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Bank of India Ltd — Q4 FY26
Bank of India reported a strong Q4 FY26 with net profit of ₹10,527 crore (up 14% YoY) driven by robust business growth and improved asset quality.
bullish
high
✓ Verified against BSE filing
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Bank of India reported a strong Q4 FY26 with net profit of ₹10,527 crore (up 14% YoY) driven by robust business growth and improved asset quality. Global business grew 14.6% to ₹16.98 lakh crore, with deposits up 13.6% and advances up 15.8%. Asset quality improved significantly: GNPA ratio fell 129 bps to 1.98% and NNPA to 0.56%. Management guided for 15-16% credit growth and 13-14% deposit growth in FY27, targeting domestic NIM of ~3% and ROA of 1%. Key risks include geopolitical headwinds impacting MSMEs and potential credit cost increase from ECL implementation (estimated 10 bps annual impact).
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Geopolitical headwinds impacting credit quality
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Global Business
₹16.98 lakh crore
+14.6% YoY
Total global business (deposits + advances) grew to ₹16.98 lakh crore from ₹14.63 lakh crore.
CASA Ratio
37.64%
-240 bps YoY
CASA ratio declined from ~40% in FY25 to 37.64% due to structural shift in deposits.
Gross NPA Ratio
1.98%
-129 bps YoY
GNPA ratio improved to 1.98% from 3.27% in FY25, reflecting better asset quality.
Credit Cost
0.46%
-30 bps YoY
Credit cost improved to 0.46% in FY26 from 0.76% in FY25.
What Changed vs Last Quarter
NEW
Credit growth guidance of 15-16% for FY27
Global advances expected to grow 15-16% in FY27, driven by RAM and mid-corporate segments.
NEW
Deposit growth guidance of 13-14% for FY27
Global deposits targeted to grow 13-14% in FY27, with focus on CASA and retail term deposits.
NEW
Domestic NIM target of ~3% by March 2027
Management aims to improve domestic NIM from 2.78% to near 3% by end of FY27 through better yield and lower cost of deposits.
NEW
ROA target of 1% for FY27
Bank expects to achieve ROA of 1% for the full year FY27, up from 0.93% in FY26.
DROPPED
Global advances growth of 13-14% for FY26
Management guided global advances growth at 13-14% for FY26, supported by a corporate pipeline of ₹65,000 crore.
DROPPED
Global deposits growth of 11-12% for FY26
Management guided global deposits growth at 11-12% for FY26, with focus on low-cost deposits.
DROPPED
NIM to be maintained around 2.50% for FY26, Q4 around 2.60%
Management expects full-year NIM around 2.50% and Q4 NIM around 2.60%.
DROPPED
Branch expansion of 200 branches per year for FY26 and FY27
Board approved opening 200 branches in FY26 and another 200 in FY27, totaling 600 branches over three years.
NEW RISK
Geopolitical headwinds impacting credit quality
Rising crude prices, supply chain disruptions, and interest rate hikes may stress MSME and export-oriented sectors.
NEW RISK
State PSU slippage risk
Three state PSUs in SMA category may slip into NPA if cash flows don't improve, though management is confident of recovery.
RISK GONE
SMA-2 book doubled to ₹4,120 crore
SMA-2 (overdue 61-90 days) increased from ₹2,200 crore to ₹4,120 crore, largely from three state government accounts, though backed by guarantees.
RISK GONE
Yield on advances down 80 bps in 9 months
Yield on advances declined due to 125 bps repo rate cuts, with 64% of book linked to EBLR, pressuring NIMs.
Fast read
Guidance and risk preview
Global advances expected to grow 15-16% in FY27, driven by RAM and mid-corporate segments.
Rising crude prices, supply chain disruptions, and interest rate hikes may stress MSME and export-oriented sectors.
View Risks →