The public sector bank Bank of India reported a significant increase in net profit in the first quarter of the financial year 27. Net profit reached 3,068 crore rupees, representing a growth of 36.23% compared to the same period last year, which resulted from healthy credit growth.
Net Interest Income (NII) for the reporting period increased by 12.61% year-on-year, amounting to 6,833 crore rupees compared to 6,068 crore rupees in the first quarter of financial year 26. However, the Net Interest Margin (NIM) slightly decreased to 2.52%, down from 2.55% the previous year.
Non-interest income reached 2,579 crore rupees, showing a year-on-year growth of 19.07%. This growth was driven by an increase in write-off recoveries (up by 89.13% to 609 crore rupees) and profits from foreign exchange operations (increased by 113.21% to 226 crore rupees), despite the profit from sale and revaluation of investments decreasing by 49.51% to 414 crore rupees.
Operating costs were contained and increased by only 3.22% year-on-year, reaching 4,361 crore rupees. Personnel expenses increased by 8.64% to 2,603 crore rupees, but this was partially offset by a reduction in insurance and other expenses. The cost-to-income ratio sharply improved, falling to 46.33% from 51.31% the previous year.
Regarding asset quality, the Gross Non-Performing Assets (NPA) ratio improved to 1.81% from 2.92%, and the Net NPA ratio decreased to 0.51% from 0.75%. The provisioning coverage ratio strengthened to 93.83% from 92.94% the previous year. Furthermore, the slippage ratio improved to 0.24% from 0.33%, and credit costs decreased to 0.15% from 0.17%.
Radjnish Karnataka, Managing Director of Bank of India, noted that in the current quarter, gross cash slippage amounted to about 1,800 crore rupees, while gross cash recovery reached approximately 1,900 crore rupees, meaning that recovery exceeded slippage.
In terms of business, global loans grew by 18.64% year-on-year, reaching 797,775 crore rupees. The growth was driven by an increase in retail loans by 20.60% to 166,170 crore rupees and a surge in RAM (Retail, Agriculture, MSME) segment loans by 19.75% to 392,833 crore rupees, which now constitute 58.30% of total domestic loans. Total deposits increased by 14.90% year-on-year, reaching 957,924 crore rupees, pushing the bank's total business beyond 17.55 lakh crore rupees, demonstrating a growth of 16.57%.
Bank of India has set a target to mobilize $1.2 billion in FCNR(B) deposits, having already attracted over $200 million. NRI communities in countries such as Canada, USA, UK, Singapore, Hong Kong, Japan, and Africa are showing interest. The bank operates in 15 countries, including 4 in Africa.
These deposits, currently valued at approximately 6.5%, are more advantageous than large deposits because they do not require maintaining CRR/SLR and have an RBI-managed swap. BoI expects the mobilization of these funds to help reduce the overall cost of deposits by replacing more expensive large deposits (approximately equivalent to 12,000–13,000 crore rupees) to finance credit growth.
The bank also plans to offer customers the option to use leverage against FCNR(B) deposits up to 9 times, offering this directly without third-party involvement. According to RBI timelines, the FCNR(B) leverage component should be ready by September 30, and related overseas borrowings are permitted until December 31. Separately, in accordance with RBI directives on external financing, the bank aims to attract approximately $2 billion by December 31 through Medium Term Notes (MTNs) and associated borrowing, subject to favorable market conditions.
Karnataka added that it plans to raise about $2 billion by December 31 through external borrowing and MTNs, and this is a target dependent on the market. The bank's Capital to Risk-weighted Assets Ratio (CRAR) improved to 18.69% as of June 2026, compared to 17.39% the previous year, with CET-1 capital standing at 15.97%. The bank's Board of Directors approved plans to raise up to 7,500 crore rupees in financial year 27 through Additional Tier 1 bonds (2,500 crore rupees) and Tier II bonds (5,000 crore rupees).
CSB Bank, a private lender, reported on Wednesday a 27% increase in net profit for the June quarter, reaching 150 crore rupees. This growth was driven by an increase in core income.
Last year, the bank earned 119 crore rupees in profit. The bank's total income increased to 1,516 crore rupees compared to 1,286 crore rupees the previous year. According to CSB Bank's regulatory reporting, interest income grew to 1,287 crore rupees from 1,041 crore rupees.
The bank's net interest income also increased by 26%, amounting to 479 crore rupees compared to 379 crore rupees in the same quarter of the previous fiscal year. Furthermore, the quality of the bank's assets improved: gross non-performing assets (NPA) decreased to 1.75% of total loans as of June 30, 2026, compared to 1.84% the previous year.
Similarly, net NPAs decreased to 0.39% from 0.66% at the end of the first quarter of the previous fiscal year. As a result, reserves and unforeseen expenses decreased to 49 crore rupees compared to 61 crore rupees allocated in the same quarter the previous year. However, the bank's capital adequacy ratio decreased to 19.96% from 21.71% as of June 30, 2025.
The public sector lender Indian Overseas Bank (IOB) reported a significant increase in net profit of 49.3 percent year-on-year on Monday. Over the three months ending in June 2026, the bank earned 1,659 crore rupees, which was attributed to an improvement in asset quality.
In the same quarter last year, the bank had recorded a net profit of 1,111 crore rupees. According to the report submitted to the stock exchange system, total income for the period from April to June increased to 10,938 crore rupees compared to 8,866.47 crore rupees the previous year.
The bank's asset quality showed positive momentum. The Gross Non-Performing Assets (GNPA) ratio decreased to 1.33 percent for the June quarter of fiscal year 27, down from 1.97 percent the previous year. Similarly, Net NPA reduced to 0.18 percent from the previous 0.32 percent.
Furthermore, provisions amounted to 834 crore rupees in the quarter under review, which remained almost unchanged compared to 844 crore rupees the previous year, although this is less than the 1,006 crore rupees recorded in the March quarter. At the time of afternoon trading, IOB shares were trading 4.11 percent higher on the BSE, reaching the mark of 35.2 rupees.
Federal Bank announced a significant year-on-year increase in net profit by 37%, reaching ₹1,177 crore for the quarter covering April-June 2027 (Q1FY27). This growth was driven by a steady increase in Net Interest Income (NII), an expansion in Net Interest Margin (NIM), and a reduction in new write-offs.
However, looking at sequential data, net profit decreased by 7%. Nevertheless, excluding the one-time income received in March, the bank stated that this is its highest quarterly profit in history. Net Interest Income (NII) increased by 26% year-over-year to ₹2,946 crore, supported by healthy credit growth and margin expansion.
The bank's Net Interest Margin (NIM) grew by 39 basis points (bps) year-on-year to 3.33%, as the cost of funding fell faster than asset yields. The cost of funding decreased by 60 bps, while asset yield contracted by 44 bps. The cost of deposits dropped by 57 bps year-on-year to 5.21%. Other income declined by 6% year-on-year and by 8% compared to the previous quarter, amounting to ₹1,048 crore.
Asset quality improved during the reporting period. Gross Non-Performing Assets (GNPAs) reduced to 1.52% of gross loans as of the end of June, compared to 1.62% at the end of March. Net NPAs almost halved, reaching 0.18%, which is the lowest figure in the bank's recent history. New write-offs slowed to ₹409 crore in the quarter compared to ₹474 crore in Q4FY26 and ₹658 crore a year earlier. Provisions increased by 4% year-on-year to ₹720 crore but decreased by 29% sequentially.
In the business segment, gross loans grew by nearly 15% year-on-year to ₹2.81 trillion. The growth was supported by commercial banking (23%), gold loans (33%), real estate mortgage loans (21%), credit cards (36%), and financing for commercial transport and construction equipment (21%). The bank's corporate and institutional banking portfolio exceeded ₹1 trillion during the quarter, with total business volume reaching nearly ₹6 trillion.
Total deposits rose to ₹3.20 trillion. CASA deposits increased by 18.3% year-on-year to ₹1.03 trillion, outpacing overall deposit growth and raising the CASA ratio by 188 bps to 32.23%. The bank's franchise for Non-Resident (NR) deposits also remained strong: NRE and ONR deposits grew by 14.2% year-on-year to ₹1.05 trillion, continuing to grow after crossing the ₹1 trillion mark in the previous quarter.
Mr. Manian, Managing Director and CEO of Federal Bank, noted that the profit grew by almost 37% during a period when the treasury faced a challenging quarter, indicating that income is being generated by core business rather than market acquisitions. He emphasized that the 26% rise in NII alongside a 15% growth in loans reflects the bank's focus on margin expansion.
Manian also stated that the Net NPA ratio of 0.18% is the lowest in the bank's recent history, and the provisioning coverage ratio stands at 87%. He added that the bank is building a sustainable balance through reduced credit costs and a strong income buffer. Management noted that the selected lending segments continue to perform well, and the CASA and non-resident deposit franchises are deepening, placing the bank in a favorable position for the remainder of the fiscal year due to strong capital, improved asset quality, and a healthy business momentum.
