Bank of India Q3FY26 profit rises 7.47% on strong non-interest income

Bank of India posted a 7.5% YoY rise in Q3FY26 net profit to ₹2,705 crore, driven by strong non-interest income and improved asset quality

State-owned lender Bank of India reported 7.47 per cent Year-on-Year (YoY) growth in net profit to Rs 2,705 crore in October-December period of FY26 (Q3 FY26) from Rs 2,517 crore in the year ago period, aided by growth in non-interest income. Sequentially, the profit was up by 5.9 per cent YoY from Rs 2,555 crore. 

In Q3FY26, its net interest income was up 6.43 per cent YoY to Rs 6,461 crore from Rs 6,070 crore in Q3FY25. Non-interest income rose 30 per cent YoY to Rs 2,279 crore, aided by a sharp increase in profit from sale and revaluation of investments at Rs 473 crore and higher other non-interest income at Rs 788 crore. 

Total income was up nearly 3 per cent YoY to Rs 2,165 crore from Rs 2,093 crore in the same period last year. 

Net interest Margin, a measure of profitability of banks, stood at 2.57 per cent, up 16 basis points from the previous quarter. 

Rajneesh Karnatak, MD&CEO of Bank of India said, “We have improved our NIM from 2.41 per cent which was the global NIM as of September. Despite the kind of pressure that already exists on NIM, we still expect it to be around 2.60 per cents.” 

Provisions of the lender stood at Rs 576 crore in Q3FY26, up from Rs 441 crore in Q2FY26. 

Asset quality of the lender improved, with gross non-performing assets (NPAs) improving by 28 bps to 2.26 per cent in the December quarter. Net NPAs of the lender stood at 0.60 per cent, down 5 bps form the previous quarter. 

Bank’s global advances grew 13.63 percent Y-o-Y, with domestic advances rising 15.16 percent YoY. The bank’s total global business was at Rs 16.27 trillion . Overseas advances increased 5.70 percent YoY. 

On the domestic front, retail advances grew 20.64 percent YoY, agriculture advances rose 16.69 percent YoY, MSME advances increased 15.77 percent YoY, and corporate advances grew 11.32 percent YoY. The proportion of retail, agriculture, and MSME (RAM) advances in total advances increased to 58.54 percent. 

Deposits for the bank grew 11.64 percent YoY, with domestic deposits up 12.80 percent YoY. 

Commenting on the impact of Expected Credit Loss (ECL), Karnatak said the impact would be around 2 per cent of the CRAR over a five-year term, which translates to an annualized impact of about 0.4 per cent. 

“We have already made a profit of Rs 7,500 crores in the first nine months. Therefore, it will not have much impact on the overall CRAR, similar to ECL, and we will be able to absorb it in a very comfortable manner,” he said.