CBI Action: Bank of India(BOI) General Manager(GM) Under Scanner in Fraud Case

According to reports, the General Manager (GM) of Bank of India is the target of a case filed by the Central Bureau of Investigation (CBI). Ten entities/firms with cash credit (CC) and overdraft (OD) accounts with Bank of India allegedly gave him an unfair advantage totaling Rs 43.42 lakh.

He was employed by Bank of India as Chief Manager at the time. According to the CBI, a complaint was filed claiming that A. Kumar, while employed as Chief Manager of the Bank of India, Itwari Branch, Nagpur, between February 2024 and March 2025, had obtained an unfair advantage from the entities/firms involved in a transaction or business he conducted.

"It is observed that Kumar permitted Temporary Overdraft (TOD) or Temporary Loan (TOL) transactions without reporting under prudential supervisory reporting system and in violation of the Bank's guidelines," the bank's Chief Vigilance Officer wrote in a February letter to the CBI. It was discovered that money that had been moved to Kumar's savings account had been embezzled.

Kumar abused his official position as the Chief Manager and sanctioning authority at the time by transferring funds to his personal account, allowing unauthorized TOD/TOL without customer applications, and debiting cash credit/loan accounts with insufficient funds.

Additionally, he deceived some borrowers into sending money out of compassion. He has permitted the transfer of money for personal benefit without the consent of the client in situations where no formal directive was received.

It has been reported that these funds were used for stock market investments. Considering the aforementioned, it was determined that he had prima facie criminal intent. Therefore, I believe that a Prevention of Corruption Act investigation is necessary.

In accordance with Section 11 of the Prevention of Corruption Act (obtaining undue advantage by a public servant without consideration from a person concerned in a proceeding or business transacted by such public servant), the CBI has filed a case against Kumar.

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Registration of Bank of India(BOI) Officers Organisation cancelled in Rajasthan

The Bank of India Officers' Organization (BOIOO-NOBO) has had its registration revoked by the Rajasthan Registrar of Trade Unions due to several irregularities, such as falsified signatures and inconsistent membership records.

The Office of the Registrar of Trade Unions, Rajasthan, has revoked the Bank of India Officers' Organization's (BOIOO-NOBO) registration, which is a major step in the banking trade union sector. Following a thorough review of documents, complaints, and statutory compliance under the Trade Unions Act, 1926, the order, dated March 25, 2026, was issued.

The organisation held Registration No. RTU-01/2022 dated 06.01.2022, which now stands cancelled with immediate effect.

The order states that complaints and supporting documentation submitted to the authority were reviewed before the decision was made. The Registrar noted that the registration was obtained in contravention of the Trade Unions Act's,1926 restrictions. 

The authority observed that the registered union did not provide a satisfactory answer throughout the hearings, even though they were given opportunities to state their position. Statements from a few people who claimed their names were added as founding members without their permission are included in the order. 

Additionally, they rejected signing any registration-related paperwork. The authority began to doubt the veracity of the documents provided during the registration process as a result of these allegations. The ruling was mostly based on the allegations of falsified signatures and unapproved name inclusion.

Inconsistencies in the membership information provided at the time of registration were discovered during examination. The stated membership strength did not correspond with the official records that were at hand. In order to reflect increased membership numbers, it was also noted that names of those connected to another union were included. 

This discrepancy was identified as a significant anomaly in the registration procedure. The organization's declaration of a bank property as its registered office without the necessary authorization or No Objection Certificate (NOC) from the bank was also highlighted by the Registrar. 

This was regarded as a violation of the Trade Unions Act of 1926's legal requirements. According to the order, the registered union received notices that gave it a chance to voice its opinions.However, no office bearers appeared before the authority, and no response was submitted to address the observations raised.

Based on the findings, the Additional Labour Commissioner & Registrar of Trade Unions, Rajasthan, exercised statutory powers under the Trade Unions Act, 1926, and ordered cancellation of the registration granted on 06.01.2022.

The cancellation has been made effective immediately.

The order appears to have been circulated to all concerned parties, including the bank’s head office. As of now, no further developments from the bank’s end have been reported.

The cancellation of BOIOO-NOBO’s registration follows documented findings related to discrepancies in membership records, alleged forged declarations, and procedural non-compliance. The order, issued on 25 March 2026, brings the registration granted under RTU-01/2022 to an immediate end.

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Bank of India(BOI) Provisional Business Figures 31 March 2026

As of March 31, 2026, the Bank of India(BOI) has published Provisional Business Figures. According to reports, the bank's total business is Rs 16.9 lakh crore.

Bank of India Provisional Business Figures 31 March 2026 (Amt Rs cr)

Particulars	31.03.2025 (Audited)	31.12.2025 (Reviewed)	31.03.2026 (Provisional)*	Y-o-Y Growth (%)
Business (Global)	14,82,588	16,27,602	16,98,026	14.53%
Deposits (Global)	8,16,541	8,87,288	9,27,460	13.58%
Gross Advances (Global)	6,66,047	7,40,314	7,70,566	15.69%
Deposits (Domestic)	7,00,298	7,65,499	8,00,682	14.33%
Gross Advances (Domestic)	5,63,550	6,29,080	6,53,441	15.95%
RAM Advances (Gross) (Domestic)	3,22,673	3,68,242	3,82,796	18.63%

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RBI Imposes Penalties on 3 PSU Banks – Union Bank of India, Bank of India(BoI) and Central Bank of India

Union Bank of India, Bank of India, and Central Bank of India are three public sector banks that have been penalized by the Reserve Bank of India (RBI). 

Union Bank of India was penalized by the RBI Union Bank of India has been fined ₹95.40 lakh by the Reserve Bank of India (RBI). The bank was penalized for violating RBI regulations pertaining to automating asset classification procedures and minimizing client liability in unauthorized electronic transactions. 

RBI discovered the following problems after reading the bank's response and hearing its justification: 

Following reports of unauthorized activities, the bank failed to credit funds to clients' accounts within ten working days. Customers could not report unauthorized transactions to the bank around-the-clock.

For certain KCC accounts, the bank employed manual intervention in system-based asset classification. 

Bank of India was fined ₹58.50 lakh by the RBI for failing to comply with regulations pertaining to Priority Sector Lending and interest on deposits. 

Following examination and analysis, RBI discovered the following problems:

For minor priority sector loans up to ₹25,000, the bank imposed additional fees (such as processing and inspection expenses). Certain term deposits were not paid interest by the bank until they were repaid after they matured. 

The Central Bank of India was fined ₹63.60 lakh by the RBI for failing to comply with KYC and basic savings account regulations. Following examination, RBI discovered:

The bank did not upload KYC details of some customers to the Central KYC Registry on time.

The bank opened multiple basic savings accounts for customers who already had such accounts.

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CBI files case of Rs 2.78 crore fraud with Bank of India(BOI) Branch in UP; investigation begins

 The CBI has started investigating the fraud case of Rs 2.78 crore in the name of giving Mudra loan in the Barauli Malik branch of Bank of India in Barabanki.

The CBI, Lucknow's Anti-Corruption Branch, has registered an FIR and begun an investigation into the Rs 2.78 crore fraud committed in the name of Mudra loans at the Barauli Malik branch of Bank of India in Barabanki. On Tuesday, the CBI raided four locations of the accused in Lucknow and one in Mainpuri, gathering crucial evidence. The CBI has named the bank's then branch manager, field officer Shailendra, and unidentified individuals in the FIR.

The CBI registered this FIR on the orders of the Lucknow bench of the Allahabad High Court. After the incident came to light, on February 21, 2024, then-branch manager Rajiv Bachchan filed a complaint with the Zaidpur police station in Barabanki, requesting an FIR, but the police did not register a case. The bank told the CBI that in 2022-23, then-branch manager Aman Verma had approved Mudra loans for 41 people. The loan amount was later transferred to other unauthorized accounts, causing financial loss to the bank.

He also requested the CBI to recover the loan amount from the accounts to which the funds were transferred and to block withdrawals. According to sources, middleman Suresh Rawat would bring people in to open accounts and, with the connivance of bank employees, would obtain Mudra loans in their names. This fraud was carried out by taking advantage of the lack of security deposit for Mudra loans up to ₹10 lakh.

Later, due to non-payment of the loan amount, two FIRs were registered at the Zaidpur police station in Barabanki and one in Satrikh. The victim, Salman, then approached the High Court. He told the court that bank employees had fraudulently obtained his signature and granted him a Mudra loan of Rs 9.10 lakh. Upon learning of this, he filed a police complaint, but no action was taken.

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BOI Officer Arrested in dowry Harassment and Suicide Case

 In relation to the suicide of a 26-year-old woman who allegedly took the drastic measure as a result of dowry harassment, police have detained a bank employee. The event happened in Mahadevpuram Colony, which is located near the Shivpur police station. 

On February 27, Kajal, the 26-year-old victim, was discovered hanging at her residence. Police said that she had been subjected to dowry-related harassment from her husband and in-laws. It was just fifteen months ago that she got married. "My parents raised me with love and care, but I did not get that love in my in-laws' house," the author wrote. I am the princess of my father.

On February 9, just eighteen days prior to her passing, Kajal had already filed a formal complaint against her husband and six other members of her in-laws' family. She accused them in the complaint of physical assault, dowry harassment, and eviction. A suicide note was found at the location by police during their investigation. 

According to reports, Kajal stated in the note that although her parents had nurtured her with a lot of love, she did not receive the same affection and attention in her in-laws' home. She reported to the police that on November 16, 2024, she and Nitesh Kumar Singh were married. She claimed that at first everything went well and that her in-laws spent about ₹80 lakh on the wedding. But soon after, requests for an automobile started,and she was regularly beaten and threatened over it.

In her complaint, Kajal named her husband Nitesh Kumar Singh, brother-in-law Vivek Kumar Singh, Abhishek Kumar Singh, sister-in-law Priya Singh, Anchal Singh, and mother-in-law Kankalta Singh as responsible for harassment. She reiterated these allegations in her suicide note, writing that on February 7, she was verbally abused, beaten, and thrown out of the house. Mental harassment had pushed her to take her life.

After the incident, Kajal’s father Neeraj Rai filed a complaint with the police. Based on his complaint, the police registered a case on February 27 against 11 people, including her husband, under charges related to dowry death.

After filing a police complaint, Kajal was allegedly confined on the third floor of her in-laws’ home. She was not allowed to talk to anyone.

According to her uncle Ambuj Rai, the family called her several times starting at noon, but she did not pick up. After that, they visited her in-laws' home. They called the police at 112 since the door was locked from the inside. Kajal was hanging when the door was broken open by the police. Her in-laws had left. Her body was sent for a post-mortem by the police and forensic team. 

Nitesh Kumar Singh, the accused spouse, is employed by Bank of India in Maldahia as an officer/assistant manager. He and his family members were allegedly fleeing the scene. On Friday, he was apprehended from Phulwaria by a police team from the Shivpur police station. The accused was brought before a court following his arrest, and the judge ordered that he be placed under judicial custody.

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RBI imposes Monetary Penalty on Bank of India(BOI)

 

Bank of India has been fined ₹1.85 lakh by the Reserve Bank of India (RBI) for some currency chest violations. Bank of India's Kanpur Currency Chest was fined ₹1,85,300. 

After anomalies in the way currency remittances were handled were discovered, the action was taken. 

In the soiled note remittance procedure, the RBI noticed problems with counterfeit money, a scarcity of notes, and damaged notes. The central bank chose to penalize the bank financially in light of these infractions. 

Due to irregularities with a currency chest, Punjab National Bank (PNB) was fined ₹5.66 lakh by the Reserve Bank of India (RBI) a few days ago.

A lack of notes found at a bank-run currency chest led to the imposition of the penalty.The management of the cash supply in the banking sector is largely dependent on currency chests. They support the RBI in ensuring that money flows freely throughout the nation.

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Business Today’s 30th edition of Best Banks awards- ICICI Bank is a best bank, BoM is Best Mid Sized Banks and BOI MD & CEO is honoured as Business Transformation Leader (PSB)- Check Other Awards here

The 30th edition of Business Today’s Best Banks event concluded today at Mumbai with Union Minister Nitin Gadkari presenting awards to top-performing institutions across India’s financial sector, marking three decades of the flagship platform.

In a conversation with Group Editor Siddharth Zarabi, Gadkari said India has moved from fourth to third place, surpassing Japan to become the world’s third-largest economy, adding during conversation that rapid technological upgradation is underway across areas.

ICICI Bank was named "Bank of the Year" and Best Large Bank at the 2026 Business Today-KPMG Best Banks survey. Other key winners include Bank of Maharashtra (Mid-Sized), Karur Vysya Bank (Small), HSBC India (Foreign), and Jana Small Finance Bank. 

Read More -Ranking of All Banks in Business Today Banking & Economy Summit 2026

Business Today Best Banks Awards (2026 - 30th Edition) 

Bank of the Year & Best Large Bank: ICICI Bank

Best Mid-Sized Bank: Bank of Maharashtra

Best Small Bank: Karur Vysya Bank

Best Foreign Bank: HSBC India

Best Small Finance Bank: Jana Small Finance Bank

Best Large NBFC: Bajaj Finance

Best Housing Finance Company: Bajaj Housing Finance

Best Social Impact Bank: Indian Bank

Business Transformation Leader (PSB): Rajneesh Karnatak (MD & CEO, Bank of India)

Business Transformation Leader (Private/SFB): Sanjay Agarwal (MD & CEO, AU Small Finance Bank)

Innovation and Human Capital Excellence(NBFC): L&T Finance

Human Capital Excellence in Bank : HDFC Bank

Emerging Technology and AI: DBS Bank

Best Value-Added Services (Fintech): Perfios 

Lifetime Achievement Award: Shaktikanta Das, former Governor of the Reserve Bank of India

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Decline of CASA due to structural shift in banking: BOI MD & CEO

According to Rajneesh Karnatak, MD & CEO, Bank of India, the decrease in CASA for all scheduled commercial banks is a structural change that is occurring in terms of deposits as the demand for mobilizing deposits increases. As you can see from the data, the CASA percentage has decreased in recent years. There is a significant increase in financial literacy as the economy grows. Consumers increasingly invest in gold, mutual funds, pension funds, and equities markets; this is undoubtedly a change.As we develop further, this percentage will come down further,” Karnatak said at the panel discussion ‘Banking’s Next Evolution’ on the sidelines of Business Today Banking & Economy Summit.

Banks will need to determine how to finance the expansion of credit. Retail term deposits and CASA will not be around for very long. Bonds will need to be raised by banks. In order to raise money, corporations will also need to turn to the bond market, Karnatak stated. Because to CASA, private banks have been aggressively opening branches in rural and semi-urban areas where PSBs (public sector banks) used to have a monopoly, according to Nidhu Saxena, managing director and CEO of Bank of Maharashtra. According to Saxena, digitization won't prevent the bank from expanding geographically. "I have a solid board-approved plan to open 1,000 branches in five years, and we are aggressively expanding into new geographies," he continued.

Agreed, Dinesh Khara, former chairman of State Bank of India (SBI). “Banking is all a function of trust. Earning that trust requires the presence of brick-and-mortar also,” Khara said. “Creating a distribution network today is a huge challenge. Public sector banks have that distribution network,” he added.

On potential uses of artificial intelligence (AI) in banking, Khara said the new era for banking is going to be focused in terms of customization, which means that the data which is already there, it has to be put to use beyond the transaction process. “We started doing it during the pandemic. We had come out with algorithms. Based on that we started reaching out to those who needed credit. Those were the early days. We tried it out and it became a great success. With the new models, public sector banks will be in a position to profile their customers and hyper-personalization can become a reality,” said Khara.

Khara, however, warned that the banking industry is facing a challenge in terms of cybersecurity. “Perhaps AI can be used for is cutting costs both in terms of fraudulent activities which become a drain on the bank’s profitability and the right kind of underwriting through better risk management.”

Recalling his tenure as the chairman of India’s biggest lender, SBI, Khara said there were learnings from 2008-2014 wherein there was a challenge in terms of underwriting, there was a challenge in terms of resolving the stressed assets. “But the ecosystem got evolved. The IBC, which was never heard of in the country, came into existence. It actually demonstrated its teeth. That is one of the reasons as to why there were more responsible borrowings as far as corporates are concerned,” he stated.

Zarin Daruwala, Group CEO, PL Capital, said AI can help manage some risks in the banking sector. “Annually, there are about 14 lakh cyberattacks that happen. A lot of it is financial sector. On fraud detection, it is a very big area where we see AI investments happening. Bank of America uses an AI bot which does one billion customer interactions. JP Morgan Chase uses AI for fraud detection, it does 12,000 contracts in seconds. HSBC uses AIML for transaction monitoring. I am sure, Indian banks will also step up on AI investments,” Daruwala said.

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BOI and Union Bank of India Latest Merger News

The government is apparently considering a massive merger between Union Bank of India (UBI) and Bank of India (BoI), one of the biggest advances in India's banking industry. This action is a component of the larger "Merger 2.0" effort, which aims to create public sector banks (PSBs) that are stronger, smaller, and more globally competitive. 

With a network of more than 12,000 branches across the country and assets potentially topping ₹25 lakh crore, the combined company would rank among India's biggest public sector banks if the merger proceeds. According to analysts, this consolidation might benefit around 25–30 crore clients, making it a significant force in India's banking industry.

Why “Merger 2.0” Matters

The government’s push for PSB consolidation is driven by several goals:

1. Global Competitiveness – Creating banks large enough to compete with international lenders.

2. Operational Efficiency – Streamlining processes and reducing non-performing assets (NPAs).

3. Credit Capacity – Strengthening the ability to fund large infrastructure projects and support MSMEs.

4. Financial Stability – Reducing fragmentation among PSBs and building stronger balance sheets.

Other Banks on the Watchlist

Union Bank and BoI are not the only institutions under consideration. Other PSBs frequently mentioned for potential future mergers include:

• Indian Overseas Bank (IOB)

• Central Bank of India

• UCO Bank

• Bank of Maharashtra

• Punjab & Sind Bank

The goal is to reduce the total number of PSBs from 12 to 4–5 large, efficient banks, capable of competing at a global level.

While official approvals are still pending, account holders should be aware of potential changes:

IFSC codes, chequebooks, and banking apps may be updated.

Enhanced digital banking services are likely after consolidation.

Broader branch networks and improved credit access for individuals and businesses.

The government emphasizes that these mergers aim to benefit customers with better service, stronger security, and more financial options.

Sources indicate that internal due diligence is underway, with a tentative target to complete operational integration by December 2026 or early FY 2026-27. However, formal notifications are still awaited from the Finance Ministry.

If implemented, the Union Bank–BoI merger would be one of the most impactful banking consolidations in India in decades, marking a bold step in the government’s strategy to modernize and strengthen public sector banks.

Stay tuned for official updates, which are expected around the Union Budget 2026 announcements on February 1, 2026.

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Bank of India(BOI) Q3 Net profit up 8%

State-run Bank of India on Wednesday (January 21) reported a 7.5% year-on-year increase in net profit for the third quarter, with profit rising to ₹2,705 crore compared with ₹2,516.7 crore in the corresponding quarter last year.

Net interest income for the quarter grew 6.5% year-on-year to ₹6,462.6 crore, up from ₹6,070.3 crore in the same period a year ago. Gross non-performing assets declined to 2.26% from 2.54% in the previous quarter, while net non-performing assets eased to 0.60% from 0.65% sequentially.

Bank of India’s global advances grew 13.63% year-on-year, with domestic advances rising 15.16% YoY. The bank’s total global business crossed the ₹16 lakh crore milestone. Overseas advances increased 5.70% YoY.

On the domestic front, retail advances grew 20.64% YoY, agriculture advances rose 16.69% YoY, MSME advances increased 15.77% YoY, and corporate advances grew 11.32% YoY. The proportion of retail, agriculture, and MSME (RAM) advances in total advances increased to 58.54%.

Deposits for the bank grew 11.64% YoY, with domestic deposits up 12.80% YoY. CASA deposits rose 4.48% YoY, resulting in a CASA ratio of 37.97% as of 31st December 2025.

On the profitability front, operating profit for 9M-FY26 rose 4% YoY to ₹12,023 crore, while Q3FY26 operating profit increased 13% YoY to ₹4,193 crore. Net profit for 9M-FY26 was ₹7,511 crore, up 14% YoY.

Net interest income (NII) for 9M-FY26 stood at ₹18,442 crore. Non-interest income grew 20% YoY for 9M-FY26 to ₹6,665 crore, and 30% YoY for Q3FY26 to ₹2,279 crore. Net interest margin (NIM) for 9M-FY26 was 2.51% globally and 2.76% domestically, while Q3FY26 NIM improved to 2.57% globally and 2.80% domestically. Return on assets (ROA) and return on equity (ROE) for 9M-FY26 were 0.90% and 14.49%, respectively, rising to 0.96% and 15.34% in Q3FY26.

Asset quality improved, with gross NPA ratio at 2.26%, down 143 basis points YoY, and net NPA at 0.60%, improved by 25 bps YoY. The provision coverage ratio (PCR) increased 112 bps YoY to 93.60%.

Slippage ratio for 9M-FY26 improved 36 bps YoY to 0.64%, while Q3FY26 slippage ratio was 0.16%, up 3 bps YoY. Credit cost for 9M-FY26 improved 30 bps YoY to 0.42%, and for Q3FY26 improved 5 bps YoY to 0.34%. On the capital front, Bank of India’s capital adequacy ratio stood at 17.09% as of December 31, 2025.

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Bank of India(BOI) Promotes this General Manager as Chief General Manager

Bank of India (BoI) has announced a key leadership change with the elevation of Shri Shankar Sen to the position of Chief General Manager, effective January 1, 2026.

Shri Sen was previously serving as General Manager at the Field General Manager Office, Pune. With this promotion, he joins the bank’s top management team and will play a strategic role in strengthening operational and financial leadership across the institution.

Shri Shankar Sen is a highly experienced banking professional with over three decades of service across major public sector banks. He earlier served as Chief Financial Officer (CFO) of Bank of India from May 2020 to June 2023, where he played a crucial role in strengthening the bank’s financial position and governance framework.

He is a Chartered Accountant (FCA), holds an MBA from Swami Vivekananda Subharti University, and is a Certified Associate of the Indian Institute of Banking and Finance (CAIIB). His professional expertise spans credit management, risk, corporate and project finance, retail banking, international banking operations, finance, and accounting.

Over the years, Shri Sen has handled several key leadership assignments across corporate banking, project finance, international divisions, and large commercial branches, establishing a strong track record in strategic banking operations.

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Bank of India(BOI) Apprentice Recruitment 2025 Notification

Bank of India(BOI) Apprentice Recruitment 2025: Bank of India has released the official notification for Apprentice Recruitment 2025, inviting applications for 400 posts across various locations. Eligible candidates can apply online after checking the prescribed educational qualifications, age limit, and selection process mentioned in the notification. Interested applicants are advised to complete the application process within the given timeline through the official channel.

Bank of India Apprentice Recruitment 2025 Important Dates

• Notification Released: 23 December 2025
• Application Start Date: 25 December 2025
• Last Date to Apply: 10 January 2026 (11:59 PM)
• Last Date for Fee Payment: 10 January 2026
• Exam Date: To be released

Bank of India Apprentice Recruitment 2025 Age Limit Details

• Age Limit: 20 to 28 years
• Age Calculation Date: 01 December 2025
• Date of Birth Range: 02 December 1997 to 01 December 2005
• Age Relaxation: Applicable as per rules

Bank of India Apprentice Recruitment 2025 Notification PDF & Apply Online Form Link

• Download Notification PDF
• Click Here to Apply Online

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Bank of India(BOI) Q2 results: Net profit up 7.62%

Due to lower lending costs, public sector lender Bank of India (BOI) announced a 7.62% year-over-year increase in net profit to ₹2,555 crore for the July–September 2025 quarter (Q2FY26) on Friday. 

The shares of the Mumbai-based lender closed at ₹123.30 per share on the BSE, a 1.67 percent decrease. In Q2FY26, its net interest income (NII) decreased by 1.24 percent to ₹5,912 crore, from ₹5,986 crore in Q2FY25, the same quarter that ended in September 2024. 

 Net interest margin (NIM) decreased from 2.81 percent in Q2FY26 to 2.41 percent in Q2FY26, a 40 basis point year-over-year (Y-o-Y) decrease.

The managing director and CEO of BOI, R Karnatak, stated that a decrease in provisions for bad loans was the reason for the improvement in net earnings. After the deposit repricing is finished in the second half, the NII ought to start to get better. 

Customers have already received the repo rate reductions. In Q2FY26, the bank's non-interest income—which includes treasury, fees, commissions, etc.—dropped by 12% year over year to ₹2,220 crore. The profit from treasury operations, such as the sale and revaluation of investments, fell from ₹730 crore in Q2FY26 to ₹314 crore in Q2FY26, a 57% decline. 

 Following the results, Karnatak stated in a virtual media exchange that the bank did not experience much treasury income in the third quarter due to the current state of the market.

In Q2FY26, the credit costs, also known as provisions for non-performing assets (NPAs), dropped significantly to ₹472 crore from ₹1,427 crore in the previous year. In Q2FY26, advances increased 14.03 percent year over year to ₹7.09 trillion. 

 In the September quarter of FY26, advances to MSME, retail, and agricultural climbed 17.02 percent year over year to ₹3.47 trillion. According to Karnatak, the second half of the fiscal year is anticipated to see a strong credit offtake, including over the holiday season. A credit pipeline of ₹70,000 crore in corporate, retail, and agricultural loans has been approved. 

 At ₹8.53 trillion, total deposits grew 10.08 percent year over year. At the end of September 2025, the percentage of low-cost deposits, or current accounts and savings accounts (CASA), fell from 41% to 40%.

Gross non-performing assets (NPAs) decreased from 4.41 percent in September 2024 to 2.54 percent in September 2025, indicating an improvement in the bank's asset quality. Additionally, net non-performing assets (NPAs) decreased from 0.94 percent in September 2024 to 0.65 percent in September 2025.

 In September 2025, the provision coverage ratio (PCR), which takes into account written-off accounts, increased from 92.22 percent to 93.39 percent. At the end of September 2025, the bank's capital adequacy was 16.69%, with Common Equity Tier-1 capital at 14.49%.

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