Bank of India Q2 Profit Rises to Rs 3,202 Crore, Up About 25%
The bank's operating profit rose about 33% to Rs 5,089 crore while its gross NPA ratio fell to 1.60%.
Key Takeaways
- Net profit was Rs 3,202 crore in Q2 FY27, up about 25% year on year from Rs 2,555 crore.
- Operating profit rose about 33% to Rs 5,089 crore.
- Gross NPA ratio fell to 1.60% from 2.54% a year ago; net NPA ratio fell to 0.42% from 0.65%.
- Recoveries from written-off accounts were Rs 978 crore against Rs 337 crore a year ago.
- Net interest margin was 2.47%, down from 2.52% in the June quarter.
Bank of India reported a net profit of Rs 3,202 crore for the second quarter of FY27 (July to September 2026), up about 25% from Rs 2,555 crore in the same quarter a year earlier. The bank announced its results on Friday, 23 October 2026.
Operating profit rose about 33% year on year to Rs 5,089 crore. Net interest income grew about 18.5% to Rs 7,007 crore, and bad loans fell sharply, with the gross NPA ratio at 1.60% against 2.54% a year ago.
Bank of India Q2 FY27 at a glance
| Detail | Value |
|---|---|
| Net profit | Rs 3,202 crore, up about 25% year on year |
| Operating profit | Rs 5,089 crore, up about 33% year on year |
| Net interest income | Rs 7,007 crore, up about 18.5% year on year |
| Non-interest income | Rs 2,770 crore, up about 25% year on year |
| Gross NPA ratio | 1.60%, against 2.54% a year ago |
| Net NPA ratio | 0.42%, against 0.65% a year ago |
| Net interest margin | 2.47%, against 2.41% a year ago |
| Capital adequacy ratio | 17.78%, against 16.69% a year ago |
| Half-year net profit | Rs 6,270 crore, up about 30% |
Why recoveries from written-off loans did so much of the lifting
Profit grew faster than net interest income because of other income. Recoveries from written-off accounts came in at Rs 978 crore, against Rs 337 crore a year ago, a rise of about 190%. Non-interest income rose to Rs 2,770 crore from Rs 2,220 crore.
Lending also grew. Global advances rose about 20.6% year on year to Rs 8.55 lakh crore, and global deposits grew about 21.6%. Retail advances grew 19.27%, MSME advances 20.27% and agriculture advances 16.34%.
| When | What happened |
|---|---|
| Quarter ended 30 September 2025 | Net profit of Rs 2,555 crore, gross NPA ratio of 2.54% |
| Quarter ended 30 September 2026 | Net profit of Rs 3,202 crore, gross NPA ratio of 1.60% |
| Half-year ended 30 September 2026 | Net profit of Rs 6,270 crore, up about 30% year on year |
What the fall in bad loans says about the quality of the book
Gross NPAs stood at Rs 13,648 crore, down about 24% from a year ago, and net NPAs were Rs 3,557 crore. The slippage ratio was 0.15%. Credit cost was 0.12% and the provision coverage ratio was 94.45%.
The bank also looks more efficient. Its cost to income ratio improved by 507 basis points to 47.95%. Return on assets was 1.01% and return on equity was 16.36%.
What Bank of India's results show about earning more from the same loans
For founders and small business owners, the loan growth in MSME and retail lines shows the bank is still lending to smaller borrowers. For investors, profit that leans on recoveries from written-off loans is worth watching, since that income can change from one quarter to the next.
Margins are another point. Net interest margin was 2.47%, up 6 basis points from a year ago but down from 2.52% in the June quarter. The domestic CASA ratio, the share of low-cost current and savings deposits, was 34.16%, which can push up the cost of funds.
Can Bank of India keep recoveries and margins strong in the next quarters?
The next results will show whether recoveries from written-off accounts stay high and whether the net interest margin recovers from the quarter-on-quarter dip. The CASA ratio and the pace of fresh slippages are the other numbers to follow.
On capital, the bank ended September 2026 with a capital adequacy ratio of 17.78% and a CET-1 ratio of 15.49%, which gives room to keep growing its loan book. Digital use is also rising: digital transactions were up 25% to 2.21 billion.
