Bank of India

Bank of India implemented CTS Continuous Clearing for faster cheque processing. New products include the BOI Surya Shakti Scheme for agriculture, and a bouquet of products for Gig Workers (Star Gig Grow Loan, GIG GearUP Loan). Two new credit card variants were introduced: Celestia Credit Card (Rupay Platinum Contactless Metal) for high-end customers and Rupay Women's Credit Card. The bank also partnered with Social Foundation Trust for its CSR initiatives.

Global business grew by 12.54% YoY to Rs. 16,27,602 crore in Dec’25, with incremental growth of Rs. 1,81,000 crore. Global Gross Advances increased by 13.63% YoY to Rs. 7,40,314 crore, while Global Deposits rose by 11.64% YoY to Rs. 8.87 lakh crore. Domestic Gross Advances saw a 15.16% YoY increase to Rs. 6.29 lakh crore, with RAM advances growing 18.05% YoY to Rs. 3.68 lakh crore, constituting 58.54% of total advances.

Operating Profit increased by 13% YoY to Rs. 4,193 crore, and Net Profit grew by 7% YoY to Rs. 2,705 crore for Q3 FY26. Net Interest Income (NII) rose by 6% YoY to Rs. 6,461 crore, and Non-Interest Income surged by 30% YoY to Rs. 2,279 crore. Global NIM improved by 16 bps sequentially to 2.57%. Asset quality showed significant improvement, with Gross NPA ratio falling by 143 bps YoY to 2.26% and Net NPA ratio improving by 25 bps YoY to 0.60%. The Provision Coverage Ratio (PCR) increased to 93.60% in Dec’25 from 92.48% in Dec’24.

Domestic Deposits increased by 12.80% YoY to Rs. 7.65 lakh crore. However, the CASA ratio stood at 37.97%, with management noting a structural shift in deposits towards alternative investment avenues. The bank has actively churned its portfolio, moving away from low-yielding, Repo-linked advances to improve margins. Yield on Advances saw some compression due to 125 bps Repo rate cuts in 2025, impacting the 64% of the book linked to EBLR.

The bank is heavily investing in IT infrastructure, digital initiatives, and cybersecurity. Currently, 29 business journeys are live, with 24 on the loan side and 5 on the liability side. Automation efforts have saved approximately 50,000 man-hours during the nine months. Project Star Aditya, focusing on data lake, AI, ML, and generative AI, is generating use cases for business leads, underwriting, and control functions. About 10% of total operating expenses are allocated to IT Opex, alongside significant Capex on the IT side.

For FY26, the bank guides for global advances growth of 13-14% and global deposit growth of 11-12%. It aims to maintain a NIM of around 2.50% for FY26, targeting 2.60% for Q4. The strategy includes mobilizing low-cost deposits, accelerating high-yielding advances, and prudent credit underwriting. The bank plans to open 600 branches over FY25-27, with 50-55 remaining for Q4 FY26 and 200 approved for FY27. The international book is targeted to be 15-16% of the global advances.

The bank has calculated the potential impact of the proposed Expected Credit Loss (ECL) framework. It estimates an impact of around 2% on its CRAR, translating to Rs. 4,600-4,700 crore. However, management believes that with the bank's strong profitability, projected at around Rs. 10,000 crore for the financial year, there should not be any material impact on the CRAR. The impact is expected to be spread across five years.