Bank of India: Business Overview & Financial Analysis
Bank of India is a public sector bank headquartered in Mumbai, Maharashtra. Majority-owned by the Government of India, the bank provides a comprehensive range of retail, corporate, agricultural, micro, small and medium enterprises (MSME), and international banking solutions. Operating through an extensive domestic network of branches, automated teller machines (ATMs), and digital channels, alongside international branches in major global financial centers, Bank of India serves millions of retail and institutional clients.
Key Financial Ratios & Performance Indicators of Bank of India (Q4 FY26 & FY26)
Bank of India tracks operational efficiency, capital health, and asset quality indicators across its banking operations.
- Capital Adequacy Ratio (CRAR) – 18.01%
- Global Net Interest Margin (NIM) – 2.52% (Domestic NIM: 2.78%)
- Gross NPA Ratio (GNPA) – 1.98%
- Net NPA Ratio (NNPA) – 0.56%
- Provision Coverage Ratio (PCR) – 93.57%
- Return on Assets (ROA) – 0.93% (1.01% in Q4 FY26)
- Slippage Ratio – 0.83%
- Credit Cost – 0.46%
The bank maintained a Basel III Capital Adequacy Ratio of 18.01% as of 31 March 2026, well above statutory regulatory mandates. Asset quality improved significantly, with Gross NPA dropping to 1.98% and Net NPA to 0.56%, while the Provision Coverage Ratio strengthened to 93.57%.
Deposit Mix & CASA Profile of Bank of India (FY26)
Bank of India funds its balance sheet primarily through domestic retail term deposits and current and savings accounts (CASA).
- Global Deposits – Rs 9,27,000 crore (+13.56% YoY)
- Domestic Deposits – Rs 8,00,000 crore (+14.30% YoY)
- CASA Deposits – Rs 3,01,000 crore
- CASA Ratio – 37.64%
- Cost of Deposits – Controlled liability costs
Total global deposits expanded 13.56% year-on-year to Rs 9.27 lakh crore in FY26, with domestic deposits touching Rs 8.00 lakh crore. Low-cost CASA deposits grew to Rs 3.01 lakh crore, yielding a domestic CASA ratio of 37.64%.
Loan Book Composition & Credit Breakdown of Bank of India (FY26)
Bank of India allocates credit advances across Retail, Agriculture, MSME (RAM), and corporate verticals.
- Global Gross Advances – Rs 7,71,000 crore (+15.82% YoY)
- Domestic Gross Advances – Rs 6,54,000 crore (+16.10% YoY)
- RAM Advances (Retail, Agri & MSME) – Rs 3,84,000 crore (+19.11% YoY)
- Retail Advances Growth – +21.2% YoY
- Agriculture Advances Growth – +17.6% YoY
- MSME Advances Growth – +17.7% YoY
- Corporate Advances Growth – +12.1% YoY
Global gross advances expanded 15.82% year-on-year to Rs 7,71,000 crore in FY26, driven by a 19.11% expansion in the RAM segment. Retail, agriculture, and MSME credit lines form the primary growth driver for domestic lending, outstripping corporate credit expansion.
Asset Quality & Provisioning Metrics of Bank of India (Q4 FY26 & FY26)
Bank of India monitors credit risk, non-performing loans, and recovery buffers across its credit portfolio.
- Gross NPA Ratio – 1.98% (down 129 bps YoY)
- Net NPA Ratio – 0.56% (down 26 bps YoY)
- Slippage Ratio – 0.83% (down from 1.36% YoY)
- Quarterly Written-off Account Recoveries – Rs 2,500 crore
- Provision Coverage Ratio (PCR) – 93.57%
Gross NPA ratio declined to 1.98% in Q4 FY26, down by 129 basis points year-on-year, while Net NPAs dropped to 0.56%. Quarterly slippages moderated to 0.83%, supported by recoveries of Rs 2,500 crore from written-off accounts during the fourth quarter.
Consolidated Financial Performance of Bank of India (Q4 FY26 & FY26)
Bank of India delivered operating income growth and net profit expansion during the fourth quarter and full financial year FY26.
- Q4 Net Profit (PAT) – Rs 3,741 crore (+14.7% YoY)
- Full-Year Standalone Net Profit (PAT) – Rs 10,527 crore (+14.0% YoY)
- Full-Year Consolidated Net Profit (PAT) – Rs 10,306 crore
- Full-Year Operating Profit – Rs 17,049 crore (+4.0% YoY)
- Net Interest Income (NII) – Rs 25,172 crore (+3.0% YoY)
- Non-Interest Income – Rs 9,874 crore (+10.0% YoY)
- Total Dividend Declared (FY26) – Rs 4.65 per equity share (46.50%)
Full-year standalone net profit reached Rs 10,527 crore, up 14% year-on-year, while operating profit rose to Rs 17,049 crore. The Board of Directors recommended a final dividend of Rs 4.65 per equity share for FY26.
Capital Raising & Balance Sheet Metrics of Bank of India (FY26)
Bank of India maintains capital adequacy supported by long-term bond issuances.
- Capital Adequacy Ratio (CRAR) – 18.01%
- Tier-II Basel III Bonds Issued – Rs 2,500 crore
- Infrastructure Bonds Issued – Rs 10,000 crore
- Total Global Business Volume – Rs 16,98,000 crore (+14.57% YoY)
The bank reinforced its capital structure by issuing Rs 2,500 crore in Basel III Tier-II bonds and Rs 10,000 crore in long-term Infrastructure Bonds in FY26. Total global business volume crossed Rs 16.98 lakh crore, growing 14.57% year-on-year.
Management Commentary & Strategic Outlook of Bank of India (FY26–FY27)
Management guidance outlines operational targets focused on deposit accretion, advances expansion, and asset quality defense.
- Management guides for 15%–16% global advances growth and 13%–14% global deposit growth in FY27.
- Domestic Net Interest Margin (NIM) is targeted as close to 3.00% as possible, with global NIM projected near 2.70% for FY27.
- Return on Assets (ROA) is targeted to reach 1.00% by March 2027.
- Fresh quarterly slippages are targeted to remain contained, with written-off recoveries guided at Rs 2,500–3,000 crore in FY27.
- RAM advances are targeted to account for ~62% of total domestic advances over the medium term.
- Annualized Expected Credit Loss (ECL) transition impact is estimated at ~0.50% per year (~2.50% over 5 years), with negligible impact on annual credit costs.
Sources & References
- Bank of India Q4 & Full Year FY26 Consolidated Financial Results Disclosures (May 2026)
- Bank of India Q4 FY26 Earnings Conference Call Transcript (May 8, 2026)
- ICRA Credit Rating Rationale for Bank of India
- BSE India & NSE Corporate Filings for Bank of India
- Ticker Finology Bank of India Page
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Disclaimer
The information presented above on Bank of India has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Bank of India page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.