Bank of India announced its unaudited financial results for the third quarter ended December 31, 2025, demonstrating strong operational performance and continued business growth. The bank achieved significant milestones in both profitability and asset quality metrics during the quarter.

Financial Performance Highlights

The bank's financial performance for Q3FY26 showed consistent growth across key parameters. Net profit for the quarter reached ₹2,705 crores, marking a 7.47% increase compared to ₹2,517 crores in Q3FY25. For the nine-month period (9M-FY26), net profit grew by 14% year-on-year to ₹7,511 crores, indicating sustained profitability momentum.

Operating profit for Q3FY26 increased by 13.24% year-on-year to ₹4,193 crores, while for 9M-FY26, it grew by 4% to ₹12,023 crores. Non-interest income showed remarkable growth of 30% year-on-year for Q3FY26, reaching ₹2,279 crores.

Business Growth and Balance Sheet Expansion

Bank of India achieved a significant milestone as its global business crossed ₹16 lakh crores, reaching ₹16,27,602 crores with a growth rate of 12.54% year-on-year. Global advances registered strong growth of 13.63% year-on-year, totaling ₹7,40,314 crores. Domestic advances outperformed with 15.16% year-on-year growth, while overseas advances grew by 5.70% year-on-year.

The retail, agriculture, and MSME (RAM) segment continued to drive growth, with RAM advances increasing by 18.05% year-on-year. The RAM percentage share in total advances improved to 58.54%, reflecting the bank's focus on priority sector lending.

Asset Quality Improvement

Asset quality metrics showed substantial improvement across all parameters. The Gross NPA ratio declined significantly to 2.26% as of December 31, 2025, representing an improvement of 143 basis points year-on-year from 3.69% in the previous year. Net NPA ratio improved to 0.60%, down by 25 basis points year-on-year.

Provision Coverage Ratio (PCR) improved by 112 basis points year-on-year to 93.60%, indicating stronger provisioning buffers. The slippage ratio for 9M-FY26 improved by 36 basis points year-on-year to 0.64%, while credit cost for the nine-month period improved by 30 basis points to 0.42%.

Capital Adequacy and Digital Banking

The bank maintained robust capital adequacy with Capital Adequacy Ratio (CAR) at 17.09% as of December 31, 2025, well above regulatory requirements. This represents an improvement of 109 basis points year-on-year, providing adequate capital buffer for future growth.

In digital banking initiatives, the bank added over 7 lakh customers during Q3FY26, bringing total UPI customers to over 242 lakh. The share of alternate channels in total transactions increased to approximately 96% in Q3FY26, demonstrating successful digital transformation efforts.

Profitability Ratios and Margins

Net Interest Margin (NIM) for domestic operations stood at 2.80% for Q3FY26, while global NIM was 2.57%. For the nine-month period, domestic and global NIMs were 2.76% and 2.51% respectively. Return on Assets (ROA) and Return on Equity (ROE) for Q3FY26 increased to 0.96% and 15.34% respectively, indicating improved efficiency in asset utilization and shareholder returns.

India's Reserve Bank conducted buy-sell USD/INR foreign exchange swaps across multiple maturities on Wednesday, according to market traders, in operations aimed at managing system liquidity. The intervention reflects the central bank's active approach to currency market management amid ongoing rupee volatility.

Swap Operations Details

The Reserve Bank of India executed swap transactions across several maturity periods, as reported by banking sources and foreign exchange brokers. The operations covered multiple timeframes to provide comprehensive liquidity management.

Market Context and Intervention Strategy

The RBI's swap operations occur against the backdrop of sustained pressure on the Indian rupee, which has necessitated increased central bank intervention in foreign exchange markets. These interventions typically involve the sale of US dollars to support the domestic currency, a strategy that has secondary effects on domestic liquidity conditions.

Such dollar-selling interventions tend to drain rupee liquidity from the banking system, making swap operations a crucial tool for liquidity management. The multi-maturity approach allows the central bank to address both immediate and medium-term liquidity requirements across different market segments.

Operational Framework

The buy-sell swap structure enables the RBI to provide immediate dollar liquidity while simultaneously managing future currency exposure. This mechanism allows market participants to access foreign exchange liquidity while giving the central bank flexibility in managing overall market conditions.

Traders and FX brokers confirmed the operations across the specified maturity periods, indicating coordinated intervention across multiple market segments. The comprehensive approach suggests the RBI's commitment to maintaining orderly market conditions while addressing liquidity management objectives.