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Informist, Friday, May 8, 2026

 

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--Bank of India: Focus remains on caliberated credit growth 
--CONTEXT: Comments from Bank of India's mgmt in post-earnings press meet 
--Bank of India: Expect advances to grow 15-16% in FY27 
--Bank of India: Expect deposits to grow 13-14% in FY27 
--Bank of India: No plans to raise funds in Apr-Jun 
--Bank of India: Expect global NIMs be around 2.70-2.75% in FY27 
--Bank of India: Seeing robust credit growth in retail advances 
--Bank of India: Want to focus on retail, agri, MSME advances 
--Bank of India: Have INR 700 bln of loan pipeline 
--Bank of India: Remittances have slowed down due to West Asia war 
--Bk of India: See expected credit loss impact on capital at 2.5% of loans 
--Bk of India: See INR 100 bln-INR 120 bln loan to MSMEs per new credit line 
--Bank of India: Plan to open 200 new branches in FY27 
--Bk of India: Lot of deposit repricing yet to take place 
--Bk of India: Q4 treasury loss INR 350 mln-INR 370 mln on RBI FX norms 
--Bk of India: Expect some impact of RBI net open position norms in Apr-Jun 
--Bank of India: Expect some moderation in CASA ratio going forward 

 

MUMBAI – Despite firm credit growth anticipated for retail advances, Bank of India has no plans to raise funds during the first quarter of 2026-27 (Apr-Mar), Managing Director and Chief Executive Officer Rajneesh Karnatak said at a post-earnings press conference Friday. The bank's board has approved to raise INR 75 billion through the issuance of Basel-III compliant bonds during FY27. 

 

The bank plans to concentrate on advances to agriculture, retail, and micro small and medium entreprise segments in the current financial year. Its focus is to remain on calibrated credit growth. The state-owned bank has a loan pipeline of INR 700 billion.

 

For the current financial year, the bank expects advances and deposits to grow 15-16% and 13-14%, respectively. In FY26, the bank's advances and deposits grew nearly 14% and 16%, respectively. The net interest margin is expected to grow around 2.70-2.75% in FY27, against 2.52% in FY26, the bank's management said.

 

Talking about the Emergency Credit Line Guarantee Scheme 5.0, the managing director said the expects INR 100 billion to INR 120 billion loans to micro small medium entreprises under this scheme. The Union Cabinet Tuesday approved the new credit line scheme for Indian businesses amid uncertainties related to the West Asia war.  

 

The bank expects the credit loss impact on capital at 2.5% of loans due to the ongoing West Asia crisis. The bank's remittances have slowed down due to the West Asia war, the managing director said. 

 

Regarding the Reserve Bank of India's net open position norms, the bank had a treasury loss of INR 350 million to INR 370 million during the quarter ended March. The senior management expects some impact of these norms, which were pulled back on Apr. 10, in the current quarter as well. 

 

Going forward, the bank expects some moderation in the current account saving account ratio. It expects further deposit repricing in the coming days and sees the cost on deposits falling further. The bank plans to open 200 new branches in FY27. 

 

The bank also said it has on-boarded Accenture as a consultant for technology. Along with Accenture, the bank is also working with EY, IBM and Indian software solutions provider Perfios to enhance the bank's artifical intelligence abilities. The bank has an outlay of INR 8 billion for spending on IT this year, a management official said. 

 

On Friday, Bank of India's shares ended at INR 139.77 on the National Stock Exchange, down 0.4% over Thursday.  End

 

Reported by J. Navya Sruthi and Kabir Sharma

Edited by Avishek Dutta

 

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