BoB’s third quarter net profit increased by 4.39%, with asset quality maintained and credit costs lowered in FY26.
On a standalone basis, net profit rose to Rs 5,055 billion compared to Rs 4,837 billion in the same period last year.
Core net interest income rose only 0.1 per cent to Rs 11,800 crore despite a nearly 15 per cent increase in advances, as the figure was suppressed by a 0.25 per cent decline in net interest margin to 2.79 per cent.
Debadatta Chand, the bank’s managing director and chief executive officer, told reporters that the bank is on track to meet and possibly exceed the upper end of its 11-13 per cent loan growth guidance for the fiscal and is targeting to expand its net interest margin (NIM) to 2.90 per cent by the fourth quarter of this fiscal.
Non-interest income rose 6% to Rs 3,600 crore during the reporting quarter.
The retail sector led overall loan growth with an increase of 17.4%, including education loans 12.8%, personal loans 12%, home loans 16% and automobile loans 17.4%.
Chand said corporate sector loans grew 8.1 per cent in the reporting quarter and the bank will end FY26 with a 10 per cent increase in sector loans. The bank has a loan pipeline of Rs 75,000 crore, which includes Rs 45,000 crore approved loans and over Rs 30,000 crore in various sanction stage loans, he added.
During the quarter, total provisions fell 26.2% to ₹799 million, including a 36% decline in provision for non-performing loans to ₹559 million.
The new decline stood at Rs 2,676 crore, slightly higher than the Rs 2,669 crore in the quarter-ago period.
Deposit growth was 10.3 per cent during the quarter, Chand said, adding that the bank would keep the increase in liabilities in mind before deciding to increase lending.
In terms of capital adequacy, the bank’s overall buffer stood at 15.29%, including 12.45% of core capital.
BoB Securities closed 1.04 per cent lower at Rs 299.35 on the BSE on Friday.
