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Bank delivers strong operating performance with calibrated growth and resilient asset quality, Quarterly Operating Profit rises by 15% YoY.
Highlights
- Operating Profit grew by 15% YoY to INR 8,236 crore in Q1FY26.
- Bank reported a Net Profit of INR 4,541 crore for Q1FY26 as against INR 4,458 crore in Q1FY25.
- The growth in operating profit was supported by 88% YoY growth in Non-Interest Income to INR 4,675 crore in Q1FY26.
- Growth in Non-Interest income was primarily driven by ~7x growth in Treasury Income which stands at INR 2,226 crore.
- Steady growth in operating income and contained growth in operating expenses led to a YoY reduction of 30 bps in Cost to Income ratio which stands at 48.87% for Q1FY26.
- Return on Assets (ROA) remains above 1% and stands at 1.03% for Q1FY26.
- Return on Equity (ROE) stands at 15.05% for Q1FY26.
- Global Net Interest Margin (NIM) for Q1FY26 is 2.91% with Domestic NIM at 3.06%.
- Bank continues to maintain strong Asset quality with reduction in GNPA by 60 bps YoY to 2.28% from 2.88% in Q1FY26.
- Bank’s NNPA also reduced 9 bps to 0.60% in Q1FY26 as against 0.69% in Q1FY25.
- BOB’s balance sheet remains robust with healthy Provision Coverage Ratio (PCR) of 93.18% with TWO & at 74.04% without TWO.
- Credit cost remains below 0.75% at 0.55% for Q1FY26.
- BOB’s Global Advances registered a growth of 12.6% YoY and Domestic advances grew by 12.4% in Q1FY26 led by robust retail loan book growth.
- Bank’s organic Retail Advances grew by 17.5%, driven by strong growth across segments such as Mortgage Loan (18.6%), Auto Loan (17.9%), Home Loan (16.5%), Education Loan (15.4%) and Personal Loan (19.5%).
- Share of Retail, Agri Loans and MSME Loans (RAM) in advances improved by 300 bps YoY to 62.7%. RAM portfolio grew by 18% in Q1FY26.
Profitability
- Net Profit for Q1FY26 stands at INR 4,541 crore (+1.9% YoY) as against INR 4,458 crore in Q1FY25.
- Net Interest Income for Q1FY26 stands at INR 11,435 crore.
- Non-Interest Income for Q1FY26 stands at INR 4,675 crore up by 88% YoY.
- Global NIM for Q1FY26 stands at 2.91% with Domestic NIM at 3.06%.
- Operating Profit for Q1FY26 increased by 15% to INR 8,236 crore.
- Cost to Income ratio reduced by 30 bps YoY and stands at 48.87% for Q1FY26.
- Return on Assets stands at 1.03% for Q1FY26.
- Return on Equity stands at 15.05% for Q1FY26
Asset Quality
- The Gross NPA of the Bank reduced by 10.7% YoY to INR 27,572 crore in Q1FY26 and Gross NPA Ratio improved to 2.28% in Q1FY26 from 2.88% in Q1FY25.
- The Net NPA Ratio of the Bank also reduced by 9 bps to 0.60% in Q1FY26.
- The Provision Coverage Ratio of the Bank stood at 93.18% including TWO and 74.04% excluding TWO for Q1FY26.
- Slippage ratio stands at 1.16% for Q1FY26.
- Credit cost stands at 0.55% for Q1FY26.
Capital Adequacy
- CRAR of the Bank stands at 17.61% in Jun’25. Tier-I stood at 15.15% (CET-1 at 14.12%, AT1 at 1.03%) and Tier-II stood at 2.46% as of Jun’25.
- The CRAR and CET-1 of consolidated entity stands at 18.29% and 14.84% respectively
- The Liquidity Coverage Ratio (LCR) consolidated stands at 119% (approx.).
Business Performance
- Domestic Advances of the Bank increased to INR 9,91,363 crore, +12.4% YoY.
- Global Advances of the Bank increased to INR 12,07,056 crore, +12.6% YoY.
- Domestic Deposits increased by 8.1% YoY to INR 12,04,283 crore in Jun’25.
- Global Deposits increased by 9.1% YoY to INR 14,35,634 crore.
- Domestic CASA deposits registered a growth of 5.5% YoY and stands at INR 4,73,637 crore as of 30th June 2025.
- International Deposits grew by 14.8% on a YoY basis to INR 2,31,351 crore in Jun’25.
- Organic Retail Advances grew by 17.5%, led by strong growth across segments such as Mortgage Loan (18.6%), Auto Loan (17.9%), Home Loan (16.5%), Education Loan (15.4%) and Personal Loan (19.5%) on a YoY basis.
- Agriculture loan portfolio grew by 16.2% YoY to INR 1,61,764 crore.
- Organic MSME portfolio grew by 13.1% YoY to INR 1,35,660 crore.
- Corporate advances registered a growth of 4.2% YoY and stands at INR 3,70,266 crore.
Financial results for Quarter ended 30th June 2025
Particulars (INR crore) |
Q1FY25 |
Q4FY25 |
Q1FY26 |
YoY(%) |
Interest Income |
29,629 |
31,117 |
31,091 |
4.9 |
Interest Expenses |
18,029 |
19,622 |
19,657 |
9.0 |
Net Interest Income (NII) |
11,600 |
11,494 |
11,435 |
-1.4 |
Non-Interest Income |
2,487 |
4,735 |
4,675 |
88.0 |
Operating Income |
14,087 |
16,229 |
16,109 |
14.4 |
Operating Expenses |
6,926 |
8,097 |
7,873 |
13.7 |
Operating Profit |
7,161 |
8,132 |
8,236 |
15.0 |
Total Provisions (other than tax) and contingencies |
1,011 |
1,552 |
1,967 |
94.6 |
of which, Provision for NPA Bad Debts Written-off |
1,269 |
1,297 |
1,686 |
32.9 |
Profit before Tax |
6,150 |
6,581 |
6,270 |
1.9 |
Provision for Tax |
1,692 |
1,533 |
1,728 |
2.1 |
Net Profit |
4,458 |
5,048 |
4,541 |
1.9 |
*Includes Interest on Income Tax Refund of INR 370 crore in Q1FY26, INR 475 Crore in Q4FY25 and NIL in Q1FY25.
Business position
Particulars (INR crore) |
Jun 30 2024 |
Mar 31 2025 |
Jun 30 2025 |
YoY (%) |
Domestic deposits |
11,14,039 |
12,42,169 |
12,04,283 |
8.1 |
Domestic CASA |
4,49,019 |
4,96,462 |
4,73,637 |
5.5 |
Global deposits |
13,15,573 |
14,72,034 |
14,35,634 |
9.1 |
Domestic advances |
8,81,785 |
10,21,112 |
9,91,363 |
12.4 |
Of which, retail loan portfolio (Organic) |
2,22,494 |
2,56,633 |
2,61,479 |
17.5 |
Global advances |
10,71,681 |
12,30,461 |
12,07,056 |
12.6 |
Key Ratios
Particulars |
Q1FY25 |
Q4FY25 |
Q1FY26 |
NIM Global %* |
3.18 |
2.98 |
2.91 |
Return on Assets (%) |
1.13 |
1.16 |
1.03 |
CRAR (%) |
16.82 |
17.19 |
17.61 |
CET-1 (%) |
13.08 |
13.78 |
14.12 |
Gross NPA (%) |
2.88 |
2.26 |
2.28 |
Net NPA (%) |
0.69 |
0.58 |
0.60 |
PCR (with TWO) (%) |
93.32 |
93.29 |
93.18 |
*Including impact of reclassification of Interest on Income Tax Refund