Bank of India reported a profit increase of between 15% and 19% for the fourth quarter of the 2026 fiscal year [1, 3].
These results signal a strengthening of the bank's balance sheet through improved asset quality. By reducing non-performing assets, the institution has lowered its provisioning needs, which allows for more aggressive loan growth and higher profitability.
Standalone net profit for the quarter rose 15% to ₹3,016 crore [1], while consolidated net profit increased 18.67% to ₹3,087.76 crore [3]. The bank's asset quality metrics showed significant improvement, with the gross non-performing asset (NPA) ratio falling to 1.98% [1]. The net NPA ratio similarly improved to 0.56% [1].
Rajneesh Karnatak, MD and CEO of Bank of India, discussed the bank's trajectory during an interview at the CNBC TV18 studio [0]. He said the bank expects future expansion and risk management.
"We expect global advances to grow at 15-16%," Karnatak said [0].
To manage risk, the bank has projected slippages for FY27 at Rs 4,500 crore [0]. This is a decrease from the FY26 slippages, which were Rs 5,500 crore [0].
Additionally, the bank expects to facilitate loans under the Emergency Credit Line Guarantee Scheme (ECLGS) totaling up to Rs 12,000 crore [3]. This initiative is part of the bank's broader strategy to support business credit, while maintaining a disciplined approach to asset quality.
“"We expect global advances to grow at 15-16%."”
The reduction in both gross and net NPA ratios indicates that Bank of India is successfully cleaning up its loan portfolio. By forecasting lower slippages for FY27 compared to FY26, the bank is signaling a period of stabilized credit quality, which provides the necessary headroom to pursue the projected 15-16% growth in global advances without compromising financial stability.
