This article first appeared on GuruFocus .
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Global Business Growth:16.57% Y-o-Y increase to INR17.55 lakh crores.
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Global Deposits:14.90% Y-o-Y increase to INR9.58 lakh crores.
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Domestic Deposits:16.15% Y-o-Y increase to INR8.25 lakh crores.
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CASA Ratio:36.68%, with CASA increasing to INR3.02 lakh crores.
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Global Advances:18.84% Y-o-Y increase to INR7.98 lakh crores.
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Domestic Gross Advances:19.20% Y-o-Y increase to INR6.74 lakh crores.
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RAM Advances:19.75% Y-o-Y increase to INR3.93 lakh crores, constituting 54.30% of advances.
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Operating Profit:25.99% Y-o-Y increase to INR5,051 crores.
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Net Profit:36% Y-o-Y increase to INR3,068 crores.
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Net Interest Income:12.61% Y-o-Y increase to INR6,833 crores.
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Noninterest Income:19.07% Y-o-Y increase to INR2,579 crores.
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Global NIM:2.52% in June '26.
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Slippage Ratio:0.24% in June '26.
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Credit Cost:0.15% in June '26.
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Gross NPA Ratio:Improved by 111 basis points to 1.81%.
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Net NPA Ratio:Improved by 24 basis points to 0.51%.
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Provision Coverage Ratio:Improved to 93.63%.
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CRAR:Improved to 18.69%.
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Warning! GuruFocus has detected 2 Warning Signs with BOM:532149.
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Release Date: July 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Bank of India ( BOM:532149 ) reported a significant increase in net profit by 36% year-over-year, reaching INR3,068 crores for June '26.
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The bank's operating profit improved by 25.99% year-over-year, standing at INR5,051 crores for June '26.
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Global business grew by 16.57% year-over-year, with global deposits increasing by 14.90% and global advances by 18.84%.
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The bank has successfully reduced its gross NPA ratio by 111 basis points year-over-year to 1.81%, and net NPA ratio improved by 24 basis points to 0.51%.
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Bank of India ( BOM:532149 ) has implemented several digital initiatives, including a virtual personalized debit card and a central video customer identification process center, enhancing customer convenience and operational efficiency.
Negative Points
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The CASA ratio decreased by 3%, indicating a shift in the deposit mix that could impact the bank's cost of funds.
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Despite the overall growth, the personal loan segment only grew by 3%, suggesting challenges in expanding this portfolio.
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The bank's net interest margin (NIM) slightly declined to 2.52% from 2.55% year-over-year, indicating pressure on interest income.
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There is ongoing concern about potential stress in MSME and small loan accounts due to geopolitical uncertainties and economic conditions.
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The bank has reduced its number of ATMs by 300, which may affect customer accessibility and service reach.
Q & A Highlights
Q: Have you started feeling stress in some accounts, especially MSME and small loan accounts, due to geopolitical issues? A: Rajneesh Karnatak, CEO: We have not seen significant stress in our accounts due to geopolitical issues. Our SMA numbers have decreased, indicating strong collection efficiency. Fresh slippages have also been controlled. We are monitoring sectors like chemicals and ceramics closely. The ECLGS scheme has helped MSMEs manage increased working capital needs.
Q: What are your plans regarding FCNR deposits and leveraging opportunities? A: Rajneesh Karnatak, CEO: We aim to raise $1.2 billion in FCNR deposits by September 30. We have a strong international presence and have already garnered over $200 million. We offer competitive rates and plan to leverage up to 9 times. Our strategy includes raising $2 billion through OFCB and MTN by December 31, 2026.
Q: How do you plan to maintain profitability given the changing yield environment? A: Rajneesh Karnatak, CEO: We aim to grow our advances across various segments, including RAM, mid-corporate, and international books. We are focusing on improving NIMs and diversifying our credit portfolio to mitigate risks. Our strategy includes increasing MCLR advances and optimizing our international book.
Q: What is your strategy for gold loans and their growth potential? A: Rajneesh Karnatak, CEO: Our gold loan book stands at INR57,000 crores with a yield of over 9%. We have a robust strategy for managing NPAs in this segment and aim to grow our gold loan book by 25% year-on-year. Gold loans are a key part of our RAM advances growth strategy.
Q: How does the bank plan to enhance its human resources and technology capabilities? A: Rajneesh Karnatak, CEO: We are investing in upskilling and reskilling our workforce through the STAR LIGHT program. We are also enhancing our digital capabilities, focusing on IT, cybersecurity, and digital transformation. Our goal is to leverage technology for business growth and improve operational efficiency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
