State-owned Bank of India (BoI) has reported a 7.6% year-on-year (YoY) increase in net profit, reaching ₹2,554 crore for the July–September quarter (Q2 FY26) on October 17, 2025. In the same period last year, the bank recorded a net profit of ₹2,374 crore.
Revenue and Profit Performance
During the quarter, the bank’s total income rose to ₹20,626 crore, compared to ₹19,872 crore in the corresponding quarter of FY25. Despite a 1.2% decline in net interest income (NII) to ₹5,914 crore from ₹5,985 crore YoY, overall business momentum remained strong, supported by stable credit demand and improving operational efficiency.
The consistent growth in profitability underscores the bank’s focus on improving asset quality, optimising costs, and maintaining a healthy balance between advances and deposits.
Improvement in Asset Quality
Bank of India continued to strengthen its asset quality during the quarter. Gross non-performing assets (NPA) improved significantly to 2.54% of advances in Q2 FY26, compared to 4.41% a year earlier and 2.92% in the previous quarter. Meanwhile, net NPAs eased to 0.65%, reflecting enhanced credit discipline and effective risk management.
Provisioning for bad loans also declined sharply to ₹472 crore, down from ₹1,427 crore in Q2 FY25, showcasing the bank’s better loan performance and lower slippages.
Business Growth and Deposit Trends
BoI’s global advances grew 14.03% YoY to ₹7.09 lakh crore, while global deposits rose 10.08% during the same period. Sequentially, advances expanded 5.46% from ₹6.22 lakh crore in the previous quarter, signalling steady credit offtake.
The bank’s CASA ratio—a key measure of low-cost deposits—improved to 41.18%, up from 39.39% a year ago, indicating stronger deposit mobilisation and a healthy funding base.
Market Reaction
Despite the strong operational performance, shares of Bank of India closed at ₹123.3 apiece on the BSE, down 1.67% from the previous close, reflecting broader market sentiment rather than company fundamentals.
Outlook
With improving asset quality, disciplined credit growth, and a stable deposit base, Bank of India continues to reinforce its position among leading public sector lenders. The bank’s emphasis on risk management, digital transformation, and sustainable profitability is likely to support further growth momentum in the coming quarters.
Conclusion
The Bank of India Q2 FY26 results highlight consistent profitability, better asset quality, and efficient cost management. The lender’s ability to reduce NPAs while expanding advances and deposits reflects robust financial health. As the banking sector continues to benefit from economic recovery and rising credit demand, Bank of India remains well-positioned to sustain its growth trajectory in the coming quarters.
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