Profit Growth Driven by Better Performance
Bank of India reported a 7.47% year-on-year increase in net profit to ₹2,705 crore for the third quarter of FY26, supported by improved asset quality, steady income growth, and stronger operating performance. On a quarter-on-quarter basis, profit after tax rose 5.88% from ₹2,555 crore in Q2 FY26, according to the bank’s exchange filing.
Asset Quality Shows Sharp Improvement
The bank’s gross NPA ratio declined to 2.26%, improving by 143 basis points YoY, while the net NPA ratio fell to 0.60%, down 25 basis points YoY. The provision coverage ratio (PCR) strengthened further to 93.60%, marking an improvement of 112 basis points YoY, reflecting stronger balance sheet resilience.
Slippages continued to improve during the period. The slippage ratio for 9M-FY26 declined by 36 basis points YoY to 0.64%, while the Q3 FY26 slippage ratio improved marginally to 0.16%, indicating better control over fresh bad loans.
Operating Performance and Income
Operating profit for 9M-FY26 rose 4% YoY to ₹12,023 crore, while Q3 FY26 operating profit increased 13% YoY to ₹4,193 crore.
Net interest income (NII) stood at ₹6,461 crore in Q3 FY26 and ₹18,442 crore for 9M-FY26. Interest income rose to ₹18,928 crore, while interest expenses were ₹12,467 crore during the quarter.
Deposits, Margins, and Customer Growth
Deposits grew 11.64% YoY, led by 12.80% growth in domestic deposits. Domestic net interest margin improved to 2.80% in Q3 FY26, up from 2.66% in Q2 FY26.
The bank added over 7 lakh customers during the quarter, taking its total UPI customer base to over 242 lakh, highlighting continued digital adoption.
(This article has been syndicated from ANI)