Bank of India posted a strong 32.27% YoY increase in net profit for the first quarter of FY26, reaching ₹2,252 crore. The public sector lender reported improvements across key financial metrics including operating profit, asset quality, and capital adequacy, even as net interest income saw a marginal decline.
Bank of India Q1FY26 Financial Performance Overview
Bank of India (BoI), a leading public sector bank headquartered in Mumbai, operates under the Ministry of Finance, Government of India. It provides a comprehensive suite of banking and financial services to retail, corporate, and international clients through its widespread branch and digital network.
For the quarter ended June 30, 2025, the bank reported a net profit of ₹2,252 crore, marking a 32.27% year-on-year increase from ₹1,703 crore in Q1FY25. The growth was supported by better operating efficiencies and healthier asset quality, despite a 3.29% decline in Net Interest Income (NII) to ₹6,068 crore from ₹6,275 crore.
Key Operating Highlights:
- Operating Profit rose by 9% YoY, reaching ₹4,009 crore.
- Domestic Deposits grew 9.62% YoY, contributing to a total deposit base increase of 9.07% YoY.
- CASA (Current Account Savings Account) deposits increased 2.5% YoY, bringing the CASA ratio to 39.88%.
Profitability Metrics:
- Return on Assets (ROA) stood at 0.82%, reflecting efficient asset utilization.
- Return on Equity (ROE) came in at 13.55%, indicating solid shareholder returns.
- Global Net Interest Margin (NIM) stood at 2.55%, while the Domestic NIM reached 2.82%.
- Yield on Advances (Global) was 8.01%, with cost of deposits at 4.85%.
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Asset Quality Metrics:
Bank of India’s asset quality showed notable improvement across all key indicators:
- Gross NPA ratio fell 170 basis points YoY to 2.92%.
- Net NPA ratio dropped 24 basis points YoY to 0.75%.
- Provision Coverage Ratio (PCR) rose by 83 basis points YoY to 92.94%.
- Slippage ratio improved by 2 basis points YoY to 0.33%, indicating lower fresh delinquencies.
- Credit cost declined by 17 basis points YoY, settling at 0.68%.
Capital Position:
The bank remains well-capitalized, with its Capital Adequacy Ratio (CRAR) standing at a healthy 17.39% as of June 30, 2025. This indicates strong financial stability and ample room for future lending growth. Following the release of its results, Bank of India shares rose 2.85% intraday on the Bombay Stock Exchange (BSE), hitting a high of ₹115.35, before closing flat at ₹112.15 on Tuesday.
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