Bank of India targets 12-13% growth in global loans in FY26, says MD
This story was originally published at 21:24 IST on 29 July 2025
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--Bank of India MD: Aiming for global loan growth rate of 12-13% FY26
--CONTEXT: Comments from Bank of India's mgmt in post-earnings press meet
--Bank of India MD: Aim for global deposit growth rate of 10-11% FY26
--Bank of India MD: NIMs have bottomed out
--Bank of India MD: 100% of term deposits to be re-priced by Oct
--Bank of India MD: No plans to raise capital as of now
--Bk of India:To have INR 80 bln-INR 90 bln additional liquidity post CRR cut
--Bank of India MD: Expect slippage ratio to be around 1.2% by FY26 end
--Bank of India: Increased share of loans to low-rated cos for better yields
By Kabir Sharma and Srijita Bose
MUMBAI – Bank of India aims to achieve a growth rate of 12-13% in global advances by the end of the current financial year, Managing Director and Chief Executive Officer Rajneesh Karnatak said in a post-earnings press meet Tuesday. In the case of global deposits, the bank is eying a growth rate of 10-11%.
The state-owned bank's net profit for the June quarter rose over 32% on year to INR 22.52 billion on robust other income, led by a surge in trading gains.
The bank expects the pressure on its net interest margin to have eased and sees it rising in the coming quarters. With no expectations of further rate cuts from the Reserve Bank of India's Monetary Policy Committee in the near term, the bank expects a repricing of deposits in the coming quarters to help boost its net interest margin, Karnatak said. By end of October, the bank expects all its term deposits to be repriced in line with the 100 basis points of rate cuts delivered by the RBI's rate-setting panel so far in the year, Karnatak said.
The bank's net interest margin for the June quarter was 2.55%. "There would be some pain in this quarter also in September (on NIM)," Karnatak said. "But nonetheless, we feel that this 2.55% NIM of ours for June quarter has bottomed out."
Karnatak expects the slippage ratio of the bank to be around 1.2% by the end of FY26. For the June quarter, the bank's slippages were 0.33%. Karnatak said the bank has raised the share of loans given to lower-rated companies for higher yield returns. For the June quarter, the share of the bank's domestic corporate advances to unrated companies was 8.64%, up from 5.92% a quarter ago.
Karnatak said INR 80 billion to INR 90 billion additional liquidity is expected to be freed up following the RBI's cut in cash reserve ratio which begins September. The RBI will cut the CRR to 3% of banks' total deposits in four tranches.
Karnatak said the bank has no plans to raise capital as of now. On Tuesday, shares of the bank ended 0.6% higher at INR 112.17 on the National Stock Exchange. End
Edited by Ashish Shirke
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