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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ED has arrested a Bank of India(BoI) officer in a fraud case for Rs 16.10 crore

In accordance with the Prevention of Money Laundering Act, 2002 (PMLA), Hitesh Kumar Singla, an officer of Bank of India, was taken into custody by the Directorate of Enforcement (ED), Mumbai, from Ahmedabad Junction Railway Station. Bank of India had previously suspended the officer. 

 After his appearance before the Greater Bombay Special PMLA Court, he was given seven days of ED detention. Under Sections 13(1)(a) and 13(2) of the Prevention of Corruption Act, 1988, Section 409 of the Indian Penal Code, and Section 316(5) of the BNS, the CBI had brought a case against Singla and Others.

As the case involved money laundering, it was transferred to ED and ED started its investigation.

Investigations revealed that between May 2023 and July 2025, Singla fraudulently closed multiple accounts—including Term Deposits (TDs), Public Provident Fund (PPF), Senior Citizen Savings Scheme (SCSS), Savings Bank (SB), and Current Accounts (CA)—without authorization. The funds were then diverted to his personal SBI savings accounts.

According to the ED, Singla deliberately targeted 127 account holders, mostly vulnerable customers such as senior citizens, minors, deceased persons, and dormant account holders, to avoid detection.

The diverted funds were layered and transferred in small, concealed transactions, causing a total loss of ₹16.10 crore to Bank of India and its customers, while severely damaging the bank’s reputation and public trust.

Singla had been evading the bank and not reporting since the crime was discovered. At Ahmedabad Junction, ED apprehended him based on technical surveillance and intelligence inputs. He was detained despite his repeated attempts to avoid detection by switching carriages and seats on Train No. 19320 Mahamana Express (Ujjain–Veraval).

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CBI Investigates ₹121 Crore Fraud in Gujarat, Complaint lodged by BOI

Three sites in Ahmedabad and Gandhinagar have been searched by the CBI in relation to a ₹121 crore bank scam involving the city-based company Anil Bioplus. Incriminating documents were seized as a result of the Wednesday raids. 

The CBI has charged the firm and its directors, Amol Shripal Sheth, Darshan Mehta, and Nalin Thakur, in response to a complaint filed by the Bank of India. 

 Based on a complaint received from Bank of India against M/s. Anil Bioplus Ltd., a private company based in Ahmedabad, its three directors—Amol Shripal Sheth, a full-time director; Darshan Mehta, a full-time director; and Nalin Thakur, a director—as well as unidentified public employees and other unidentified individuals, the Central Bureau of Investigation (CBI) opened a case on September 8, 2025.

The lawsuit alleges that the directors of a private company situated in Ahmedabad conspired with unidentified Bank of India personnel with the malicious purpose to cause the bank to suffer an unjustified loss of Rs. 121.60 crores.

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Big Fraud of Rs.1,396 Crore Fraud in Bank of India(BOI) and Other Banks

On August 30, 2025, the Shimla-based Directorate of Enforcement (ED) conducted search operations in Bhubaneswar, Odisha, as part of a large-scale bank fraud and money laundering case involving M/s Indian Technomac Company Ltd (M/s ITCOL). In addition to the business establishments of M/s Anmol Mines Pvt. Ltd. (AMPL) and M/s Anmol Resources Pvt. Ltd. (ARPL), the searches were carried out at the residence of Shakti Ranjan Dash, Managing Director of these companies. The action was carried out in accordance with the Prevention of Money Laundering Act (PMLA), 2002.

The Himachal Pradesh Police CID filed a formal complaint (FIR) alleging that M/s ITCOL's directors conspired with corporate officials and chartered accountants to embezzle bank loans approved by a group of banks. According to ED findings, M/s ITCOL submitted fabricated project reports and displayed fictitious sales to dummy/shell firms in order to fraudulently obtain loans from a consortium managed by the Bank of India between 2009 and 2013. The loans were diverted elsewhere rather than being used for approved reasons. The estimated value of the suspected scam is ₹1,396 crore.

The ED had already seized assets totaling ₹310 crore in April 2025, of which ₹289 crore had been returned to the group of banks headed by Bank of India. According to the most recent inquiry, M/s ITCOL and its shell companies transferred ₹59.80 crore into M/s Anmol Mines Pvt. Ltd.'s (AMPL) bank accounts. The managing director of AMPL, Shakti Ranjan Dash, has been charged by the ED with willfully aiding Rakesh Kumar Sharma, the founder of M/s ITCOL, in money laundering by directing cash into mining operations in Odisha.

Investigators found that Shakti Ranjan Dash subsequently integrated the diverted money into AMPL’s accounts and recorded it as legitimate business income, thereby attempting to project “proceeds of crime” as clean money.

During the Bhubaneswar raids, the ED seized many luxury vehicles, cash,jewellery and property. Two lockers belonging to Dash were also frozen.

The ED confirmed that the seized assets belong to Shakti Ranjan Dash and his associated companies. Officials emphasized that the investigation is ongoing and further action will follow as evidence is scrutinized.

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BOI Classifies Loan Account of Reliance Communications as ‘Fraud’

 

Reliance Communications Limited, its promoter and former director, Shri Anil Dhirajlal Ambani, and its former director, Smt. Manjari Ashok Kacker, have had their loan accounts classified as "fraud" by Bank of India.

The Bank of India has also decided to label the loan accounts of RTL (the company's subsidiary), Smt. Grace Thomas (the former director of RTL and current director of the company), and a few other individuals (named in the RTL Letter) as "fraud." This decision was communicated in a letter to Reliance Telecom Limited (RTL), a subsidiary of the company.

Bank of India approved a 700 crore rupee term loan. As of 07/08/2025, there were 724.78 crores that were still owed. The loan was approved to cover a short-term discrepancy brought on by investments made in the purchase of 3G spectrum and associated capital expenditures. There was no guarantee when the loan was approved.

On June 30, 2017, the borrower's account became non-performing, with Rs 724.78 crores still owed. Although the Bank has been pursuing the borrowers and guarantors to collect the debt, they have not fulfilled their obligations.

Through M/s BDO India LLP, the bank carried out a forensic audit after the account became non-performing. The appropriate authority was presented with the results of the forensic audit. The following observations, findings, and conclusions of the forensic audit have led the competent authority to conclude that there are suspected fraudulent connotations after reviewing the audit:

In accordance with the review letter, Bank of India paid RCOM INR 350.00 Crores in a letter dated October 3, 2016, for "ongoing Capital exp, operational expenditure, repayment of existing liabilities other than related party / shareholder loans."

Loan Diversion: Fixed deposits totaled INR 350.00 crores.

A loan of Rs. 350 Cr was raised by the BOI on March 27, 2015, to cover spectrum fees. MF held the loan amount until April 7, 2015.A loan of Rs. 310.00 Cr was raised by SCB on March 30, 2015. FD was made on April 7, 2015, for a total of Rs. 632.50 Cr (BOI Rs. 350 Cr + SCB Rs. 310 Cr). RCOM obtained an equivalent loan of Rs. 632.50 Cr from BOI in order to pay the DOT Government of India for the Spectrum fees in relation to the aforementioned FD.

FD was liquidated on June 11, 2015, and the Rs. 632.50 Cr BOl loan was paid back. The payment of operational expenses was made with the full amount of the BOI loan.

The sanction letter stated that using the loan funds to invest in fixed deposits was prohibited; therefore, this is regarded as non-compliance with sanction terms of the loan.

Borrower requested that the company is undergoing Corporate Insolvency Resolution Process (CIRP) and thus the account should not be classified as Fraud.

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Bank of India(BOI) eyes listing of mutual fund, life insurance arms

Like other public sector banks like State Bank of India and Canara Bank, which have either investigated or started IPO plans for their subsidiaries, Bank of India (BOI) is thinking about offering its mutual fund and life insurance divisions as the initial candidates for possible market listing.

“We do see our mutual fund and insurance subsidiaries as the most likely to be off the block when the time is right,” said Rajneesh Karnatak, MD & CEO of Bank of India. “But not in this financial year. Our focus right now is on growing these platforms organically, expanding distribution, and ensuring they are strategically aligned with our core banking business.”

Public sector banks (PSBs) were asked by the finance ministry in June of this year to consider listing their subsidiaries on stock exchanges in order to generate revenue from their investment after further expanding their business activities. Before entering the capital markets, BOI is adopting a more methodical strategy, giving scale and value first priority. 

 As of July 2025, 7,62,969 investor folios across 20 equity, hybrid, and debt funds totaled Rs 13,183 crore under managed of BOI Mutual Fund, a wholly owned subsidiary of BOI. The life insurance division of BOI owns a 27.5% share in Star Union Daiichi. The life insurance generated Rs 8,033 crore in net premium income for FY25.

As of July 2025, the life insurance firm held a 3.25% market share among private insurers based on first premiums. Our subsidiaries are strategic levers that enhance our core banking operations and enable us to provide our clients with a full-spectrum financial ecosystem; they are not merely supplementary enterprises. 

 Life insurance and mutual funds are essential components of our client interaction approach and cross-selling strategy, Karnatak stated. In order to unlock short-term value, we are not in a haste to list these subsidiaries. Our priorities are increasing distribution, boosting operational metrics, increasing profitability, and foremost creating embedded value. We will think about listing the companies if we get to a point where they are established and scalable," he continues.

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Bank of India(BOI) Q1 result: Net profit soars 32.2% YoY

 

The public sector lender Bank of India (BOI) reported a 32.3 per cent year-on-year rise in net profit to ₹2,252 crore for the April–June quarter (Q1FY26), aided by a surge in treasury income.

Its Net Interest Income (NII) shrank by 3.3 per cent to ₹6,068 crore in Q1FY26, compared to ₹6,275 crore in the same quarter a year ago (Q1FY25). Net interest margin (NIM) declined by 52 basis points YoY to 2.55 per cent in Q1FY26 from 3.07 per cent in Q1FY25.

R. Karnatak, Managing Director and Chief Executive Officer, BOI, said there will be some additional pressure on margins in the second quarter. The repricing of deposits, which began in October 2024, will be completed by October, providing a benefit for margins. He stated that margins have bottomed out but did not give estimates for NIM.

 

The bank’s non-interest income, comprising treasury, fees, commissions, etc., grew by 66.4 per cent YoY to ₹2,166 crore in Q1FY26. Profit from treasury activities, including the sale and revaluation of investments, grew almost four times to ₹820 crore in Q1FY26 from ₹166 crore a year ago.

Provisions for non-performing assets (NPAs) declined to ₹1,104 crore in Q1FY26, down from ₹1,216 crore in Q1FY25.

 

Advances grew 12.02 per cent YoY to ₹6.72 trillion in Q1FY26. Retail, agriculture, and MSME advances grew by 16.27 per cent YoY to ₹3.28 trillion in the June quarter of FY26.

Total deposits increased 9.07 per cent YoY to ₹8.33 trillion. The share of low-cost deposits—current accounts and savings accounts (CASA)—declined to 39.88 per cent at the end of June 2025, down from 42.68 per cent a year ago. The bank has guided for 10-11 per cent growth in deposits in FY26.

 

The bank’s asset quality improved, with gross NPAs declining to 2.92 per cent in June 2025 from 4.62 per cent in June 2024. Net NPAs also declined from 0.99 per cent in June 2024 to 0.75 per cent in June 2025. The provision coverage ratio (PCR), including written-off accounts, improved to 92.94 per cent in June 2025 from 92.11 per cent in June 2024.

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CBI arrests proclaimed offender in historical bank fraud case involving Rs 5.69 lakh at Bank of India(BOI)

Satish Kumar Anand, who was designated a Proclaimed Offender in a bank fraud case involving ₹5.69 lakh from Bank of India, has been taken into custody by the Central Bureau of Investigation (CBI). The case began on May 5, 1978, when the CBI filed a complaint against three individuals:

1. The Branch Manager of a Bank of India branch
2. Satish Kumar Anand
3. Ashok Kumar

CBI alleged that the branch manager and Satish Kumar Anand worked together in a criminal conspiracy to cheat the bank.

• The bank manager, while working at the branch in 1977, sanctioned a loan to a private company.
• The loan was given based on fake receipts and false bills, showing goods had been sent out, when in reality, no such shipment took place.
• As a result, the bank lost ₹5.69 lakh, and this amount wrongfully benefited Satish Kumar Anand.

After investigating, CBI filed a chargesheet in the Special CBI Court in Dehradun.

• In 1985, the court convicted Satish Kumar Anand and Ashok Kumar, sentencing both to 5 years of rigorous imprisonment and a fine of ₹15,000.
• The bank manager was acquitted (found not guilty).

How Did Satish Kumar Anand Become a Proclaimed Offender?

After being convicted, Satish Kumar Anand disappeared and did not serve his jail sentence. The CBI Court in Dehradun, on 30 November 2009, officially declared him a Proclaimed Offender, which means he was legally marked as an absconder.

After years of being on the run, CBI arrested Satish Kumar Anand on 25th June 2025. He will now be presented before the Special CBI Court in Dehradun, where further legal action will be taken.

More details will be released soon.

Source -hellobanker.in

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