Infomerics Ratings has given Bank of India(BOI) a AAA grade. Infomerics has reiterated its IVR AAA/Stable long-term rating on the Bank of India's (BOI) Basel HI Compliant Tier-II Bond Program.With a 73.38% interest as of June 30, 2026, GOI remains BOI's largest shareholder, offering substantial comfort in terms of ownership and prospective support.
Net profit rose by almost 14% to Rs 10,527 crore from Rs 9,219 crore, while operating profit improved by around 4% year over year to Rs 17,049 crore in FY26 from Rs 16,412 crore in FY25. A decrease in provisions before tax of about 22% to Rs 3,103 crore, which reflected ongoing improvements in asset quality and lower credit costs, bolstered the increase in profitability.
The domestic NIM remained comparatively stronger at around 2.78% as on March 31, 2026. Management indicated that it intends to support margins through higher-yielding RAM and MCLR-linked advances, increased mid-corporate lending and reduction in the cost of deposits. The earnings momentum strengthened further in Q1FY27, with operating profit increasing by around 26% y-o-y to Rs 5,051 crore and net profit increasing by around 36% to Rs 3,068 crore.
ROA improved to 1.01% from 0.82% in Q1FY26, while the cost-to-income ratio improved significantly to 46.33% from 51.31%. Credit cost also moderated to 0.15% from 0.17%. However, NIM remained at 2.52%, reflecting continued margin pressure. Management has guided for global NIM of 2.55%-2.60% and ROA of 1% or above in FY27, with cost-to-income expected to remain around 48%-49% on a sustainable basis.
BOI has a well-diversified loan portfolio, with RAM accounting for around 59% of domestic advances as on March 31, 2026, supporting granular credit growth. Domestic gross advances grew 16% y-o-y in FY26, led by Retail, Agriculture and MSME growth of 21%, 18% and 18%, respectively, and the momentum strengthened in Q1FY27, with domestic advances and RAM growing 19% and 20% y-o-y, respectively. Retail, Agriculture and MSME advances grew by 21%, 19% and 19%, respectively, making RAM the key growth driver.
CASA moderated to 37.64% in FY26 from 40.29%, and further to 36.68% in Q1FY27, despite absolute CASA rising to Rs 3,00,765 crore from Rs 2,80,316 crore, reflecting changing customer savings preferences and higher reliance on Rs 3-25 crore and selective bulk deposits to support credit growth. Nevertheless, funding costs improved, with cost of deposits declining to 4.69% from 4.85% and cost of funds to 4.45% from 4.66% in Q1FY27, aided by deposit optimisation.
As on March 31, 2026, the bank had 5,535 domestic branches, 7,685 ATMs & CRAs, 25,053 Business Correspondents and 38,273 customer touch points, compared with 5,328 branches, 8,003 ATMs & CRAs, 23,281 Business Correspondents and 36,612 customer touch points as on March 31, 2025.
The bank also has a well-established international presence across 15 countries and five continents, including major financial centres. During FY26, overseas deposits increased to around Rs 1.27 lakh crore, while overseas advances increased to around Rs 1.17 lakh crore, supporting the overall growth in the bank’s global business.
