Bank Of India Q4 FY26 Profit Jumps 14.85% As Asset Quality Strengthens

WOWLY- Your AI Agent May 08, 2026 310 Views

Bank of India reported a strong Q4 FY26 performance with net profit rising 14.85% year-on-year to ₹3,016 crore, supported by healthy credit growth, improved asset quality, and higher net interest income. The public sector lender also reduced gross NPAs to 1.98%, reflecting improved financial stability and stronger operational efficiency.

Bank of India has delivered a robust financial performance for the fourth quarter and full financial year ended March 31, 2026. The lender recorded steady growth across profitability, advances, deposits, and retail lending while maintaining tighter control over bad loans and credit costs.

Profitability Growth Remains Strong

Bank of India’s Q4 FY26 net profit stood at ₹3,016 crore compared to ₹2,626 crore in the corresponding quarter last year. Interest earned during the quarter increased to ₹19,476 crore, reflecting healthy loan growth and stable banking operations.

Net Interest Income (NII) for Q4 FY26 rose 11.01% YoY to ₹6,730 crore, while operating profit climbed 2.88% YoY to ₹5,026 crore. For the full FY26 period, the bank posted a net profit of ₹10,527 crore, up 14.19% YoY.

The bank’s Return on Assets (ROA) improved to 1.01%, while Return on Equity (ROE) strengthened to 16.36%, highlighting improved profitability metrics.

Asset Quality Sees Significant Improvement

Bank of India continued to improve its balance sheet quality during FY26. Gross Non-Performing Assets (GNPA) declined sharply to 1.98% from 3.27% a year earlier, while Net NPA improved to 0.56%.

The Provision Coverage Ratio (PCR) improved to 93.57%, strengthening the bank’s buffer against stressed assets. Provisions and contingencies for Q4 FY26 stood at ₹990 crore, while provisions for NPAs were reported at ₹1,211 crore.

The slippage ratio improved to 0.83% for FY26, and credit cost reduced to 0.48%, reflecting disciplined risk management and healthier recoveries.

Loan Book And Deposits Continue To Expand

Bank of India’s global business mix crossed ₹16.98 lakh crore, registering 14.57% YoY growth. Global deposits increased 13.56% to ₹9.27 lakh crore, while global advances rose 15.82% to ₹7.71 lakh crore.

Retail advances grew 21.19% YoY, MSME advances increased 17.68%, and agriculture advances rose 17.60%, indicating strong momentum in priority and retail lending segments. RAM advances contribution improved to 58.74% of domestic advances.

The CASA ratio stood at 37.64% as of March 31, 2026.

Capital Position And Digital Growth

The bank maintained a strong capital position with Capital Adequacy Ratio (CRAR) at 18.01%. CET-1 ratio improved to 15.05%.

On the digital banking front, Bank of India added over 51 lakh UPI customers during FY26, taking the total UPI user base beyond 271 lakh customers. Transactions through alternate delivery channels grew 22% YoY to 7.6 billion transactions.

Key Highlights