Bank of India net profit rises 7% to Rs 2705 crore on improved margins

MUMBAI: Bank of India on Tuesday reported a 7% year-on-year rise in net profit for the quarter ended Dec 31, 2025, as loan growth outpaced increase in deposits and Net Interest Margin (NIM) improved by 16 basis points quarter-on-quarter, rising to 2.57% from 2.41% in the quarter ended September 30, 2025.The bank posted a net profit of Rs 2,705 crore for the December quarter, up from Rs 2,517 crore a year earlier. Profit before tax rose 6% to Rs 3,617 crore, while operating profit increased 13% to Rs 4,193 crore, supported by higher core income and a strong rise in other income.Interest income for the quarter rose 4% to Rs 18,928 crore, while interest expended increased 3% to Rs 12,467 crore. Net interest income rose 6% to Rs 6,461 crore from Rs 6,070 crore in the corresponding quarter last year, reflecting steady balance-sheet growth despite higher funding costs.Non-interest income rose 30% year-on-year to Rs 2,279 crore, aided by a sharp increase in profit from sale and revaluation of investments and higher other non-interest income. Total operating expenses rose 11% to Rs 4,547 crore, led by a 9% increase in staff costs and a 21% rise in miscellaneous expenses.Total provisions before tax nearly doubled to Rs 576 crore from Rs 304 crore a year earlier, even as provisions for bad and doubtful debts remained largely flat at Rs 605 crore.

Tax expenses rose 3% to Rs 912 crore. For the nine months ended Dec 2025, the bank reported a provision reversal of Rs 324 crore on standard assets and others, compared with a reversal of Rs 282 crore in the year-ago period.The bank’s balance sheet continued to expand, with global deposits rising 11.6% year-on-year to Rs 8,87,288 crore as of Dec 31, 2025. Domestic deposits grew 13%, driven by a 16% increase in retail term deposits.

Global advances rose 13.6% to Rs 7,40,314 crore, with growth spread across segments. Retail advances grew 20.6%, agriculture advances rose 16.7%, and MSME advances increased 15.8% over the previous year.Asset quality improved significantly during the quarter. Gross NPAs declined to Rs 16,714 crore from Rs 24,048 crore a year earlier, while the gross NPA ratio improved to 2.26% from 3.69%, a reduction of 143 basis points.Key ratios remained stable, with the CET-1 capital adequacy ratio at 13.76% at the end of December, compared with 12.96% a year earlier. Return on equity stood at 15.3%, while the cost of deposits declined to 4.77% from 4.96%. Yield on advances remained unchanged at 7.81% on a sequential basis.Including the capital conservation buffer, the bank’s Basel III capital adequacy ratio stood at 17.09%, well above regulatory requirements, positioning it to support future growth while maintaining balance-sheet strength.