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Bank of India’s second quarter (Q2FY27) standalone net profit rose 25 per cent year-on-year (y-o-y) to ₹3,202 crore, with the bottomline being supported by a healthy increase in net interest income and other income even as there was a significant jump in non-performing asset (NPA) provisioning.

Global deposits (domestic and overseas) of India’s sixth largest public sector bank, which logged a net profit of ₹2,555 crore in the year ago period, grew at faster clip (of 21.60 per cent y-o-y) as compared to global advances (of 20.58 per cent).

Rajneesh Karnatak, MD & CEO, said: “As we progress through the second half of FY27, the emphasis will be on strengthening the bank’s competitive position, deepening customer relationships, and leveraging emerging opportunities across the banking landscape.”

“Against this backdrop, in FY27, we expect global advances and global deposits to grow at around 15-16 per cent and 16-17 per cent, respectively,” he added.

Net interest income (interest income less interest expended) was up 18.50 per cent y-o-y to ₹7,007 crore ( ₹5,912 crore in Q2FY26).

Other income, comprising commission income from non-fund based banking activities, fees, earnings from forex and derivative transactions, profit and loss (including revaluation) from investments, and recoveries from accounts previously written off, rose 25 per cent y-o-y to ₹2,770 crore ( ₹2,220 crore).

This is mainly due to recovery in written-off account and profit from exchange transactions soaring 190 per cent (to ₹978 crore vs ₹337 crore) and 157 per cent ( ₹411 crore vs ₹160 crore), respectively.

Global net interest margin (NIM) improved to 2.47 per cent in the reporting quarter (up from 2.41 per cent).

“The increase in the repo rate will help us in improving our NIM (66 per cent of the bank’s advances are repo-linked)…As far as the liability side is concerned, we expect some increase in the deposit rates. But that will take its own time,” Karnatak said.

NPA provisions shot up 114 per cent y-o-y to ₹1,010 crore against ₹472 crore. Tax expense rose 32 per cent y-o-y to ₹1,089 crore ( ₹825 crore).

Gross NPAs position improved to 1,60 per cent of gross advances as at September-end 2026 against 2.54 per cent as at September-end 2025. Net NPAs position too improved to 0.42 per cent of net advances against 0.65 per cent.

Global deposits grew 21.60 per cent y-o-y to stand at ₹10,37,530 crore as at September-end 2026. Within this, domestic deposits were up 23.28 per cent y-o-y and stood at ₹9,00,129 crore as at September-end 2026.

Low-cost current account, savings account (CASA) deposits declined to 34.16 per cent of domestic deposits as of September 30, 2026 from 39.39 per cent as of September 30, 2025.

Global advances increased by 20.58 per cent y-o-y to stand at ₹8,55,071 crore as at September-end 2026. Within this, domestic advances were up 17.83 per cent y-o-y and stood at ₹7,03,911 crore as at September-end 2026.

Within domestic advances, RAM (retail, agriculture and MSME) advances and “corporate & others” advances were up 18.68 per cent y-o-y and 16.67 per cent y-o-y, respectively.

Retail loans grew 19.27 per cent y-o-y; agriculture advances were up 16.34 per cent; MSME advances rose 20.27 per cent and corporate and other wholesale advances increasing 16 per cent.

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