Revenue
Margin
Demand
Guidance
Tone
Event Participants
Executives
3 P. R. Rajagopal, Rajiv Mishra, Rajneesh Karnatak
Analysts
2 Ashok Kumar Ajmera, Unknown Analyst
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Global business | ₹17.55 lakh crores | +16.57% YoY; incremental growth of ₹2.49 lakh crores |
| Global deposits | ₹9.58 lakh crores | +14.90% YoY; incremental ₹1.24 lakh crores; domestic deposits grew faster at +16.5% YoY to ₹8.25 lakh crores |
| CASA | ₹3.02 lakh crores | +7.1% YoY (₹20,000+ crores incremental); CASA ratio at 36.68%, down ~3pp YoY on structural savings shift and bulk deposit reliance |
| Global advances | ₹7.98 lakh crores | +18.84% YoY; incremental ₹1.25 lakh crores; outpacing FY27 guidance of 15-16% |
| Domestic gross advances | ₹6.74 lakh crores | +19.20% YoY |
| RAM advances | ₹3.93 lakh crores | +19.75% YoY; constitutes ~54.30% of total advances |
| GNPA ratio | 1.81% | -111 bps YoY (2.92% in Jun '25) |
| NNPA ratio | 0.51% | -24 bps YoY (0.75% in Jun '25) |
| Provision coverage ratio | 93.63% | +69 bps YoY (92.94% in Jun '25) |
| Slippage ratio | 0.24% | -9 bps YoY; fresh slippages (incl. existing debit outstanding) ~₹1,800 crores vs ₹2,100 crores in Jun '25; Q1 typically the highest slippage quarter |
| Credit cost | 0.15% | -2 bps YoY (0.17% in Jun '25) |
| SMA (>₹5 crore) | ₹4,070 crores | 0.52% of standard book; down from ₹4,700 crores (Mar '26) and ₹7,000+ crores (Jun '25) |
| Net profit | ₹3,068 crores | +36% YoY vs ₹2,252 crores in Jun '25 |
| Operating profit | ₹5,051 crores | +25.99% YoY vs ₹4,009 crores in Jun '25 |
| Net interest income | ₹6,833 crores | +12.61% YoY vs ₹6,068 crores in Jun '25 |
| Non-interest income | ₹2,579 crores | +19.07% YoY vs ₹2,166 crores in Jun '25; treasury gains contributed in Q1 |
| ROA | ~1.0% | Q1 at ~1%; consistent with Q4 FY26 (1.01%); management guidance of 1%+ for FY27 |
| Cost-to-income ratio | ~46% | Improved in Q1; FY27 guidance of ~48-49% |
| Global NIM | 2.52% | -3 bps YoY (2.55% in Jun '25); FY27 guidance of 2.55-2.60% |
| CRAR | 18.69% | +130 bps YoY (17.39% in Jun '25) |
Geographic & Segment Commentary
- RAM (Retail, Agriculture & MSME): RAM advances grew 19.75% YoY to ₹3.93 lakh crores, ~54.30% of the book. Gold loans are a strategic growth driver — ₹57,000 crores book, ~25% YoY growth, yield ~9.10%, NPA under ₹100 crores (with 90-day sell-down process for NPAs). Personal loans deliberately constrained to ~3% YoY via guardrails on low-ticket and non-salaried segments; Q1 PSL income of ₹277 crores with scope for further PSL sales in Q2/Q3.
- Corporate & International: Total loan pipeline exceeds ₹1 lakh crores, of which corporate + international is ~₹70,000 crores. International business crossed ₹2.56 lakh crores for the first time; ~32% of the international book is low-margin trade finance being replaced with corporate lending (Indian and local corporates) across New York, London, Japan, Hong Kong and Singapore. GIFT City is a key lending strategy.
- Domestic Operations: Domestic deposits grew 16.5% YoY to ₹8.25 lakh crores; domestic gross advances grew 19.20% YoY to ₹6.74 lakh crores. ~22% of domestic credit sanctions are now digital; data lake-to-CRM lead flows have built ₹18,000+ crores of business. Cost of deposits down 15 bps YoY despite deposit mix pressure.
Company-Specific & Strategic Commentary
- Centralized Sales Vertical: Established a dedicated sales vertical with end-to-end responsibility for customer acquisition, business productivity and revenue growth across streams.
- Strategic Business Branch (Mumbai): New SBB focused on high-value pool buyouts, co-lending, trades business and supply chain financing.
- Digital Banking Expansion: Virtual personalized RuPay debit card launched via BOI Omni Neo app; BOI Star Choice current account allows customers to select last 7 digits of account number; central V-CIP center in Mumbai enables end-to-end digital account opening without manual intervention; Kenya mobile banking app is live with M-Paisa interaction.
- Cash Management Revamp: Bank of India Services Limited is deploying dedicated field staff to leverage existing corporate relationships for deposit growth and broader business opportunities.
- HR & Capability Building: STAR LIGHT program drives upskilling/reskilling across officer, clerical and substaff levels; mentor/mentee programs, coaching and succession planning in place; staff trained at domestic and international centers.
- Foreign Currency Fundraising: Targeting ~$4.3 billion combined — FCNR(B) $1.2 billion by Sep 30, OFCB/MTN $2 billion by Dec 31, and ECB ~$1 billion; FCNR rates of 6.25%-6.50% with ~50 bps clean spread (RBI covers hedging) and no CRR/SLR; board-approved 9x leverage product rolled out for FCNR customers.
- ATM Rationalization: Reduced ~300 loss-making CapEx-model ATMs as part of cost optimization, contributing to the improved cost-to-income ratio.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Global advances growth | 15%-16% YoY for FY27 | Unchanged; Q1 actual of 18.84% trending above guidance; supported by ₹1 lakh crore+ pipeline |
| Global deposits growth | 13%-14% YoY for FY27 | Unchanged; Q1 actual of 14.90%; FCNR/OCFB/MTN inflows to supplement domestic deposits |
| ROA | 1%+ consistently in FY27 | Q1 at ~1%; reiterated post-March results guidance |
| Global NIM | 2.55%-2.60% for FY27 | Q1 at 2.52%; assumes continued cost of deposit decline and yield on advances stabilization/improvement |
| Cost-to-income ratio | ~48%-49% for FY27 | Q1 at ~46%; ATM rationalization and cost optimization supporting |
| FCNR(B) deposits | $1.2 billion by Sep 30, 2026 | $200+ million already garnered; no CRR/SLR; ~50 bps spread on 5-year tenor |
| OFCB/MTN | $2 billion by Dec 31, 2026 | RBI window open till Dec 31, 2026 |
| ECB | ~$1 billion | In-principle approvals of ~$500 million already issued across 4-5 accounts |
| ECLGS disbursements | ~₹8,000 crores by scheme end | ₹6,000 crores sanctioned, ₹4,600 crores disbursed to date |
| Credit card base | 3 lakh by end FY27 | Systems revamped last year; growth acceleration intended |
Risks & Constraints
| Risk | Context |
|---|---|
| West Asia geopolitical fallout | Direct impact flagged in chemicals, ceramics, and oil/gas import-export sectors; supply chain disruptions elongating working capital cycles. SMA at 0.52% of standard book and fresh slippages controlled so far, but management is monitoring closely; ECLGS uptake (target ~₹8,000 crores) signals MSME stress absorption requirement. |
| NIM compression | Global NIM at 2.52% (-3 bps YoY) against FY27 guidance of 2.55-2.60%; achievement depends on sustained cost of deposit decline and yield stabilization amid West Asia-driven rate uncertainty. |
| Deposit mix deterioration | CASA ratio and retail term deposits down ~3% each YoY, driven by structural shift in household savings toward equity/mutual funds/insurance and reliance on ₹3-25 crore and bulk deposits to fund robust credit growth. |
| Personal loan segment risk | Low-ticket and non-salaried personal loans identified as industry-wide risk; growth deliberately capped at 3% YoY. Guardrails may limit market share in a growth segment but protect asset quality. |
| Treasury income sustainability | Strong Q1 treasury gains may not recur; adverse yield movements expected. Management cites ~60% repo-external-benchmark-linked advances book as partial offset, but investment book faces stress in a rising-rate scenario. |
| Monsoon & inflation | Uneven monsoon progress poses food price risks; could impact rural demand, agriculture advances and the inflation trajectory. |
Q&A Highlights
Asset Quality & West Asia Stress
- Question: Given geopolitical developments, are you seeing stress building in MSME and small loan accounts? What is the status of ECLGS 5.0 sanctions and disbursements? (Ashok Kumar Ajmera)
- Answer: No visible stress yet — SMA (>₹5 crore) down to ₹4,070 crores (0.52% of standard book) from ₹4,700 crores in Mar '26 and ₹7,000+ crores in Jun '25; fresh slippages ~₹1,800 crores vs ₹2,100 crores a year ago, with Q1 typically the highest slippage quarter. Sectors under close watch: chemicals, ceramics and oil/gas importers. ECLGS: ~₹6,000 crores sanctioned, ₹4,600 crores disbursed; ~₹8,000 crores expected by scheme end to help MSMEs tide over elongated working capital cycles. (Rajneesh Karnatak)
FCNR(B) & Foreign Fundraising
- Question: Where does Bank of India stand on FCNR(B) and other RBI relaxation windows for foreign deposits, and what is the plan through September and the full year? (Ashok Kumar Ajmera)
- Answer: Target of $1.2 billion FCNR(B) by Sep 30 — $200+ million already garnered from the US, Canada, Africa, UK, East Asia and all 13 FGMs domestically. Rates: 6.25% (3-year), 6.30% (3-4 year), 6.50% (5-year); ~50 bps clean spread on 5-year with RBI covering hedging cost; no CRR/SLR. Board-approved 9x leverage product rolled out. Additional $2 billion via OFCB/MTN by Dec 31 and ~$1 billion ECB (in-principle approvals ~$500 million in 4-5 accounts) — total ~$4.3 billion. (Rajneesh Karnatak)
FY27 Guidance: ROA, NIM, CIR & Rate Dynamics
- Question: What is the guidance for ROA, NIM and CIR for FY27, and can 2.52% NIM and ~46% CIR be held in Q2? (Niteen, Aurum Capital)
- Answer: ROA guidance of 1%+ on a consistent quarterly basis in FY27 (Q1 ~1%; Q4 FY26 1.01%). Global NIM guidance of 2.55%-2.60% — Q1 at 2.52% reflects the rate scenario and West Asia situation. CIR ~48-49% for FY27 vs ~46% in Q1. Cost of deposits is declining; yield on advances expected to pause its decline and improve via MCLR book growth, 19 emerging corporate credit branches (₹25-250 crore tickets with better spreads/fees) and international book re-strategizing away from low-margin trade finance. (Rajneesh Karnatak)
GIFT City, Gold Loans & International Pipeline
- Question: What are the plans for GIFT City, gold loan scaling, and the international franchise's position versus the Finance Minister's FCNR targets? (Unknown Analyst/Manoj)
- Answer: GIFT City is a key lending strategy; corporate pipeline ~₹70,000 crores (domestic + international) within a total pipeline of ₹1 lakh crore+. Gold loans: ~₹57,000 crores book, yield ~9.10%, NPA <₹100 crores, ~25% YoY growth, with a 90-day notice-and-sell process for NPAs — a clear RAM growth strategy. FCNR target of $1.2 billion is deliberate; the bank is also raising $2 billion via OFCB/MTN and ~$1 billion via ECB. No comment on PSU bank merger speculation. (Rajneesh Karnatak)
Personal Loans & Credit Cards
- Question: Why did personal loans grow only 3% YoY despite strong overall retail performance? How many credit cards were added YoY? (Unknown Analyst)
- Answer: Personal loan growth was deliberately constrained via guardrails on low-ticket and non-salaried loans after observing industry-wide risk; focus is on salaried customers with salary credits/mandates to Bank of India. Given the West Asia crisis and monsoon concerns, the bank prioritizes asset quality protection. Credit card systems were revamped; target is 3 lakh card base by end FY27. (Rajneesh Karnatak, Rajiv Mishra)
CASA Decline, ATM Rationalization & Mutual Fund IPO
- Question: Why is cost of deposits down 15 bps despite CASA ratio and retail term deposits each down ~3%? Why were 300 ATMs reduced? Any plans for a Bank of India Mutual Fund public issue? (Unknown Analyst)
- Answer: CASA/retail TD compression reflects structural shifts in household savings toward equity, mutual funds, insurance and gold/real estate, plus bulk deposit raising (₹3-25 crore campaign and above-₹3 crore buckets) to fund robust credit growth — yet the blended cost of deposits is down 15 bps. ATM rationalization targeted loss-making CapEx-model ATMs as part of cost optimization. Mutual fund AUM is ₹16,000-17,000 crores — too early for an IPO; will revisit at the right time. (Rajneesh Karnatak)
Key Takeaway
Bank of India delivered a strong Q1 FY27, with net profit up 36% YoY to ₹3,068 crores, operating profit up 26% to ₹5,051 crores, NII up 12.6% to ₹6,833 crores and non-interest income up 19.1%. Global advances grew 18.84% YoY to ₹7.98 lakh crores, outpacing the 15-16% FY27 guidance, led by RAM advances (up 19.75%, 54.3% of book) and an international book crossing ₹2.56 lakh crores. Asset quality improved — GNPA 1.81% (-111 bps YoY), NNPA 0.51%, PCR 93.63%, slippage ratio 0.24%, SMA (>₹5 crore) at ₹4,070 crores — despite West Asia stress in chemicals, ceramics and import-export sectors, partly offset by ~₹8,000 crores of expected ECLGS disbursements. Management kept FY27 guidance unchanged (advances +15-16%, deposits +13-14%, ROA 1%+, NIM 2.55-2.60%, CIR ~48-49%) and targets ~$4.3 billion in foreign-currency fundraising through December. Watch points: CASA/retail deposit mix erosion, personal loan growth capped at 3%, and treasury income sustainability.