 "Bank of India Q1 net profit rises 32.3% to ₹2,252 crore on treasury gains")
The public sector lender Bank of India (BOI) reported a 32.3 per cent year-on-year rise in net profit to ₹2,252 crore for the April–June quarter (Q1FY26), aided by a surge in treasury income.
The Mumbai-based lender’s shares ended 0.58 per cent higher, closing at ₹112.15 per share on the BSE.
Its Net Interest Income (NII) shrank by 3.3 per cent to ₹6,068 crore in Q1FY26, compared to ₹6,275 crore in the same quarter a year ago (Q1FY25). Net interest margin (NIM) declined by 52 basis points YoY to 2.55 per cent in Q1FY26 from 3.07 per cent in Q1FY25.
R. Karnatak, Managing Director and Chief Executive Officer, BOI, said there will be some additional pressure on margins in the second quarter. The repricing of deposits, which began in October 2024, will be completed by October, providing a benefit for margins. He stated that margins have bottomed out but did not give estimates for NIM.
The bank’s non-interest income, comprising treasury, fees, commissions, etc., grew by 66.4 per cent YoY to ₹2,166 crore in Q1FY26. Profit from treasury activities, including the sale and revaluation of investments, grew almost four times to ₹820 crore in Q1FY26 from ₹166 crore a year ago.
Provisions for non-performing assets (NPAs) declined to ₹1,104 crore in Q1FY26, down from ₹1,216 crore in Q1FY25.
Advances grew 12.02 per cent YoY to ₹6.72 trillion in Q1FY26. Retail, agriculture, and MSME advances grew by 16.27 per cent YoY to ₹3.28 trillion in the June quarter of FY26.
Karnatak said credit off-take was subdued in the first quarter, but performance is expected to improve in the remainder of the financial year. There is a sanctioned credit pipeline of ₹80,000 crore in corporate, retail, and agricultural loans. Credit is expected to grow by 12-13 per cent YoY in FY26, he added.
Total deposits increased 9.07 per cent YoY to ₹8.33 trillion. The share of low-cost deposits—current accounts and savings accounts (CASA)—declined to 39.88 per cent at the end of June 2025, down from 42.68 per cent a year ago. The bank has guided for 10-11 per cent growth in deposits in FY26.
The bank’s asset quality improved, with gross NPAs declining to 2.92 per cent in June 2025 from 4.62 per cent in June 2024. Net NPAs also declined from 0.99 per cent in June 2024 to 0.75 per cent in June 2025. The provision coverage ratio (PCR), including written-off accounts, improved to 92.94 per cent in June 2025 from 92.11 per cent in June 2024.
He said the resolution of loans from the stressed public sector undertaking (MTNL) is expected within three to six months.
The bank’s capital adequacy stood at 17.39 per cent, with Common Equity Tier-1 capital at 14.52 per cent at the end of June 2025. The bank has a comfortable equity capital base and currently has no plans for a fresh equity capital raise. However, the bank has board approval for debt capital of ₹5,000 crore, but there are no firm plans for capital raising at present.