1. Opening Hook
Bank of India just dropped its Q3 FY26 numbers, and no, this wasn’t another “PSU bank barely survives” episode. This time, NPAs actually behaved, capital buffers flexed, and profits showed up on time—without RBI babysitting. Somewhere, a stressed asset consultant is nervously updating their CV.
The bank spoke confidently about RAM growth, asset quality discipline, and digital swagger—while quietly ignoring the CASA slide like it’s a bad Tinder match. Management sounded calm, almost smug, as if GNPA falling below 2.3% was always part of the plan.
But scratch beneath the headline cheer, and the real story emerges: growth is solid, credit costs are under control, overseas ops are suddenly profitable, yet margins still refuse to party hard.
Read on—because the boring PSU stereotype gets mildly roasted later, and the numbers actually matter this time.
2. At a Glance
- Net Profit up 7.5% YoY – No fireworks, but consistent PSU-style compounding.
- Operating Profit up 13.2% – Core engine humming, not coughing.
- GNPA down to 2.26% – A 143 bps clean-up job worth framing.
- NNPA at 0.60% – Practically private-bank cosplay.
- RAM advances up 18% – Retail, Agri, MSME doing the heavy lifting.
- CASA slips to 38% – Deposit competition biting harder than inflation memes.
- CRAR at 17.1% – Capital adequacy strong enough to sleep peacefully.
3. Management’s Key Commentary (Decoded)
“RAM advances grew by 18.05% YoY.”
(Translation: Corporate loans are passé; retail is the new safe space
😏)
“Gross NPA reduced to 2.26% with strong recoveries and write-offs.”
(Translation: We finally cleaned the cupboard instead of pushing junk inside.)
“Provision Coverage Ratio improved to 93.6%.”
(Translation: Even worst-case scenarios are already paid for.)
“Net Interest Margin improved sequentially to 2.57%.”
(Translation: Still not great, but at least gravity reversed.)
“Overseas operations posted ₹495 crore profit in Q3.”
(Translation: Foreign branches stopped embarrassing HQ 🌍)
“Digital loan accounts crossed 7.7 lakh in Q3.”
(Translation: Branch managers didn’t do all the work this time.)
“Credit cost remains contained at 0.34%.”
(Translation: No nasty surprises hiding under the bed.)
4. Numbers Decoded
| Metric | Q3 FY26 | Decoded Take |
|---|---|---|
| Net Interest Income | ₹6,461 Cr | Stable, not spectacular |
| NIM | 2.57% | PSU gravity still strong |
| Net Profit | ₹2,705 Cr | Slow but clean growth |
| GNPA / NNPA | 2.26% / 0.60% | Asset quality poster child |
| RAM Share | 58.5% | Retail-heavy, safer mix |
| Credit Cost | 0.34% | No stress hangover |
| CRAR | 17.09% | Capital fortress |
One-liner verdict: BOI fixed the balance sheet first, profits later—and that’s the right order.
5. Analyst Questions (Decoded)
- Q: CASA decline concern?
(A: Management blamed
