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The Bank of India reported a 7.47 per cent year-on-year rise in net profit to Rs 2,705 crore for the third quarter of the current financial year FY26, reflecting improved asset quality, steady income growth and better operating performance.
As per the exchange filing by the bank, profit after tax (PAT) also increased by 5.88 per cent on a quarter-on-quarter basis, compared to Rs 2,555 crore in Q2 FY26. The bank's performance during the quarter was supported by an improvement in key asset quality indicators and controlled credit costs. The bank also informed that the gross non-performing asset (NPA) ratio improved significantly to 2.26 per cent, showing an improvement of 143 basis points on a year-on-year basis. The net NPA ratio also declined to 0.60 per cent, improving by 25 basis points YoY. Provision coverage ratio (PCR) strengthened further, improving by 112 basis points YoY and standing at 93.60 per cent. An NPA (Non-Performing Asset) ratio shows the percentage of a bank's total loans that are not generating income because borrowers aren't paying, indicating asset quality and financial health. The Gross NPA Ratio (Total NPAs / Total Loans) reflects all bad loans, while the Net NPA Ratio (Gross NPAs - Provisions / Total Loans) shows the actual risk after deducting expected losses, with lower ratios generally signalling better stability. Slippages also showed improvement during the period. The slippage ratio for 9M-FY26 improved by 36 basis points YoY to 0.64 per cent, while the slippage ratio for Q3 FY26 improved by 3 basis points YoY and stood at 0.16 per cent. The slippage ratio in banking measures how quickly a bank's "good" loans (standard assets) turn into "bad" loans (Non-Performing Assets or NPAs) within a specific period. The bank also informed that the operating profit for 9M-FY26 increased by 4 per cent YoY and stood at Rs 12,023 crore. Operating profit for Q3 FY26 rose by 13 per cent YoY to Rs 4,193 crore. Net profit for 9M-FY26 increased by 14 per cent YoY to Rs 7,511 crore, while net profit for Q3 FY26 grew by 7 per cent YoY to Rs 2,705 crore. Net interest income (NII) for 9M-FY26 stood at Rs 18,442 crore, while NII for Q3 FY26 was Rs 6,461 crore. During Q3 FY26, interest income increased to Rs 18,928 crore from Rs 18,211 crore in Q3 FY25, while interest expenses stood at Rs 12,467 crore. The bank's deposits grew by 11.64 per cent YoY, with domestic deposits rising by 12.80 per cent YoY. The bank's domestic net interest margin improved to 2.80 per cent in Q3 FY26, compared to 2.66 per cent in Q2 FY26, indicating better margin performance during the quarter. The bank also stated that during the third quarter of FY26, 7 Lakh plus customers were added, taking the total UPI customers to 242 Lakh plus. (ANI)
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