State-owned Bank of India reported a 15% year-on-year rise in net profit to ₹3,016 crore for the fourth quarter ended March 2026, supported by stronger interest income growth and improving asset quality.
The bank’s net interest income (NII) increased 11% to ₹6,730 crore in Q4 FY26, compared to ₹6,063 crore in the corresponding quarter last year.
Provisions for bad loans declined 10% year-on-year to ₹1,211 crore, helping improve profitability during the quarter.
However, the bank’s net interest margin (NIM) moderated slightly to 2.58%, compared to 2.61% a year ago, although it improved marginally from 2.57% in the previous quarter.
Non-interest income fell 6% year-on-year to ₹3,210 crore, mainly due to lower treasury gains. Profit from the sale and revaluation of investments dropped sharply to ₹67 crore, compared to ₹711 crore in the year ago period.
On the asset quality front, the bank reported a significant improvement. Gross non-performing assets (GNPAs) declined to ₹15,306 crore as of March 31, 2026, from ₹21,749 crore a year earlier. Net NPAs also reduced to ₹4,250 crore from ₹5,359 crore.
In percentage terms, the gross NPA ratio improved to 1.98% from 3.27% a year ago, while the net NPA ratio eased to 0.56% from 0.82%.
The bank’s provision coverage ratio strengthened to 93.57%, while its capital adequacy ratio improved to 18.01% from 17.77% a year earlier.
Business growth remained healthy during the quarter. Global advances rose 15.8% year-on-year to ₹7.71 trillion, while global deposits increased 13.6% to ₹9.27 trillion.
CASA deposits stood at ₹3 trillion, although the CASA ratio moderated to 37.64% from 40.29% in the year-ago quarter.
The bank also indicated that elevated deposit costs and global macroeconomic uncertainties could continue to pressure margins in the near term, although management expects funding costs to ease once market conditions stabilise.
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