Bank of India Q1 FY27: Profit up 36%, GNPA 1.81%

Key takeaway from Q1 FY27

Bank of India (BSE: 532149) reported a stronger June 2026 quarter (Q1 FY27) with net profit rising 36% year-on-year to ₹3,068 crore, supported by balance-sheet expansion and improved asset quality. Operating profit increased 25.99% YoY to ₹5,051 crore, while credit cost remained low at 0.15%. The bank also reported a further decline in stressed assets, with gross NPA improving to 1.81% and net NPA to 0.51% as of June 2026. The results were announced on July 24, 2026, after the board approved unaudited standalone and consolidated financials.

What the bank reported on July 24, 2026

The lender said global business rose 16.57% YoY to ₹1,755,699 crore as of June 2026. Global deposits increased 14.90% YoY to ₹957,924 crore, while global advances grew 18.84% YoY to about ₹797,775 crore. Management commentary around the quarter pointed to steady business momentum, even as margins were slightly lower compared to the year-ago period.

Profitability: operating profit, net profit, ROA and ROE

Net profit for Q1 FY27 came in at ₹3,067.90 crore (also cited as ₹3,068 crore), up from ₹2,252.12 crore in Q1 FY26, translating into a 36.23% YoY increase. Operating profit rose to ₹5,051 crore, compared with ₹4,009 crore a year earlier. The bank reported improvements in profitability ratios as well, with return on assets (ROA) at 1.01% and return on equity (ROE) at 16.12%.

Core income: NII growth and fee-led support

Net interest income (NII) rose 12.61% YoY to ₹6,833 crore. Non-interest income increased 19.07% YoY to ₹2,579 crore, providing an additional lever to earnings during the quarter. Total interest earned was reported at ₹19,949.32 crore, up 8.72% YoY from ₹18,350 crore.

Margins: NIM steady but slightly lower YoY

Global net interest margin (NIM) was reported at 2.52% for June 2026, compared with 2.55% in the year-ago period. Management guidance indicated an expectation of global NIM in the 2.55% to 2.60% range for FY27, above the Q1 level.

Balance sheet growth: deposits and advances stayed strong

On liabilities, domestic deposits grew 16.15% YoY to ₹825,000 crore. CASA stood at 36.68%, with CASA balances increasing to ₹302,000 crore. On assets, domestic gross advances grew 19.20% YoY to ₹674,000 crore, reflecting broad-based credit demand.

Within the loan book, RAM advances (retail, agriculture and MSME) rose 19.75% YoY to ₹393,000 crore and accounted for 54.30% of total advances. The RAM mix is a closely watched metric for public sector banks as it reflects diversification away from large-ticket wholesale exposures.

Asset quality: GNPA at historical lows, credit cost contained

Bank of India reported continued improvement in asset quality metrics. Gross NPA ratio improved by 111 basis points YoY to 1.81%, while net NPA ratio improved by 24 basis points YoY to 0.51%. Sequentially, the gross NPA ratio declined to 1.81% from 1.98% QoQ.

The bank also reported a slippage ratio of 0.24% and credit cost of 0.15% for June 2026. Provision coverage ratio (PCR) improved to 93.63%, indicating stronger loss-absorption capacity against stressed assets.

Capital position: CRAR improves

Capital adequacy improved, with CRAR reported at 18.69% as of June 30, 2026, compared with 17.39% as of June 2025. The combination of improving asset quality and a stronger capital position is important for sustaining growth, especially with management projecting mid-teens loan growth.

Market reaction: stock little changed after results

In early trade following the results, the stock was reported to be little changed, up around 0.3% to ₹142.62 from ₹142.20. The same market snapshot placed the stock below its 52-week high of ₹178.36, and above its 52-week low of ₹108.81.

Guidance and what investors will track next

Management said it expects ROA to stay at 1% or above through FY27. It reiterated guidance for global advances growth of 15% to 16% YoY in FY27 and global deposit growth of 13% to 14%.

For investors, the next set of data points to track will include whether the bank holds margins closer to its full-year NIM guidance band, and whether credit cost stays near current lows as the loan book expands.

Key numbers at a glance (all amounts in ₹ crore)

Conclusion

Bank of India’s Q1 FY27 results showed a combination of strong balance-sheet growth and improved asset quality, with net profit rising to ₹3,068 crore and GNPA falling to 1.81%. The bank’s stated FY27 guidance on NIM, ROA, advances and deposits will remain the key reference points in the coming quarters, alongside trends in credit cost and slippages.