Bank of India Q1 FY26 Concall Decoded: Net Profit jumps 32%, NIMs bottomed at 2.55% — or so they claim
1. Opening Hook
The RBI sliced 100 bps off repo, liquidity is overflowing like Mumbai drains in monsoon, and yet public sector bankers still preach “cost of deposits will fall next quarter.” Bank of India did deliver profit growth and cleaner books — but slipped on CASA and ROA. Investors love the story until someone whispers “bulk deposits.” Grab your tea, because in this call you’ll find fraud re-confirmations, digital chest thumping, and the classic PSU line — “Q3 onwards NIMs improve.” Haven’t we heard that before?
2. At a Glance
Global Business +10.4% – Balance sheet got gym membership.
Advances +12% – Credit appetite still strong, especially RAM.
Deposits +9% – Saving habits intact, CASA dipped below 40%.
Operating Profit ₹4,009 Cr (+9%) – Not bad, but cost-to-income stretched.
Net Profit ₹2,252 Cr (+32%) – Treasury gains and low slippages gave a sugar rush.
GNPA 2.92%, NNPA 0.75% – Cleaner than last year’s PSU report card.
NIM 2.55% (global) – Management swears this is the bottom.
3. Management’s Key Commentary
“Our net NPA improved to 0.75%; credit cost at 0.68%.” (Translation: Finally, NPAs under control. Investors fainted in disbelief.)
“Guidance for ROA is 0.90% for FY26.” (Translation: Forget 1%, settle for less. PSU humility in action.)
“Bulk deposits are <14%, one of the best among PSBs.” (Translation: Yes, but still a ticking bomb for NIMs. Nice spin though 😏.)
“Digital sanctions crossed ₹1 lakh crore in 12 months.” (Translation: Sanctioning loans online is easier than opening an IRCTC account.)
“Fraud numbers reaffirmed as per SC ruling; only ₹30 Cr fresh.” (Translation: Don’t panic, no new scam — just old ghosts revisited.)
“NIM bottomed at 2.55%, expect recovery by Q3.” (Translation: Famous last words, let’s check again in December.)
“Exceptional item of ₹518 Cr due to RRB restructuring.” (Translation: Government diktat → accounting pain. PSU classic.)
