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Bank of India

| Quarterly Financial Results Q3 FY 2025–26

BULLISH SENTIMENT

Report Source

⬤21st Jan 26

Summary : Bank of India reported strong Q3FY26 financial results with increased net profit, improved asset quality, robust capital adequacy, and effective risk management, despite ongoing stressed asset resolutions and fraud cases.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Consolidated Interest expended: ₹12,50,424 Lakh (Q3FY26).
  2. Consolidated Operating expenses: ₹4,61,940 Lakh (Q3FY26), comprising employee cost and other operating expenses.
  3. Consolidated Provisions (other than tax): ₹58,205 Lakh (Q3FY26), including ₹61,162 Lakh for NPAs.
  4. Consolidated Tax Expense: ₹92,351 Lakh (Q3FY26).
  5. Consolidated Interest earned: ₹19,05,183 Lakh (Q3FY26).
  6. Consolidated Other Income: ₹2,32,738 Lakh (Q3FY26), including commission, brokerage, fee, asset sale, investment revaluation, forex, recoveries, and dividend income.
  7. Segment-wise Consolidated Revenue (Q3FY26): Retail Banking (₹8,31,219 Lakh), Wholesale Banking (₹7,40,109 Lakh), Treasury (₹5,69,644 Lakh).
  8. Geographical Consolidated Revenue (Q3FY26): Domestic (₹18,89,882 Lakh), International (₹2,48,038 Lakh).
  9. Capital: ₹4,55,341 Lakh.
  10. Consolidated Reserves and Surplus: ₹81,84,548 Lakh (Q3FY26).
  11. Consolidated Deposits: ₹8,90,88,275 Lakh (Q3FY26).
  12. Consolidated Borrowings: ₹1,06,10,824 Lakh (Q3FY26).
  13. Consolidated Advances: ₹7,32,07,566 Lakh (Q3FY26).
  14. Consolidated Total Assets: ₹11,20,71,340 Lakh (Q3FY26).
  15. Both standalone and consolidated financial results are presented and reviewed for the quarter and nine months ended December 31, 2025.

Corporate Overview

  1. Domestic
  2. International
  3. Managing stressed assets and ensuring effective resolution.
  4. Addressing reported fraud cases and their financial impact.
  5. Adapting to new Labour Codes with yet-to-be-notified rules.
  6. Operates under strict Reserve Bank of India (RBI) guidelines.
  7. Adheres to SEBI (Listing Obligations and Disclosure Requirements) Regulations.
  8. Bank of India operates through Treasury, Wholesale Banking, and Retail Banking segments.
  9. The group structure includes domestic and overseas subsidiaries, a joint venture, and associates.
  10. Factual and compliant, focusing on financial performance and regulatory adherence.
  11. Serves retail, wholesale, and MSME (Micro, Small and Medium Enterprises) customers.
  12. Treasury Operations
  13. Wholesale Banking Operations
  14. Retail Banking Operations (including Digital Banking)
  15. Unallocated
  16. 20 domestic branches and 22 foreign branches reviewed by auditors.
  17. 5427 domestic branches were un-reviewed.
  18. 234 projects under implementation with ₹8,207 Crore outstanding.
  19. 3 new projects sanctioned during the quarter for ₹301 Crore.

Risk Factors

  1. Reported fraud cases involve substantial amounts.
  2. Stressed assets require ongoing resolution efforts.
  3. New Labour Codes' full impact uncertain.
  4. Some foreign branches not fully reviewed.

Key Drivers

  1. Net profit grew significantly year-over-year.
  2. Asset quality improved with lower NPAs.
  3. Capital adequacy ratios remained strong.
  4. High provision coverage ratio maintained.

Auditor’s Report

  1. Unmodified Opinion on the Unaudited (Reviewed) Financial Statements.
  2. Limited assurance for security cover and bond utilization certificates.
  3. Provisions for non-performing assets, standard assets, and restructured advances.
  4. Provisions for stressed sector accounts, derivative exposures, and foreign currency exposure.
  5. Investment depreciation and employee benefits provisions.
  6. Pillar 3 disclosures, leverage ratio, and liquidity coverage ratio.
  7. Exceptional item of ₹518.80 Crore related to RRB amalgamation, representing the difference in carrying amount of investment in associates and actual amount received on capital redemption.

Board Commentary

  1. Non-performing assets and stressed assets requiring provisions.
  2. Fraud cases with significant amounts involved.
  3. Regulatory changes like new Labour Codes.
  4. New Labour Codes effective November 21, 2025, subsuming 29 legislations.
  5. Compliance with RBI circulars on Basel III Capital Regulations and Liquidity Standards.
  6. Adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
  7. Subscribed an additional ₹329.45 Crore to Madhya Pradesh Gramin Bank's share capital.
  8. Projects under implementation total ₹8,207 Crore at quarter-end.

Corporate Governance

  1. Audit Committee of Board reviews and approves financial results.

Management Discussion & Analysis

Operational Focus Areas

  1. Continue resolution of stressed assets as per RBI frameworks.
  2. Ensure full compliance with new Labour Codes upon notification.
  3. Maintain robust capital adequacy and liquidity standards.

Performance Drivers

  1. Growth in interest earned from advances and investments.
  2. Improved asset quality with declining NPA ratios.
  3. Strong capital adequacy ratios under Basel III framework.
  4. Effective capital management through bond issuance and redemption.

Risk Control Measures

  1. High provision coverage ratio of 93.60%.
  2. 100% provision for NCLT accounts and outstanding fraud amounts.
  3. Implementation of resolution frameworks for stressed assets.

Critical Risks

  1. Non-performing assets and stressed asset resolution.
  2. Potential impact of reported fraud cases.
  3. Uncertainty regarding full impact of new Labour Codes.
  4. Reliance on other auditors for foreign branches and subsidiaries.