Quarterly Financial Results
Bank of India Reports 36% Jump in Q1 FY27 Profit as Business Crosses ₹17.55 Lakh Crore
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- Bank of India reported a strong start to FY27 with Net Profit rising 36.23% YoY to ₹3,068 crore, supported by healthy growth in advances, deposits and operating income.
- The bank’s global business expanded 16.57% YoY to ₹17.56 lakh crore, while asset quality continued to improve with Gross NPA falling below 2%.
- Strong growth across Retail, Agriculture and MSME (RAM) lending, improving capital adequacy and expanding digital banking adoption reinforced the bank’s operational momentum during the quarter.
PRICE-SENSITIVE TRIGGER
Event: Bank of India announced its Unaudited (Reviewed) Financial Results and Investor Presentation for the quarter ended 30 June 2026.
Type: Quarterly Financial Results
Impact: Positive
Immediate Effect: The bank delivered double-digit business growth, higher profitability and improved asset quality, reflecting continued strength in its core banking franchise despite a competitive operating environment.
Metrics:
Key Financial Metrics:
- Global Business: ₹17,55,699 crore (▲16.57% YoY)
- Global Deposits: ₹9,57,924 crore (▲14.90% YoY)
- Global Advances: ₹7,97,775 crore (▲18.64% YoY)
- Operating Profit: ₹5,051 crore (▲25.99% YoY)
- Net Interest Income (NII): ₹6,833 crore (▲12.61% YoY)
- Non-Interest Income: ₹2,579 crore (▲19.07% YoY)
- Net Profit (PAT): ₹3,068 crore (▲36.23% YoY)
- Net Interest Margin (Global): 2.52%
- Cost-to-Income Ratio: 46.33%
- Return on Assets (ROA): 1.01%
- Return on Equity (ROE): 16.12%
- Gross NPA: 1.81%
- Net NPA: 0.51%
- Provision Coverage Ratio: 93.83%
- Capital Adequacy Ratio (CRAR): 18.69%
- CET-1 Ratio: 15.97%
Highlight:
- Bank of India delivered its highest quarterly net profit in recent years while simultaneously improving asset quality, strengthening capital adequacy and expanding its global business beyond ₹17.5 lakh crore.
What Happened ?
Bank of India reported broad-based growth across its lending and deposit franchise during the first quarter of FY27. Strong expansion in Retail, Agriculture and MSME (RAM) advances supported higher interest income, while disciplined cost management and lower credit costs contributed to a significant improvement in profitability.
The bank also continued strengthening its balance sheet through lower non-performing assets, higher provision coverage and robust capital buffers, positioning it well to support future credit growth. Alongside financial performance, digital banking adoption and financial inclusion initiatives continued to gain traction during the quarter.
key details
Business Performance & Operational Highlights:
- Global business increased 16.57% YoY to ₹17.56 lakh crore.
- Global deposits grew 14.90% YoY, while global advances rose 18.64% YoY.
- Domestic advances increased 19.20% YoY to ₹6.74 lakh crore.
- Retail advances grew 20.60% YoY.
- Agriculture advances expanded 18.92% YoY.
- MSME advances increased 19.34% YoY.
- RAM portfolio grew 19.75% YoY and contributed 58.30% of domestic gross advances.
- Corporate advances rose 18.44% YoY.
- Domestic CASA deposits stood at ₹3.02 lakh crore, with a CASA ratio of 36.68%.
- Priority Sector lending remained above regulatory requirements across all major categories.
- The NBFC portfolio remained high quality, with over 96% rated AAA or AA, limiting exposure to lower-rated assets.
- Digital transactions increased to 2.08 billion, while Internet Banking users crossed 10.1 million and Mobile Banking users reached 13.9 million.
- During the quarter, the bank added approximately 3.58 lakh new PMJDY accounts, further strengthening financial inclusion initiatives.
Note:
- Growth remained diversified across retail, agriculture, MSME and corporate lending, while strong deposit mobilisation and disciplined portfolio management enabled the bank to improve profitability without compromising asset quality.
- The continued expansion of digital channels and financial inclusion initiatives further strengthened the bank’s long-term franchise.
Risk Analysis
Summary:
- Although Bank of India delivered strong operational performance during Q1 FY27, sustaining profitability will depend on maintaining asset quality, preserving margins and continuing healthy deposit mobilisation in a competitive banking environment.
Key Risks:
- CASA ratio moderated to 36.68%, requiring continued focus on low-cost deposit growth.
- Net Interest Margin remained at 2.52%, making funding costs an important monitorable.
- Future earnings remain sensitive to interest rate movements and credit demand.
- Maintaining current asset quality will be essential as loan growth accelerates.
- Competitive pressure in deposit mobilisation could influence funding costs over the coming quarters.
- Global economic uncertainty may affect credit growth across select corporate segments.
Worst Case:
- A combination of slower credit growth, higher funding costs or deterioration in asset quality could increase provisioning requirements and moderate future earnings growth despite the bank’s strong capital position.
Risk Level: Low
Company Commentary
- Global business crossed ₹17.55 lakh crore, registering 16.57% YoY growth.
- Net Profit increased 36.23% YoY, while Operating Profit rose 25.99% YoY.
- Retail, Agriculture and MSME businesses continued to drive domestic credit expansion.
- Gross NPA improved to 1.81%, while Net NPA reduced to 0.51%, reflecting continued strengthening of asset quality.
- The bank maintained a healthy Capital Adequacy Ratio of 18.69% with a CET-1 ratio of 15.97%, providing adequate capital for future business growth.
- Management reiterated its focus on profitable growth, prudent risk management, digital transformation and strengthening customer relationships across retail and corporate banking segments.
Official Exchange Filing: Bank of India Limited
