State-owned Bank of India on Friday reported an 18.67% rise in its consolidated net profit for the March quarter to ₹3,087.76 crore on the back of an uptick in core income and asset quality improvement.
In the year-ago period, the net profit stood at ₹2,601.98 crore.
On a standalone basis, its net profit increased by 14.85% year-on-year to ₹3,015.79 crore.
1 May 2026
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The core net interest income increased by 11% to ₹6,730 crore in the reporting quarter from ₹6,063 crore a year ago.
Its net interest margin (NIM) improved marginally on a sequential basis to 2.58% in Q4 FY26 from 2.57% in Q3 FY26. However, on a yearly basis, margins have declined from 2.61%.
Rajneesh Karnatak, MD and CEO of Bank of India, guided global NIM in the range of 2.70-2.75% in FY27 despite global headwinds, elevated deposit costs and inflation concerns.
"The bank plans to improve margins through higher CASA mobilisation, growth in RAM (retail, agri and MSME) loans, more MCLR-linked advances and better-performing corporate credit," Karnatak said during the post-earnings conference.
Under the government's ECLGS 5.0 scheme, Karnatak expects loan demand of ₹10,000-12,000 crore from MSME and non-MSME borrowers.
The Union Cabinet has approved ECLGS 5.0 with an overall outlay of ₹2.55 lakh crore to provide additional working capital support to businesses affected by the ongoing geopolitical tensions in West Asia.
On the proposed expected credit loss (ECL) framework, Karnatak said the transition impact would be manageable at around 0.5 percentage points annually on CRAR over a five-year period beginning April 2027.
"The total impact is estimated at 2.5 percentage points, while the bank's current CRAR stands at 18.01% against the regulatory requirement of 11.5%," he added.
In the reporting quarter, global deposits of the bank grew 13.56% to ₹9.27 Lakh crore compared to ₹8.17 lakh crore in the year-ago period.
Domestic deposit grew 14.30% year-on-year to ₹8.01 lakh crore, followed by a 9.11% rise in overseas deposit to ₹1.27 lakh crore.
Current-Saving account (CASA) deposits increased by 7.30%, and the CASA ratio stood at 37.64% as of March 31, 2026.
Overseas advances registered a growth of 14.25% and touched ₹1.17 lakh crore.
Retail advances increased by 21.19%, MSME advances grew by 17.68%, agriculture surged by 17.60% and corporate advances by 12.08%. RAM advances share increased to 58.74%, according to the press release.
Karnatak expects that bank loan growth will remain in the range of 15-16% in FY27, which will be driven by retail, agriculture and MSME sectors.
Gross non-performing asset (NPA) ratio of the bank improved by 1.29% to 1.98% in the reporting quarter. Similarly, the net NPA ratio improved by 0.26% to 0.56% in Q4 FY26.
In the reporting quarter, the provision coverage ratio of the lender improved by 1.18% and stands at 93.57%.
Capital Adequacy Ratio (CRAR) stood at 18.01% as of March 31, 2026.
Shares of Bank of India ended 0.39% down at ₹139.75 on BSE, while the benchmark corrected 0.66%.
