Bank of India Q1: Solid Earnings, Asset Quality Impresses, But SEBI RAs Flag Margin Pressure

Bank of India rose nearly 3% and started FY26 on a high note, as the improving trend in both profitability and asset quality continued. 

However, its interest income and margins continued to come under pressure.

On a YoY (year-on-year) basis, the bank’s net profit increased by 32% to ₹2,252 crore and operating profit by 9% to ₹4,009 crore. Non-interest income grew by 66% to ₹2,166 crore aided by healthy treasury gains and fee income.

However, Net Interest Income (NII), the bank’s primary profit contributor, declined by 3% YoY to ₹6,068 crore, while remaining almost flat QoQ (quarter-on-quarter). 

Net Interest Margin (NIM) too contracted to 2.8%, as compared to 2.92% in the same period last year, highlighting persistent margin pressure. 

On the lending side, the bank saw encouraging growth. Total advances rose 11% YoY to ₹5.65 lakh crore, while domestic deposits climbed 9.6% to ₹7.10 lakh crore. The bank’s total global business grew 10.3% YoY, reaching ₹15.06 lakh crore.

Asset quality continued to improve. Gross NPA came down to 2.92% from 3.27% last quarter, and net NPA dropped to 0.75% from 0.82%. 

The provision coverage ratio (PCR) remained strong at around 92%, and the bank’s capital adequacy ratio stood at a healthy 17.77%. 

SEBI-registered investment advisor Financial Independence noted that organic growth in both the retail and corporate segments supported overall business expansion, with gross and net NPAs estimated at 4.6% and 0.99% respectively.

The advisor described the overall result as “positive to neutral,” pointing to steady growth in profit and advances alongside modest asset quality improvement. 

While income growth was seen as moderate, the firm noted confidence in the bank’s execution and maintained a stable outlook.

SEBI-registered analyst SharesNServices emphasized the strong YoY profit growth driven by treasury gains and fee income, but flagged margin compression as a concern. 

The analyst noted that despite pressure on NII, stable asset quality and strong capital buffers support a constructive medium-term outlook.

From a technical perspective, SharesNServices identified support at ₹109–₹111 and resistance at ₹116–₹118. 

A sustained close above ₹122 may indicate further upside momentum. Momentum remains flat, and traders are advised to watch volume activity near support for confirmation.

On Stocktwits, retail sentiment was ‘bullish’ amid ‘normal’ message volume.

Bank of India’s stock has risen 12.4% so far in 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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