Bank of India

Bank of India reported a resilient financial performance for FY26, with Net Profit increasing by 14% YoY to Rs. 10,527 crore. For Q4 FY26, Net Profit stood at Rs. 3,016 crore, marking a 15% YoY growth. Operating Profit for FY26 improved by 4% YoY to Rs. 17,049 crore, and for Q4 FY26, it grew 3% YoY to Rs. 5,026 crore. The bank's CRAR improved to 18.01% as on March 31, 2026, significantly above RBI's mandated 11.5%.

Global business expanded by 14.57% YoY to Rs. 16.98 lakh crore in Mar'26. This was supported by a 13.56% YoY increase in Global Deposits to Rs. 9.27 lakh crore and a 15.82% YoY rise in Global Gross Advances to Rs. 7.71 lakh crore. RAM advances showed robust growth of 19.11% YoY, reaching Rs. 3.84 lakh crore and constituting 58.74% of total advances. Domestic Gross Advances also grew by 16.10% YoY to Rs. 6.54 lakh crore.

The bank demonstrated significant improvement in asset quality, with the Gross NPA ratio reducing by 129 bps YoY to 1.98% for FY26. The Net NPA ratio also improved by 26 bps YoY to 0.56%. The Provision Coverage Ratio (PCR) strengthened to 93.57% in Mar'26 from 92.39% in Mar'25, and the slippage ratio improved to 0.83% in FY26 from 1.36% in FY25. Credit Cost also improved to 0.48% in FY26 from 0.76% in FY25.

Net Interest Income (NII) increased by 3% YoY to Rs. 25,172 crore for FY26, with Q4 FY26 NII at Rs. 6,730 crore, up from Rs. 6,063 crore in Q4 FY25. Non-Interest Income grew by 10% YoY to Rs. 9,874 crore for FY26. However, Global Net Interest Margin (NIM) compressed to 2.52% in FY26 from 2.82% in FY25, a decline of nearly 30 basis points, primarily due to the international book's lower margins (1.10% to 1.30%).

Bank of India is establishing Zonal Deposit Centres at all Zonal Offices to accelerate CASA accretion and integrated the UMANG App with its BOI OMNI NEO platform for digital services. The bank also launched Bharat Connect Biller Operating Services to streamline collections and established dedicated MSME Desk Helplines. These initiatives aim to enhance customer relationships, digital reach, and grievance redressal, alongside opening 200 new branches in FY26 and planning another 200 in FY27.

The bank is focusing on strengthening its deposit franchise, particularly CASA, which stood at 37.64% in Mar'26. Initiatives like 'Project UDAAN' and posting Resource Managers in zonal/FGM offices are aimed at garnering new CASA and retail term deposits. For advances, the strategy involves increasing MCLR advances, RAM advances, and Mid Corporate advances through 19 Emerging Corporate branches, targeting better margins and fee income. The bank aims for 62% RAM book and 38% Corporate book by March 29, with total advances reaching around 11 lakh crores.

Management expressed confidence in a smooth transition to RBI's ECL guidelines, effective April 1, 2027, expecting an impact of only 0.50% p.a. aggregating to 2.50% over five years. The bank has already engaged a 'big four' firm for transitioning and has sufficient cushion in its net worth and CRAR (18.01%) to absorb this impact. The overall impact on credit costs is expected to be not more than ten basis points on an annualized basis.

Despite forecasts of a slightly weaker monsoon (around 92%), the bank is confident in achieving 17% agricultural growth for FY27, citing improved canal networks and a focus on allied agriculture. Gold loans, which constitute 35-40% of the agriculture book, are seen as a key growth driver due to their high yield (over 9%) and minimal asset quality issues, with hardly any NPAs (around 60 crores in the entire agriculture book).