Bank of India Reports Robust Q3 Growth: Business Crosses ₹16 Lakh Crore, Profit Up 7%

Mumbai, January 21, 2026 – Public sector lender Bank of India (BoI) announced a strong set of numbers for the third quarter of FY26, demonstrating robust growth across key business parameters and a significant improvement in asset quality. The bank's global business crossed the milestone of ₹16 lakh crore, underscoring its expanding market presence.

Business Growth: A Standout Performance

BoI reported impressive year-on-year (YoY) growth in its core operations. Global advances grew by 13.63%, driven by a 15.16% surge in domestic credit. The Retail, Agri, and MSME (RAM) segments were the key growth engines, with advances increasing by 20.64%, 16.69%, and 15.77% respectively. The share of RAM in the total advances portfolio now stands at a healthy 58.54%.

On the liability side, global deposits grew by 11.64%, with domestic deposits up 12.80%. The bank maintained a stable CASA (Current Account Savings Account) ratio of 37.97%.

Profitability Metrics Show Consistent Improvement

The bank's profitability witnessed a steady climb:

Net Profit for Q3FY26 increased by 7% YoY to ₹2,705 crore.
Operating Profit saw a sharper rise of 13% YoY to ₹4,193 crore.
Net Interest Income (NII) for the quarter stood at ₹6,461 crore.
Non-Interest Income showed remarkable growth, jumping 30% YoY to ₹2,279 crore, indicating a diversified revenue stream.

For the nine-month period (9M-FY26), the net profit grew by 14% YoY to ₹7,511 crore, while operating profit was up 4%.

Asset Quality Strengthens Significantly

One of the most notable highlights of the quarter was the continued improvement in asset quality, a key focus area for the bank.

Gross NPA Ratio improved sharply by 143 basis points (bps) YoY to 2.26% (from 3.69% in Dec 2024).
Net NPA Ratio improved by 25 bps YoY to a low 0.60%.
The Provision Coverage Ratio (PCR) reached a robust 93.60%, providing a strong buffer against potential stress.
Credit Cost for the quarter improved to 0.34%.

Capital Position Remains Healthy

The bank's capital adequacy remains comfortable, well above regulatory requirements. The Capital Adequacy Ratio (CAR) stood at 17.09% as of December 31, 2025, with the Common Equity Tier-1 (CET-1) ratio at 13.76%.

Management & Strategic Focus

The results reflect Bank of India's successful execution of its strategy focused on:

Accelerating RAM Lending: Prioritizing growth in the high-potential retail, agriculture, and MSME segments.
Prudent Risk Management: Aggressive resolution of stressed assets leading to a cleaner balance sheet.
Operational Efficiency: Growth in fee income and stable margins contributing to profitability.
Digital Transformation: Over 96% of total transactions now happen through alternate channels, with UPI customers crossing 242 lakh.

Analyst & Market View

The market is expected to view these results positively. The consistent reduction in NPAs, crossing of the ₹16 lakh crore business milestone, and steady profit growth signal a resilient performance in a dynamic economic environment. The improved PCR and comfortable capital adequacy provide a solid foundation for future growth.

Conclusion: Bank of India's Q3FY26 results paint a picture of a public sector bank on a firm growth trajectory. With a strengthened balance sheet, focused lending strategy, and improving profitability, the bank is well-positioned to capitalize on opportunities in the evolving Indian banking landscape.