Bank of India

Rating Action

• IVR AAA/Stable reaffirmed on Basel II and Basel III Tier II Bonds of Bank of India.
• Amount Rs 1,800 crore each.
• Regulator: SEBI.

Instruments / Facilities Rated

• Basel II Compliant Tier II Bonds: IVR AAA/Stable, Rs 1,800 crore.
• Basel III Compliant Tier II Bonds: IVR AAA/Stable, Rs 1,800 crore.

Outlook

• Outlook: Stable.

Rationale & Key Metrics

• Sovereign/government support from GOI remains a key strength due to majority ownership.
• Diversified loan book and comfortable capitalisation underpin stability.
• Asset quality improving but still moderate; fresh slippages monitored.
• Deposits growth modest vs advances; CASA declined to 36.68% by Jun 2026.
• CRAR 18.69% as of 30 Jun 2026; CET-1 15.97%.
• Transition to ECL-based provisioning remains a key monitorable.
• Q1 FY27: Operating profit Rs 5,051 crore; net profit Rs 3,068 crore; ROA 1.01%.

Instruments/Facilities Rated

• Basel-III compliant Tier II bonds rated AAA with Stable outlook by Infomerics.

Rating Agency

• Agency: Infomerics; Action: Reaffirmed; Date: 14-08-2026; Verification: Verified.

Outlook

• Outlook: Stable.

MTN Programme Approval

• Approved MTN programme up to USD 1.0 billion in 3/5-year USD bonds through 31 Dec 2026.

Appointment: Part-Time Non Official Director

• Shri Raj Kumar Sharma appointed as Part-time Non Official Director on the Bank's Board.
• Term: three years or until further orders, whichever earlier.
• Nominated by the Central Government under Regulation 30 Schedule II of SEBI LODR.
• Effective date: 13 August 2026.
• Profile: law graduate, B.Com (Management), Fellow Member of ICSI; practising Company Secretary since 1997.
• Experience: extensive practice in Company Law; 59 years old.
• Impact: new director on board; no specific committee appointment mentioned.

Meeting Details

• Board meeting scheduled for 14 August 2026; time and venue not disclosed.

Key Agenda Items

• Consider and approve MTN programme raising up to USD 1.0 billion in 3/5-year bonds.
• Issuance of bonds through BOI GIFT City Branch.
• Period covered: upto 31 December 2026.

Relief of CGM

• Shri Prashant Thapliyal, Chief General Manager, relieved on 31.07.2026 due to superannuation.

Financial Performance

• Global business grew 16.57% YoY to Rs 17.55 lakh crore in Jun'26.
• Global deposits rose 14.90% YoY to Rs 9.58 lakh crore.
• Domestic deposits rose 16.15% YoY to Rs 8.25 lakh crore.
• CASA Rs 3.02 lakh crore; CASA ratio 36.68%.
• Global gross advances up 18.64% YoY to Rs 7.98 lakh crore.
• Domestic gross advances up 19.20% YoY to Rs 6.74 lakh crore.
• RAM advances up 19.75% YoY to Rs 3.93 lakh crore (58.30% of advances).
• Operating profit rose 25.99% YoY to Rs 5,051 crore.
• Net profit rose 36.23% YoY to Rs 3,068 crore.
• NII up 12.61% YoY to Rs 6,833 crore.
• Non-interest income up 19.07% YoY to Rs 2,579 crore.
• NIM 2.52% vs 2.55%; Slippage 0.24% vs 0.33%.
• Credit cost 0.15% in Jun'26.
• Gross NPA 1.81%; Net NPA 0.51%; PCR 93.83%; CRAR 18.69%.
• FY27 guidance unchanged: advances 15-16%, deposits 13-14%.

Business Update

• Centralized Sales Vertical established to drive customer acquisition and revenue.
• SVB Mumbai established for high-value buyouts, co-lending, and TReDS.
• RuPay Virtual Debit Card via BOI Omni Neo app.
• BOI Star Choice Current Account allows customers to choose last seven digits.
• Centralized Video Customer Identification Centre enables digital onboarding.
• BOI Kenya Mobile Banking App live with M-PESA integration.
• BOI Services to deploy field staff for enhanced Cash Management Services.

Q&A Highlights

• SMA 5 crore+ now ~0.52% of standard book; fresh slippages ~ Rs 1,800 crore.
• ECLGS sanctioned ~Rs 6,000 crore; Rs 4,600 crore disbursed.
• Expect total ECLGS sanctions/disbursals near Rs 8,000 crore by scheme end.
• FCNR(B) target $1.2 billion by Sep 30; current >$200 million; leverage up to 9x.
• Gold loan book Rs 57,000 crore; yield ~9.1%; NPAs under Rs 100 crore.
• Gift City corporate pipeline around Rs 70,000 crore; international book over Rs 2.56 lakh crore.

Guidance & Outlook

• ROA target ≥1% QoQ in FY27.
• NIM guidance 2.55%–2.60% for FY27.
• C/I ratio target 48%–49% for FY27.
• FY27 guidance unchanged: global advances 15-16%; global deposits 13-14%.
• Plan to raise ~$4.2B by Dec 31, 2026 via FCNR, OFCB/MTN, ECB.

Financial performance (Q1 FY2026-27)

• Standalone total income: 22,52,847 lakh; YoY +9.9%, QoQ -0.7%.
• Consolidated total income: 22,71,228 lakh; YoY ~+10%, QoQ -0.6%.
• Standalone PAT: 3,06,790 lakh; YoY +36.5%.
• Consolidated PAT: 3,30,258 lakh; YoY +80%, QoQ +7%.
• Standalone PBT: 4,08,748 lakh; Consolidated PBT: 4,33,099 lakh.
• EPS (Basic/Diluted): ₹6.74 for the quarter.
• Provisions (excluding tax): 96,360 lakh; NPA provisions: 1,14,411.
• Basel III: CRAR 18.69%; CET1 15.97%; AT1 0.30%.
• ROA (annualised): 1.01%.
• NPAs: GNPA 1.81%; NNPA 0.51%.
• Deposits: Standalone 9,57,92,385 lakh; Consolidated 9,61,28,640 lakh.
• Advances: Standalone 7,87,34,009 lakh; Consolidated 7,91,72,933 lakh.
• Total assets: Standalone 11,93,20,004 lakh; Consolidated 12,09,32,371 lakh.
• IFR transferred to General Reserve: ₹1,394.59 crore.
• MSME restructuring: 6,252 accounts; ₹239.97 crore.
• Additional provisions for four large borrowers: ₹874.11 crore.
• Direct assignment loans acquired: ₹1,382.32 crore; Co-lending ₹25.74 crore.
• PSLCs: Sold ₹10,000 crore; Commission earned ₹276.94 crore.
• Auditors’ report: Unmodified on standalone and consolidated; Pillar 3 disclosures on bank site.

Asset quality & capital adequacy

• GNPA 1.81%; NNPA 0.51% (standalone).
• Provision Coverage Ratio: 93.83%.
• Total Basel III CRAR: 18.69%; CET1 15.97%; AT1 0.30%.
• Debt-Equity ratio: 0.71%; Total debt/total assets: 9.67%.
• NCLT-related provisions: 100% provision across ₹2,905.30 crore outstanding.
• Large-borrower stress provisions: ₹874.11 crore.
• ROA (annualised): 1.01%.

Balance sheet & funding

• Deposits: standalone ₹9,57,92,385 lakh; consolidated ₹9,61,28,640 lakh.
• Advances: standalone ₹7,87,34,009 lakh; consolidated ₹7,91,72,933 lakh.
• Total assets: standalone ₹11,93,20,004 lakh; consolidated ₹12,09,32,371 lakh.
• Digital Banking Units (DBUs): two DBUs commenced.
• Investments: ₹2,69,54,109 lakh (standalone).
• Reserves & surplus: ₹84,40,186 lakh.

Segment performance (standalone)

• Segment PBT: Treasury ₹1,60,702; Wholesale ₹1,53,835; Retail ₹1,31,718; Unallocated ₹-37,507.
• Total segment PBT: ₹4,08,748 lakh.

Regulatory & disclosures

• Auditors' review: Unmodified opinion for standalone and consolidated.
• Pillar 3 disclosures available on Bank's website.
• 80% of consolidated revenue/assets/profits reviewed under SEBI LODR.