Bank of India (BOI) has reported a robust performance for the first quarter of the fiscal year 2026, with a significant increase in net profit and improved asset quality. The bank's strategic focus on retail, agriculture, and MSME (RAM) sectors, coupled with prudent financial management, has contributed to its strong results.

Key Financial Highlights

• Net profit surged by 32% year-on-year to Rs 2,252.00 crore in Q1 FY26, compared to Rs 1,703.00 crore in Q1 FY25.
• Operating profit grew by 9% to Rs 4,009.00 crore.
• Global business expanded by 10.37% to Rs 15,06,000.00 crore.
• Global advances rose by 12.02% to Rs 6,72,000.00 crore.
• Non-interest income surged by 66% to Rs 2,166.00 crore.

Asset Quality Improvement

The bank witnessed a significant improvement in its asset quality:

• Gross Non-Performing Asset (NPA) ratio declined by 170 basis points to 2.92%.
• Net NPA ratio improved to 0.75%.
• Provision Coverage Ratio (PCR) increased to 92.94% from 92.11% in the previous year.
• Credit cost decreased to 0.68% from 0.85% in the previous year.

Business Growth and Deposit Performance

• Domestic gross advances increased by 11.24% year-on-year to Rs 5,65,000.00 crore.
• RAM (Retail, Agriculture, and MSME) advances grew by 16.69% to Rs 3,28,000.00 crore, constituting 58% of total domestic advances.
• Domestic deposits increased by 9.62% to Rs 7,10,000.00 crore.
• CASA (Current Account Savings Account) ratio stood at 39.88%, with an incremental growth of Rs 6,000.00 crore.

Capital Adequacy and Future Outlook

• The bank's Capital Adequacy Ratio improved to 17.39% from 16.18% in the previous year.
• Management provided guidance of 12-13% global advances growth and 10-11% deposit growth for FY26.
• Credit cost is expected to be around 0.70% for the fiscal year.
• Net Interest Margin (NIM) bottomed out at 2.55%, with guidance of 2.50-2.60% for the full year.

Strategic Initiatives

Bank of India has implemented several strategic initiatives to enhance its performance:

1. Introduction of a Repo-linked Export Credit facility in Indian Rupees for corporate borrowers.
2. Launch of the BOI Star Energy Saver vendor finance scheme to support green energy initiatives.
3. Implementation of functionality for linking pre-sanctioned credit lines to the UPI platform.
4. Roll-out of Project Saksham to improve sector-specific knowledge and develop financial solutions for cluster-based finance, particularly in the MSME segment.
5. Introduction of a new rewards and recognition policy, BOI Star Grace, to enhance employee engagement and motivation.

Challenges and Outlook

While the bank has shown strong performance, it faces challenges in the form of pressure on net interest income and margins. The management expects improvement in the coming quarters as the transmission of deposit rates takes effect and credit growth continues.

Bank of India's Managing Director and CEO, Shri Rajneesh Karnatak, expressed confidence in the bank's ability to maintain its growth trajectory and improve profitability. The bank's focus on enhancing customer experience, fortifying low-cost deposits, and sustainable credit growth is expected to drive its performance in the coming quarters.

As Bank of India navigates through the evolving economic landscape, its strategic initiatives and robust financial performance position it well for continued growth and improved shareholder value in FY26.

Bank of India (BOI) has reported a robust financial performance for the first quarter, with significant improvements in profitability and asset quality. The state-owned lender saw its net profit surge by 32.27% year-on-year to ₹2,252.00 crore for the quarter ended June 30.

Key Financial Highlights

Asset Quality Improvement

The bank witnessed a significant improvement in its asset quality metrics:

Business Growth

BOI reported strong growth across various business segments:

The bank's RAM (Retail, Agriculture, and MSME) portfolio now constitutes 58.03% of domestic advances, up from 55.32% a year ago.

Profitability and Efficiency

Capital Adequacy

As of June 30, the bank's capital position remained strong:

Digital Initiatives

Bank of India continues to focus on digital transformation:

• Over 1 crore customers onboarded through the mobile banking app "BOI Mobile Omni Neo Bank"
• Share of digital transactions increased to approximately 95.4%

Management Commentary

Rajneesh Karnatak, Managing Director & CEO of Bank of India, stated, "Our Q1 results reflect the bank's resilience and growth momentum. The significant improvement in asset quality, coupled with strong business growth across segments, positions us well for sustainable profitability. We remain committed to enhancing customer experience through our digital initiatives while maintaining a robust balance sheet."

Outlook

With its improved asset quality, strong capital position, and focus on digital transformation, Bank of India appears well-positioned to capitalize on the growing credit demand in the Indian economy. The bank's strategic emphasis on retail, agriculture, and MSME sectors is expected to drive future growth while maintaining a diversified loan portfolio.