Bank of India reported a strong Q3 FY26 with global business growing by 12.54% YoY. The bank highlighted key initiatives, including CTS implementation and new products for gig workers. Management emphasized a calibrated approach to credit growth and investments in IT infrastructure. The earnings call focused on maintaining profitability, asset quality, and strategic alignment with economic growth. Global advances are expected to grow 13-14% and deposits by 11-12% for FY26.
Financial Performance Overview
Bank of India reported its Q3 FY26 financial results, showcasing significant growth across key business segments:
- Global business increased by 12.54% YoY, from Rs. 14,46,295 crore to Rs. 16,27,602 crore.
- Global Gross Advances grew by 13.63% YoY, reaching Rs. 7,40,314 crore.
- Global Deposits increased by 11.64% YoY, totaling Rs. 8.87 lakh crore.
- Domestic Gross Advances rose by 15.16% YoY to Rs. 6.29 lakh crore.
Key Initiatives and Product Launches
The bank highlighted several strategic initiatives launched during the quarter:
- Implemented CTS Continuous Clearing to facilitate faster cheque processing.
- Introduced the BOI Surya Shakti Scheme for financing agriculture sector farmers.
- Launched a suite of products designed for gig workers, including Star Gig Grow Loan and GIG GearUP Loan.
- Introduced two new credit card variants: Celestia Credit Card and Rupay Women’s Credit Card.
Profitability and Asset Quality
Bank of India demonstrated improvements in profitability and asset quality:
- Operating Profit increased by 13% YoY, reaching Rs. 4,193 crore.
- Net Profit increased by 7% YoY, totaling Rs. 2,705 crore.
- Net Interest Income increased by 6% YoY, reaching Rs. 6,461 crore.
- Slippage ratio stood at 0.16%, with Credit Cost improving to 0.34%.
- Gross NPA ratio improved to 2.26%, and Net NPA ratio improved to 0.60%.
- Provision Coverage Ratio (PCR) improved to 93.60%.
Strategic Outlook and Guidance
Bank of India’s management provided guidance for FY26, projecting:
- Global advances growth of 13-14%.
- Global deposit growth of 11-12%.
The bank aims to mobilize low-cost deposits, accelerate high-yielding advances, and maintain a focus on prudent credit underwriting to strengthen asset quality. Focus remains on maintaining rigorous compliance standards.
Q&A Highlights
During the Q&A session, key points were discussed:
- The bank is targeting a NIM of around 2.50% for FY26.
- Branch expansion plans include opening 600 branches over three years.
- The estimated impact of ECL is around 2% on the CRAR, to be spread over five years.
Source: BSE
