% | -1.4% YoY |
| Net NPA Ratio | 0.6% | -0.3% YoY |
| CRAR | 17.09% | +1.1% YoY |
| Metric | Latest | Trend |
|---|---|---|
| Global Business(crores) | 1698000 | |
| Global Deposits(crores) | 853000 | |
| Net Profit(crores) | 10527 | |
| Global NIM | 2.52% | |
| Gross NPA Ratio | 1.98% | |
| Net NPA Ratio | 0.6% |
| Category | Target | Priority |
|---|---|---|
| Profitability | NIM→around 2.50% | High |
| Profitability | NIM→around 2.60% | High |
| Credit Growth | Corporate Pipeline→₹65,000 crore | High |
| Credit Growth | Sakti (SME) Book Size→₹500-1,000 crore | Medium |
| Branch Expansion | New Branches→600 branches | High |
| Recovery | Total Recovery→₹7,200-7,300 crore | High |
| Recovery | Written-off Account Recovery→₹3,000 crore | High |
| # | Metric | |
|---|---|---|
| 01 | Slippage Ratio and SMA-2 Trend | |
| 02 | Corporate Pipeline Disbursement | |
| 03 | NIM Trajectory | |
| 04 | Recovery from Written-off Accounts | |
| 05 | Progress on Digital Journeys and IT Investments |
| Severity | Risk |
|---|---|
low | Global uncertainty and geopolitical tensions Calendar year 2025 marked by significant global uncertainty and heightened geopolitical tensions, potentially impacting global GDP growth. Management |
medium | CASA ratio decline and deposit pressure CASA ratio declined from 41% to near 38% YoY due to structural shifts where depositors are parking funds in alternative investment avenues, creating pressure on low-cost deposits. Management |
medium | Increase in fresh slippages Fresh slippages increased by ₹200 crores to ₹1,100 crores this quarter, primarily due to one corporate road account, though overall SMA has reduced. Management |
medium | Doubling of SMA-2 accounts SMA-2 figures doubled from ₹2,020 crores to ₹4,120 crores, largely due to three State Government accounts which are being monitored for potential delinquency. Analyst |
low | Gold loan portfolio risk due to rising prices Rising gold and commodity prices may pose a risk to gold loan valuations, leading the bank to increase guardrails by reducing Loan-to-Value (LTV) to 75%. Management |
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%.