Bank of India (BANKINDIA) Q1 25/26 earnings summary

Executive summary

• Q1 FY2026 saw robust business growth with global business up 10.37% year-over-year to INR 15,05,000 crore and global advances rising 12.02% to INR 6,72,000 crore.

• Net profit increased 32.27% year-over-year to INR 2,252 crore, with operating profit up 9% to INR 4,009 crore.

• Asset quality improved: gross NPA ratio fell to 2.92%, net NPA to 0.75%, and provision coverage ratio rose to 92.94%.

• Non-interest income surged 66% year-over-year, driven by higher investment profits and recoveries.

• Digital initiatives and branch expansion continue to drive operational efficiency and customer acquisition.

Financial highlights

• Global deposits grew 9.07% year-over-year to INR 8,33,000 crore; domestic deposits up 9.62% to INR 7,10,000 crore.

• Net interest income declined 3% year-over-year to ₹6,068 crore, while interest income rose 8%.

• Cost-to-income ratio at 51.3%, with guidance to stabilize around 51% for FY2026.

• ROA for Q1 FY2026 at 0.82%, with full-year guidance at 0.90%.

• Standalone total income for Q1 FY26 was ₹20,51,829 lakh, up from ₹18,24,002 lakh in Q1 FY25.

Outlook and guidance

• Global advances growth targeted at 12%-13%, global deposit growth at 10%-11% for FY2026.

• Net NPA and credit cost guidance at 0.70% for FY2026.

• Slippage ratio guidance at 1.20% for FY2026.

• NIM expected to bottom at 2.55% and range between 2.5%-2.6% for FY2026, with improvement anticipated in Q3 and Q4.

• CASA ratio targeted at 40% by year-end.

• Gross cash recovery target set at INR 9,500 crore for FY2026.

• Approval for capital plan of ₹5,000 crore and infrastructure bond issuance of ₹20,000 crore for FY26.