Bank of India trades strong

Bank of India shares traded strong today, rising about 5 to 7% in intraday deals and touching the highest levels seen since January 2018, as investors reacted positively to the lender’s December-quarter earnings. The stock was last seen around Rs. 165 to 166 after scaling near Rs. 168 in early trade, reflecting a sharp post-results rerating in the session.

For Q3 FY26, the PSU lender reported a standalone net profit of Rs. 2,705 crore, up about 7% (YoY), while net interest income rose 6% to about Rs. 6,461 crore. Net interest margin improved sequentially to 2.57% (up 16 bps QoQ), supported by steady balance-sheet expansion, while non-interest income rose 30% to Rs. 2,279 crore, aided by treasury gains and higher other income; operating profit increased 13% to Rs. 4,193 crore.

Asset quality continued to strengthen, with gross NPA and net NPA ratios improving to 2.26% and 0.60%, respectively, alongside a provision coverage ratio of 93.60% and a lower slippage ratio of 0.16% for the quarter. Profitability ratios were steady-to-better, with RoA at 0.96% and RoE at 15.34%, while business growth remained healthy with deposits up 11.6% (YoY) and advances up 13.6% as of December 31, 2025; the CASA ratio stood at 37.97%.

The near-term focus for investors is likely to remain on margin resilience and the sustainability of the improved credit-cost profile, especially as operating expenses and provisions moved higher during the quarter. Management, however, indicated it expects NIM to hold around the 2.60% zone despite the prevailing pressure on funding costs, keeping attention on execution through the seasonally stronger March quarter.