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Bank of India Q3 Net Profit Rises 7.5% to ₹2,705 Crore on Strong Asset Quality

Bank of India reported a 7.47% year-on-year increase in net profit to ₹2,705 crore for the third quarter of FY26. The strong performance was supported by a significant improvement in asset quality, with the gross NPA ratio falling to 2.26%. Operating profit for the quarter also saw a healthy 13% YoY growth. Furthermore, the bank added over 7 lakh customers during the quarter, boosting its total UPI customer base.

Key Points: Bank of India Q3 FY26 Net Profit Up 7.5% to ₹2,705 Crore

  • Net profit up 7.47% YoY
  • Gross NPA ratio improves to 2.26%
  • Operating profit rises 13% in Q3
  • Deposits grow by 11.64% YoY
3 min read

Bank of India net profit surges 7.47% YoY to Rs 2,705 crore in Q3 FY26

Bank of India reports 7.47% YoY rise in Q3 FY26 net profit to ₹2,705 crore, driven by improved asset quality with gross NPA ratio falling to 2.26%.

"The bank's performance during the quarter was supported by an improvement in key asset quality indicators and controlled credit costs. - Exchange Filing"

Mumbai, January 22

The Bank of India reported a 7.47 per cent year-on-year rise in net profit to Rs 2,705 crore for the third quarter of the current financial year FY26, reflecting improved asset quality, steady income growth and better operating performance.

As per the exchange filing by the bank, profit after tax (PAT) also increased by 5.88 per cent on a quarter-on-quarter basis, compared to Rs 2,555 crore in Q2 FY26. The bank's performance during the quarter was supported by an improvement in key asset quality indicators and controlled credit costs.

The bank also informed that the gross non-performing asset (NPA) ratio improved significantly to 2.26 per cent, showing an improvement of 143 basis points on a year-on-year basis.

The net NPA ratio also declined to 0.60 per cent, improving by 25 basis points YoY. Provision coverage ratio (PCR) strengthened further, improving by 112 basis points YoY and standing at 93.60 per cent.

An NPA (Non-Performing Asset) ratio shows the percentage of a bank's total loans that are not generating income because borrowers aren't paying, indicating asset quality and financial health.

The Gross NPA Ratio (Total NPAs / Total Loans) reflects all bad loans, while the Net NPA Ratio (Gross NPAs - Provisions / Total Loans) shows the actual risk after deducting expected losses, with lower ratios generally signalling better stability.

Slippages also showed improvement during the period. The slippage ratio for 9M-FY26 improved by 36 basis points YoY to 0.64 per cent, while the slippage ratio for Q3 FY26 improved by 3 basis points YoY and stood at 0.16 per cent.

The slippage ratio in banking measures how quickly a bank's "good" loans (standard assets) turn into "bad" loans (Non-Performing Assets or NPAs) within a specific period.

The bank also informed that the operating profit for 9M-FY26 increased by 4 per cent YoY and stood at Rs 12,023 crore. Operating profit for Q3 FY26 rose by 13 per cent YoY to Rs 4,193 crore.

Net profit for 9M-FY26 increased by 14 per cent YoY to Rs 7,511 crore, while net profit for Q3 FY26 grew by 7 per cent YoY to Rs 2,705 crore.

Net interest income (NII) for 9M-FY26 stood at Rs 18,442 crore, while NII for Q3 FY26 was Rs 6,461 crore. During Q3 FY26, interest income increased to Rs 18,928 crore from Rs 18,211 crore in Q3 FY25, while interest expenses stood at Rs 12,467 crore.

The bank's deposits grew by 11.64 per cent YoY, with domestic deposits rising by 12.80 per cent YoY. The bank's domestic net interest margin improved to 2.80 per cent in Q3 FY26, compared to 2.66 per cent in Q2 FY26, indicating better margin performance during the quarter.

The bank also stated that during the third quarter of FY26, 7 Lakh plus customers were added, taking the total UPI customers to 242 Lakh plus.

- ANI

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Reader Comments

S
Sarah B
As an investor, these numbers are very encouraging. The steady improvement quarter-on-quarter shows good management. The PCR at 93.6% is robust. However, I'd like to see the net interest margin improve a bit more. 2.8% is decent for a PSB, but there's room to grow.
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Priya S
Adding 7 lakh+ UPI customers in a quarter is huge! This shows the digital push is working. As a customer, I've found their mobile banking app much better lately. If they keep profits up, they should invest more in tech and reduce those pesky service charges.
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Aman W
Solid numbers, but let's not forget this is our money - public sector bank. While profits are good, I hope they are also focusing on financial inclusion in rural areas. Growth should be inclusive. The deposit growth of nearly 12% is a sign of public trust.
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Karthik V
The slippage ratio improvement to 0.16% is very impressive. It means they are managing their loan book much better and fewer loans are going bad. This is crucial for long-term stability. More power to the team at BoI! 🇮🇳
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Michael C
Respectfully, a 7.47% YoY profit growth is okay, but not spectacular in the current economic climate. Private banks are growing faster. The real test will be sustaining this asset quality. The numbers are moving in the right direction, but the pace could be better.

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