Bank of India Q4 net profit jumps 82%; lender eyes 12% loan growth in FY26

New Delhi: Treasury gains and recoveries from written-off accounts in the January-March period helped state-owned Bank of India to report an 82 percent jump in its Q4 net profit at Rs 2,626 crore on Friday.

The core net interest income grew by 2 percent to Rs 6,063 crore for the three months, but the other income rose 96 percent to Rs 3,428 crore.

Recoveries from written-off accounts jumped 195 percent to Rs 1,193 crore, while treasury gains were up 87 percent at Rs 711 crore, which contributed to the jump in the other income.

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The net interest margin (NIM) narrowed to 2.61 percent, down from 2.92 percent in the year-ago period, and it was this compression which led to the softness in the core income growth even though there was a 13.74 percent growth in advances.

The overall deposits were up 10.65 percent during the reporting quarter, and the share of the low-cost current and savings account balances declined to 40.28 percent.

Its managing director and chief executive Rajneesh Karnatak said the lender is targeting a loan growth of 12-13 percent in FY26 and a deposit growth of 11-12 percent.

At present, the bank's overall corporate credit pipeline stands at Rs 60,000 crore, the MD said.

He said the pressure on NIMs is likely to continue, especially with expectations of a reduction in the policy repo rate by the RBI in the new year.

The bank's overall capital adequacy stood at 17.77 percent with the core buffer levels at 14.84 percent as on March 31, 2025.

In the wake of the ongoing armed conflict between India and Pakistan, the MD said Bank of India is adhering to the advisories that are coming from the RBI and CERT-IN with respect to the cybersecurity.

Additionally, the finance ministry has also given an advisory to ensure adequate cash is kept in automated teller machines (ATMs), which is being followed, he added.

The bank scrip closed 2.27 percent up at Rs 110.20 a piece on the BSE, as against a 1.10 percent correction on the benchmark on Friday.

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