Bank of India Q1 FY27 Results (NSE: BANKINDIA)
Signal: Earnings grew
The read
Bank of India delivered a strong quarter with operating profit growing +26.2% YoY and PAT +80.5% YoY (or ~36% adjusting for exceptional loss in base). Asset quality improved structurally: GNPA at 1.81% (lowest in recent history) vs 2.92% a year ago, PCR at 93.83%. NII growth (+12.7% YoY) was supported by advances growth, while cost-to-income improved. The standalone PBT of ₹4,08,748 lakh vs ₹2,91,330 lakh a year ago (+40.3%) reinforces the underlying strength. The bank also transferred ₹1,394.59 Cr from IFR to General Reserve, strengthening capital base. CAR improved to 19.28% (vs 17.90% a year ago).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹22,712.28 Cr | +9.8% | -0.6% |
| EBIT | ₹5,137.99 Cr | +26.2% | |
| Net profit | ₹3,302.58 Cr | +80.5% | |
| EPS | ₹7.25 | +80.3% |
P&L walk
Operating profit (pre-provision) grew strongly at +26.2% YoY, driven by net interest income growth (+12.7% YoY) and contained operating expenses (+3.1% YoY). Provisions dropped sharply (-12.7% YoY), especially NPA provisions (+2.9% YoY but lower absolute), leading to PAT of ₹3,302.58 Cr, +80.5% YoY. An exceptional loss of ₹51,880 lakh on RRB amalgamation impacted the year-ago base; excluding that, PAT growth is still robust at ~36% YoY.
Segments
Wholesale Banking turned sharply profitable in Q1FY27 (segment PBIT ₹1,58,810 lakh vs ₹32,585 lakh a year ago), driving consolidated profit growth; Treasury Operations PBIT improved to ₹1,77,254 lakh (+20.0% YoY), while Retail Banking PBIT declined -11.9% YoY to ₹1,31,718 lakh.
Key positives
- GNPA improved 111bps YoY to 1.81% — lowest in recent history; NNPA at 0.51%
- Operating profit (pre-provision) grew +26.2% YoY to ₹5,13,799 lakh, with operating margin expanding 294bps to 22.62%
- NII grew +12.7% YoY; cost containment (opex +3.1% vs revenue +9.8%) improved efficiency
- PCR at 93.83% (up 26bps from Mar'26) and CAR improved to 19.28% (Basel III)
Key concerns
- Retail Banking segment profit declined -11.9% YoY to ₹1,31,718 lakh, despite revenue growth
- Other income included recoveries from written-off accounts (₹609.44 Cr) and PSLC income (₹276.94 Cr), which may not be recurring
- Provisions for stressed assets under RBI resolution framework remain elevated at ₹874.11 Cr
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