Bank of India managing director and CEO Rajneesh Karnatak said the lender has a healthy loan pipeline of Rs 87,000 crore and is targeting a 15%-16% credit growth during the current fiscal.

The state-run bank is also looking to post a net profit of over Rs 6,000 crore in FY27, with half of that coming during the first six months of the fiscal. In the second quarter ended September, the lender posted a net profit of Rs 3,200 crore, up 25.4% year-on-year, while in Q1 it was at Rs 3,068 crore.

“With that kind of run rate, our net profit for FY27 should be crossing Rs 6,000 crore,” said Karnatak.

The corporate loan pipeline stands at Rs 65,000 crore and the RAM (retail, agriculture and MSME) segment at Rs 20,000 crore. 

The corporate loan pipeline is diversified across renewable energy, power, roads, oil and gas, cement and manufacturing. 

“If I give you a sense on the corporate credit side, the main numbers are from renewable energy of more than Rs 12,000 crore where we have a pipeline in which we have sanctioned but are yet to disburse. In power sector, we have a pipeline of over Rs 9,000 crore and in roads another Rs 5,000 crore. In Oil and gas, we have more than Rs 5,000 crore, in cement Rs 4,000 crore, in construction Rs 2,100 crore, in automobiles Rs 2,000 crore and in manufacturing (particularly textile) Rs 2,700 crore. So these are the major sectors where we are having these pipelines,” Karnatak told analysts.

For supply chain, pool lending and entire TReDS, the bank has created a centralised branch in Mumbai and has started building a loan book which has touched around Rs 1,000 crore.  “We have already given a target to our 69 zones that every month they have to onboard one new vendor for their supply chain. So that work has already started. Under this supply chain financing, we should be having a business of somewhere around Rs 1,500 crore in the first year itself and we will be scaling this up,” said Karnatak.

The bank’s total loan book stands at Rs 8.55 lakh crore as on 30 September 2026, up 20.58% YoY. “Despite the global headwinds, we don’t see an issue with our credit target. Our loan pipeline is nearly 10% of our total loan book,” said Karnatak.

On the deposit front, the bank has guided for a growth of 16%-17% in FY27. Global deposits grew 21.59% YoY to Rs 10.38 lakh crore as on 30 September.

The lender’s global business rose 21.13% to Rs 18.93 lakh crore at end- September, an incremental growth of Rs 3.30 lakh crore over a year. 

Loan book mix

The domestic loan book stood at Rs 7.04 lakh crore as on 30 September 2026, up 17.84% YoY. While retail loans grew 19.27% to Rs 1.74 lakh crore, agriculture credit rose 16.34% to Rs 1.21 lakh crore and MSME 20.27% YoY to Rs 1.18 lakh crore. The corporate loan book grew 16.67% to Rs 2.91 lakh crore.

The RAM (retail, agri and MSME) share in the bank’s total domestic loan mix stood at 58.63% as on September 2026, up from 58.21% YoY.

The bank’s home loans grew 17% to Rs 85,080 crore and accounted for 49% of its retail credit as on 30 September 2026. Mortgage loans rose 33% to Rs 17,591 crore (10% of retail loan mix) while vehicle loans grew 19% to Rs 26,349 crore (15%) and education loans 17% to Rs 4,754 crore. Personal loans made up 15% of the retail loan mix with Rs 13,088 crore,rising just 1% from the year-ago period. 

Domestic deposits

Domestic deposits grew 23% YoY to Rs 9 lakh crore as on 30 September 2026, with incremental growth of Rs 1.70 lakh crore over a year. 

The CASA ratio stood at 34.16%, declining from 36.68% three months back and 39.39% a year ago. Domestic retail term deposits fell to 43.44% from 42% a quarter ago and 47.41% a year earlier.

“Along with CASA and term deposits, we are 77% in the retail franchise while the bulk deposit component is only 23%. To meet credit growth, we are taking some bulk deposits because of which CASA percentage is looking lower. But nonetheless, we are working on it. A lot of strategic moves we have taken in order to improve CASA,” Karnatak told analysts.

FCNR(B) influx weighs on margins

Karnatak expects the bank’s net interest margin (NIM) to widen in the second half of the fiscal after being compressed on account of FCNR(B) deposits. “We expect NIMs to improve by 6-7 basis points,” he said.

The bank’s $2.2 billion FCNR(B) deposit inflows weighed on margins, with global NIM falling to 2.47% in the September quarter from 2.52% three months back.

The global NIM is projected to rise to around 2.55% in the wake of the Reserve Bank of India (RBI) hiking the repo rate by 25 basis points. The NIM expansion will also be supported by a repricing of the bank’s 66% EBLR-linked domestic loans. 

The advances linked to the external benchmark-based lending rate (EBLR) will absorb the RBI’s rate hike immediately. But the deposit rates will get repriced over time, as around 60% of Bank of India’s term deposits are in the 12-18-month maturity bucket.  

FCNR via leveraged route

Around 80% to 90% of the bank’s foreign currency non-resident (Bank), or FCNR(B), deposits came through the leveraged route. 

The lender, which allowed up to 9x leverage, paid 6.25% on FCNR(B) deposits of up to three years and 6.5% on deposits of up to five years. 

Operating profit and NII

The bank’s operating profit rose 33.19% YoY to Rs 5,089 crore in the September quarter, while net interest income climbed 18.52% to Rs 7,007 crore. 

Asset quality

The bank’s asset quality improved, with gross non-performing assets (NPAs) ratio declining to 1.60% as on 30 September 2026, from 1.81% three months ago and 2.54% a year earlier.

Net NPA stood at 0.42% compared with 0.51% in the previous quarter and 0.65% a year ago.

The provision coverage ratio improved to 94.45% from 93.83% in the preceding quarter and 93.39% a year ago.

 Fresh slippages during the quarter stood at Rs 1,160 crore versus Rs 1,778 crore in the previous quarter and Rs 887 crore a year earlier. 

The slippage ratio was 0.15%. Cash recoveries were Rs 1,635 crore, while write-offs stood at Rs 236 crore compared with Rs 1,014 crore in the previous quarter and Rs 1,081 crore a year earlier.

Earlier, the bank had classified the loan account of Kishore Biyani-promoted Future Enterprises Ltd (FEL) as fraud. In a regulatory filing, it said FEL owes the bank Rs 575.40 crore and it has fully provisioned for this exposure.