Bank of India Tuesday reported a 32% year-on-year (YoY) rise in its standalone net profit at ₹2,252 crore for the April-June quarter, driven by higher interest income, improved asset quality, and reduced provisions. Last year, the standalone net profit of the public sector bank stood at ₹1,703 crore in the same quarter.

According to the lender’s filing with the stock exchanges, the operating profit grew by 9% YoY to ₹4,009 crore. The return on assets and return on equity stood at 0.82% and 13.55%, respectively. The net interest margin for global and domestic was at 2.55% and 2.82%, respectively, in the quarter.

Global advances grew by 12.02%, while domestic advances surged by 11.24% YoY. Retail advances saw a 20% growth YoY, while MSME advances grew by 17% during the same period. Agriculture advances grew by 12% YoY. Deposits witnessed a 9.07% growth YoY, with domestic deposits growing by 9.62%. CASA deposits grew by 2.5% YoY, while the CASA ratio stood at 39.88% as of June 30.

On the asset quality front, the net NPA ratio improved by 24 bps YoY to 0.75%. The provision coverage ratio bettered to 92.94%, up from 92.39% as of March 2025. Slippage ratio for FY26 improved by 2 bps YoY to 0.33%. Credit cost for FY26 climbed by 17 bps YoY to 0.68%. The capital adequacy ratio stood at 17.39% at the end of Q1.

To date, more than 10 million customers have been onboarded through the Mobile Banking App ‘BOI Mobile Omni Neo Bank’. On the digital front, the share of digital transactions rose from around 94.2% in Q1 FY25 to nearly 95.4% in Q1 FY26.

“We have maintained our profitability momentum while continuing to strengthen our balance sheet. Our retail and treasury segments have shown robust performance, and we expect credit growth to accelerate in the coming quarters,” said MD & CEO Rajneesh Karnatak.

Further, answering a question on how the bank can increase its margins, Karnatak said, "Saving rates have been reduced by 2.75% to 2.5% which is where we will be able to save more."

On a consolidated basis, Bank of India reported a net profit of ₹1,830 crore in Q1 FY26 compared to ₹1,888 crore in Q1 FY25. The dip was attributed to an exceptional loss of ₹518 crore, arising from the reversal of the carrying value of investments in associates following the government-mandated amalgamation of certain Regional Rural Banks.

Shares of Bank of India closed 0.72% higher at ₹112.30 on the NSE ahead of the results announcement on Tuesday.