Bank of India Q1FY27 net profit rises 36% to ₹3,068 crore
Bank of India reported a 36.23% YoY increase in Q1FY27 net profit to ₹3,068 crore, supported by a 12.61% rise in NII and improved asset quality. Global business expanded 16.57%, with RAM advances growing 19.75% to constitute 58.30% of domestic advances.
*this image is generated using AI for illustrative purposes only.
Bank of India reported a robust start to FY27, with standalone net profit surging 36.23% year-on-year (YoY) to ₹3,068 crore in the quarter ended June 30, 2026. The public sector lender’s profitability expansion was underpinned by a 12.61% rise in net interest income (NII) to ₹6,833 crore and a 19.07% jump in non-interest income to ₹2,579 crore. Operating profit climbed 25.99% YoY to ₹5,051 crore, while the cost-to-income ratio (CIR) improved by 498 basis points (bps) to 46.33%, signaling enhanced operational efficiency.
Profitability and Income Growth
The bank’s total revenue from operations, reflected in its operating profit, saw significant growth as both interest and fee-based incomes expanded. Return on Assets (ROA) increased by 19 bps YoY to 1.01%, while Return on Equity (ROE) jumped by 257 bps to 16.12%. These metrics indicate a strengthening return profile for shareholders amidst higher earnings.
| Metric | Q1FY27 | Q1FY26 | YoY Change |
|---|---|---|---|
| Net Profit | ₹3,068 Cr | ₹2,252 Cr | +36.23% |
| Operating Profit | ₹5,051 Cr | ₹4,009 Cr | +25.99% |
| Net Interest Income | ₹6,833 Cr | ₹6,068 Cr | +12.61% |
| Non-Interest Income | ₹2,579 Cr | ₹2,166 Cr | +19.07% |
Asset Quality and Capital Adequacy
Asset quality metrics demonstrated marked improvement, with the Gross Non-Performing Asset (GNPA) ratio declining by 111 bps YoY to 1.81% from 2.92%. Absolute GNPA fell by 26.41% YoY to ₹14,454 crore. Similarly, the Net NPA ratio improved by 24 bps to 0.51%, with absolute NNPA dropping 18.81% to ₹4,019 crore. The slippage ratio also tightened by 9 bps to 0.24%.
Capital adequacy remained strong, with the Capital to Risk-Weighted Assets Ratio (CRAR) rising to 18.69%, supported by a Common Equity Tier 1 (CET-1) ratio of 15.97%. The Provision Coverage Ratio (PCR) stood at 93.83% as of June 2026.
Business Growth and Advances
Global business expanded by 16.57% YoY to ₹17,55,699 crore. Global deposits grew by 14.90% to ₹9,57,924 crore, while global advances rose by 18.64% to ₹7,97,775 crore. Notably, Retail Asset Management (RAM) advances grew by 19.75% YoY to ₹3,92,833 crore, constituting 58.30% of domestic gross advances. Domestic CASA ratio held steady at 36.68%, with domestic CASA deposits increasing 7.18% YoY to ₹3,02,085 crore.
What the Numbers Show
The divergence between the 12.61% growth in NII and the 36.23% surge in net profit highlights the impact of cost discipline and lower provisioning requirements due to improved asset quality. With GNPA ratios falling significantly below previous levels and RAM advances nearing 60% of the loan book, Bank of India is successfully transitioning towards a higher-quality, retail-led asset mix while optimizing its cost structure.
Historical Stock Returns for Bank of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.30% | -0.50% | -1.31% | -10.67% | +25.96% | +96.04% |
How sustainable is the current 46.33% cost-to-income ratio given the bank's aggressive digital transformation and branch network optimization plans for FY27?
What specific strategies is Bank of India employing to maintain its retail asset growth momentum while managing credit risk in a potentially slowing economic environment?
Could the significant improvement in asset quality and capital adequacy (CRAR at 18.69%) enable Bank of India to accelerate dividend payouts or pursue strategic acquisitions in the near term?
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