News Earnings Bank of India Reports Strong Q3FY26 Performance with 13.63% Advance Growth and Improved Asset QualityBank of India Reports Strong Q3FY26 Performance with 13.63% Advance Growth and Improved Asset Quality
Bank of India reported strong Q3FY26 results with global advances growing 13.63% YoY to Rs.7,40,314 crore and net profit increasing 7% to Rs.2,705 crore. The bank maintained robust asset quality with gross NPA ratio improving to 2.26% and CRAR strengthening to 17.09%. New product launches included solar financing schemes and gig worker loans, while the bank provided FY26 guidance of 13-14% advance growth and 11-12% deposit growth.
*this image is generated using AI for illustrative purposes only.
Bank of India delivered a strong performance in Q3FY26, demonstrating robust growth across key business metrics while maintaining improved asset quality. The bank's comprehensive results showcase balanced expansion in both advances and deposits, supported by strategic initiatives and prudent risk management.
Financial Performance Highlights
The bank's financial metrics reflected strong operational performance during the quarter:
| Metric | Q3FY26 | Q3FY25 | YoY Growth |
|---|---|---|---|
| Net Profit | Rs.2,705 crore | Rs.2,517 crore | +7% |
| Operating Profit | Rs.4,193 crore | Rs.3,703 crore | +13% |
| Net Interest Income | Rs.6,461 crore | Rs.6,070 crore | +6% |
| Non-Interest Income | Rs.2,279 crore | Rs.1,747 crore | +30% |
Global Net Interest Margin (NIM) improved sequentially by 16 basis points to 2.57% in Q3FY26, reflecting the bank's focus on optimizing its asset-liability mix and portfolio management strategies.
Business Growth Momentum
Bank of India achieved significant growth across its business segments:
| Business Segment | Dec'25 | Dec'24 | YoY Growth |
|---|---|---|---|
| Global Business | Rs.16,27,602 crore | Rs.14,46,295 crore | +12.54% |
| Global Gross Advances | Rs.7,40,314 crore | Rs.6,51,507 crore | +13.63% |
| Global Deposits | Rs.8.87 lakh crore | Rs.7.94 lakh crore | +11.64% |
| Domestic Gross Advances | Rs.6.29 lakh crore | Rs.5.46 lakh crore | +15.16% |
| Domestic Deposits | Rs.7.65 lakh crore | Rs.6.79 lakh crore | +12.80% |
The Retail, Agriculture and MSME (RAM) segment showed particularly strong performance, with advances increasing 18.05% YoY from Rs.3.12 lakh crore to Rs.3.68 lakh crore, constituting 58.54% of total advances.
Asset Quality Improvement
The bank demonstrated continued improvement in asset quality parameters:
| Asset Quality Metric | Q3FY26 | Previous Period | Improvement |
|---|---|---|---|
| Gross NPA Ratio | 2.26% | 3.69% (YoY) | -143 bps |
| Net NPA Ratio | 0.60% | 0.85% (YoY) | -25 bps |
| Slippage Ratio | 0.16% | 0.19% (YoY) | -3 bps |
| Provision Coverage Ratio | 93.60% | 92.48% (YoY) | +112 bps |
| Credit Cost | 0.34% | 0.39% (YoY) | -5 bps |
The bank's Capital Adequacy Ratio (CRAR) strengthened to 17.09% as of December 31, 2025, compared to 16.00% in the previous year, reflecting improved capital position.
Strategic Initiatives and Product Launches
Bank of India introduced several new products and services during the quarter:
Solar and Agriculture Focus:
- BOI Surya Shakti Scheme for solar irrigation systems, cold storage, and agri-processing facilities
- Enhanced focus on allied agriculture and food processing segments
Gig Economy Products:
- Star Gig Grow Loan for MSME requirements of registered gig workers
- GIG GearUP Loan for retail financing needs of gig workers
- Interest rates ranging from 9.5% to 10.5% with loan amounts up to Rs.5 lakh for SME segment
Credit Card Variants:
- Celestia Credit Card (Rupay Platinum Contactless Metal Card) for premium customers
- Rupay Women's Credit Card with features specifically designed for women
Deposit Composition and Strategy
The bank's deposit portfolio showed the following composition:
| Deposit Type | Amount/Ratio | Growth/Change |
|---|---|---|
| CASA Deposits | Rs.2.90 lakh crore | +Rs.12,430 crore YoY |
| CASA Ratio | 37.97% | Decline from previous levels |
| Bulk Deposits | 15% of total deposits | Increased from 13.50% |
| Retail Term Deposits | 85% of domestic deposits | +14% YoY growth |
Technology and Digital Transformation
The bank continued its digital transformation journey with significant investments:
- 29 digital business journeys now live (24 loan-focused, 5 liability-focused)
- Implementation of CTS Continuous Clearing for faster cheque processing
- Project Star Aditya for data analytics, AI, and machine learning capabilities
- Automation initiatives saving approximately 50,000 man hours in nine months
- IT expenditure representing 10% of total operating expenses
Forward Guidance and Outlook
Management provided guidance for FY26:
| Parameter | FY26 Guidance |
|---|---|
| Global Advances Growth | 13-14% |
| Global Deposit Growth | 11-12% |
| NIM Target (Q4FY26) | Around 2.60% |
| Annual NIM (FY26) | Around 2.50% |
The bank expects to maintain its growth trajectory while focusing on mobilizing low-cost deposits, accelerating high-yielding advances growth, and maintaining prudent credit underwriting standards. Recovery targets include Rs.7,200-7,300 crore for the full year, with written-off account recoveries targeted at Rs.3,000 crore annually.
Source:
Historical Stock Returns for Bank of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.56% | +4.75% | +19.73% | +47.91% | +60.46% | +241.16% |
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