Bank of India delivered impressive financial results for the September quarter, with net profit rising 25.34% year-on-year to ₹3,202 crore compared with ₹2,555 crore in the corresponding period last year. According to reports from Business Standard, the public sector lender demonstrated robust growth across key metrics, with net interest income increasing 18.52% to ₹7,007 crore from ₹5,912 crore a year earlier. Other income, comprising commission income and fees, rose 24.77% year-on-year to ₹2,770 crore (₹2,220 crore), mainly due to recovery in written-off accounts and profit from exchange transactions soaring 190.21% to ₹978 crore from ₹337 crore a year earlier. Operating profit grew at an even faster pace of 33.2% year-on-year to ₹5,089 crore from ₹3,821 crore, indicating strong operational efficiency improvements.
Bank of India has not made any provisions under the expected credit loss (ECL) framework yet and plans to begin front-loading them from the December quarter, as announced by MD and CEO Rajneesh Karnatak during the bank's post-results analyst call on October 23. The bank expects to make these provisions in the December and March quarters, ahead of the new framework taking effect from April 1, 2027. The bank is currently working on ECL-related calculations, technology requirements, and other preparatory measures, with a consultant already onboarded. Karnatak said the bank would seek board approval for its preparedness and provisioning plan before beginning the exercise, with the bank expecting the transition to affect its capital adequacy ratio by around 0.5% annually over the next four years. The bank's CRAR stood at more than 17% as of September 30, compared with the regulatory requirement of 11%.
The bank reported significant improvements in asset quality during the quarter, with both gross and net non-performing asset ratios declining sequentially. As reported by Business Standard, gross NPAs position improved to 1.60% of gross advances as at September-end 2026 against 1.81% in June 2026 and 2.54% as at September-end 2025, while net NPAs position too improved to 0.42% of net advances against 0.51% and 0.65% respectively. The provision coverage ratio rose to 94.45% in September 2026 from 93.83% in June 2026 and 93.39% a year earlier, with the slippage ratio at 0.15% and credit cost at 0.12%. However, provisions rose 49.05% year-on-year to ₹1,887 crore against ₹1,266 crore, reflecting increased provisioning requirements. Fresh slippages during the quarter stood at ₹1,160 crore against ₹1,778 crore in the previous quarter and ₹887 crore a year ago.
Bank of India expects its global net interest margin (NIM) to rise to around 2.55% in H2 FY27 from 2.47% in the September quarter, as lending rates reprice faster than deposit costs following the Reserve Bank of India's 25-basis-point repo rate hike. As reported by Mint, 66% of the bank's advances are linked to external benchmarks, allowing it to pass on the latest rate increase immediately, while deposit rates are expected to reprice more slowly, with around 60% of the bank's term deposits in the 12–18 month maturity bucket. The bank's domestic NIM was above 2.70%, while the international book, which accounts for about 15% of the bank's overall book, had a NIM of around 1.14%. Management noted that "with this cushion around, in the next 2 to 3 quarters there should definitely be some improvement in the NIMs for the banks." The global NIM moderated 5 bps quarter on quarter to 2.47% due to balance-sheet dilution from $2.2 billion in FCNR(B) deposits with matched overseas leverage.
Bank of India's global business demonstrated strong momentum, growing 21.13% year-on-year to ₹18.93 trillion as of September 2026. According to Business Standard, global advances increased 20.58% to ₹8.55 trillion, while global deposits rose 21.59% to ₹10.38 trillion. Domestic advances rose 17.84% to ₹7.04 trillion, with low-cost CASA deposits declining to 34.16% of domestic deposits from 39.39% a year earlier. Retail credit rose 19.27% year-on-year to ₹1.74 trillion, MSME advances increased 20.27% to ₹1.18 trillion, and agriculture credit grew 16.34% to ₹1.21 trillion. The RAM (retail, agriculture and MSME) portfolio grew 18.68% year-on-year and accounted for 58.63% of total advances. Within retail, home loans rose 17% to ₹85,080 crore and vehicle loans rose 19% to ₹26,349 crore. For FY27, the bank expects global advances to grow by 15-16% and global deposits by 16-17%. The management reiterated its FY27 guidance of 15-16% advance growth and 16-17% deposit growth.
Rajneesh Karnatak, MD & CEO, outlined the bank's strategic direction for the remainder of FY27, stating that "as we progress through the second half of FY27, the emphasis will be on strengthening the bank's competitive position, deepening customer relationships, and leveraging emerging opportunities across the banking landscape." As reported by Business Standard, the bank continues to strengthen its digital presence, with internet banking platform Omni Neo having more than 1.11 crore users as of September 2026, while mobile banking users exceeded 1.49 crore. Digital transactions rose 25% year-on-year to 2.21 billion in September 2026. Regarding NIM outlook, Karnatak noted that "presently our NIM is 2.47%, but if you see the domestic NIM, it is well above 2.70%. For Bank of India, we have a large international presence, we are present in 15 countries, and 15% of our book is international. The NIM in the international book as on 30th September is somewhere around 1.14%, because of which the blended global NIM comes to 2.47%." The bank expects to provide clearer ECL estimates during its December-quarter results presentation, after obtaining board approval.
