This article first appeared on GuruFocus .
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Global Business Growth:Increased by INR12.54 crore Y-o-Y to INR16.27 lakh crore in December '25.
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Global Advances:Increased by 13.3% Y-o-Y to INR7.40 lakh crore in December '25.
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Global Deposits:Increased by 11.64% Y-o-Y to INR8.87 lakh crore in December '25.
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Domestic Advances Growth:Increased by 15.16% Y-o-Y to INR6.29 lakh crore in December '25.
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RAM Advances:Increased by 18.05% Y-o-Y to INR3.65 lakh crore in December '25.
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Domestic Deposits:Increased by 12.8% Y-o-Y to INR7.65 lakh crore in December '25.
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CASA Ratio:Stood at 37.97% in December '25.
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Operating Profit:Increased by 13% Y-o-Y to INR4,193 crore for Q3 FY26.
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Net Profit:Increased by 7% Y-o-Y to INR2,705 crore in Q3 FY26.
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Net Interest Income:Increased by 6% Y-o-Y to INR6,461 crore for Q3 FY26.
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Global NIM:Improved by 16 basis points to 2.57% in Q3 FY26.
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Non-Interest Income:Increased by 30% Y-o-Y to INR2,200 crore-plus in Q3 FY26.
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Slippage Ratio:Stood at 0.16% in Q3 FY26.
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Credit Cost:Improved to 0.34% in FY26.
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Gross NPA Ratio:Improved by 143 basis points to 2.26% for Q3 FY26.
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Net NPA Ratio:Improved by 25 basis points to 0.60% in Q3 FY26.
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PCR:Improved to 93.60% in December '25.
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CRAR:Improved to 17.09% in December '25.
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Release Date: January 21, 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 global business, growing by INR12.54 crore year-over-year, with global advances increasing by 13.3% and global deposits by 11.64%.
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The bank's operating profit increased by 13% year-over-year, reaching INR4,193 crore for Q3 FY26.
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Net profit rose by 7% year-over-year, standing at INR2,705 crore in Q3 FY26.
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Non-interest income saw a substantial increase of nearly 30% year-over-year, reaching over INR2,200 crore.
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The bank's asset quality improved, with the gross NPA ratio decreasing by 143 basis points to 2.26% and the net NPA ratio improving by 25 basis points to 0.60% in Q3 FY26.
Negative Points
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The CASA ratio decreased from 41% to 38% over a 12-month period, indicating a shift towards bulk deposits.
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Yield on advances decreased by 80 basis points over a nine-month period, reflecting pressure on lending rates.
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Net interest margin (NIM) declined by 40 basis points over nine months, indicating pressure on profitability.
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SMA-2 numbers nearly doubled, indicating potential stress in certain accounts, particularly in government-backed loans.
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Fresh slippages increased by INR200 crore in the quarter, primarily due to a corporate road account slipping into NPA.
Q & A Highlights
Q: Do you expect higher growth than what you're guiding, or are you being conservative? A: Rajneesh Karnatak, CEO, stated that the bank has been growing its global business at around 12%, with credit growth at 13%+ and deposit growth at 11% on a Y-o-Y basis. Domestic credit growth is over 15%, with RAM advances growing at 18%. The bank is confident that growth numbers will be better in the next financial year due to a strong credit pipeline.
Q: What is the status of the INR65,000 crore corporate pipeline? A: The INR65,000 crore corporate pipeline includes in-principle approvals, sanctions pending documentation, and those ready for drawdown. Not all will be disbursed in Q4 FY26; disbursements will occur over the next six months, including Q1 FY27.
Q: How is the bank managing low-yielding advances? A: The bank has churned its portfolio, moving away from low-yielding advances like AAA PSUs to better-yielding options, improving margins by 25-40 basis points. This strategy has helped improve the global NIM from 2.45% in September '25 to 2.57% in December '25.
Q: What is the outlook for RAM (Retail, Agriculture, MSME) growth in 2026? A: The bank is positive about RAM growth, driven by economic growth, stable agricultural incomes, and changes in MSME definitions. The bank is focusing on allied agriculture and food processing for better asset quality and margins.
Q: Can you provide details on the BOI Shakti scheme and gig workers loan? A: Ashok Pathak, Chief General Manager, explained that the gig worker loans have interest rates between 9.5% to 10.5%, with a ticket size up to INR5 lakh for SMEs. The BOI Shakti scheme for farm mechanization offers loans from INR4 lakh to INR50 lakh, with interest rates around 9%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
