Bk of India aims 15-16% loan growth FY27, $1.2 bln FCNR(B) deposits by Sept
This story was originally published at 21:19 IST on 24 July 2026
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MUMBAI – State-owned Bank of India expects to grow its global loan book by 15-16% and global deposits by 13-14% in 2026-27 (Apr-Mar), while remaining watchful of geopolitical risks and the evolving financial market environment, the bank's management said at the post-earnings press conference following its June-quarter results.
Managing Director and Chief Executive Rajneesh Karnatak said that although uncertainties in West Asia and trade-related developments continue, the Indian economy remains on a firm footing, supported by contained inflation, resilient domestic economic activity and the Reserve Bank of India's supportive policy stance. However, he cautioned that geopolitical developments and financial market conditions warrant close monitoring.
On overseas operations, Karnatak said Bank of India has launched its mobile banking application in Kenya, enabling real-time banking services integration for customers in the African country. He said the lender has no immediate plans to expand its international footprint and will first assess how the West Asia situation evolves before taking any decision on opening new overseas centres. Though the bank has internally identified potential locations, it will proceed only after geopolitical conditions stabilise.
To support balance sheet growth, the lender plans to mobilise around $1.2 billion through FCNR(B) deposits by Sept. 30, of which around $200 million has already been raised, with inflows coming from the US, Canada, the UK, Europe, Singapore, Hong Kong, Japan and African markets where the bank operates. Management said the FCNR(B) campaign is gaining traction across its overseas network and domestic NRI-focused branches.
The bank also plans to raise up to $2 billion through overseas borrowings and medium-term notes by December, depending on market conditions. The fundraising will be undertaken in phases, Karnatak said.
Management said FCNR(B) deposits will primarily replace higher-cost bulk deposits while also supporting credit growth. Bulk deposits currently account for 20-21% of domestic deposits, and the bank intends to gradually reduce this dependence using FCNR(B) funds. Since FCNR(B) deposits are priced roughly 50-60 basis points lower than prevailing bulk deposit rates, the lender expects its cost of deposits to decline once the targeted mobilisation is achieved.
The bank expects a double-digit corporate loan growth this fiscal and has a corporate loan pipeline of around INR 700 billion, spanning infrastructure, conventional industries and new-age sectors such as renewable energy. It sees corporate advances growing around 12-13% in FY27, Karnatak said.
On the impact of weather conditions, Karnatak said the delayed monsoon has not affected the bank's asset quality or loan book in the first quarter. However, if rainfall deficit persists, any impact is likely to become visible only in the Jul-Sept quarter, particularly in agriculture-linked lending.
Management also said it was closely tracking sectors vulnerable to the ongoing West Asia war, including chemicals, ceramics and businesses dependent on imports and exports. While no material stress has emerged so far, borrowers facing elongated working capital cycles have been supported through the Emergency Credit Line Guarantee Scheme.
Under the scheme, Bank of India has already sanctioned around INR 60 billion, with outstanding disbursements of about INR 46 billion, and expects total sanctions under the scheme to reach around INR 80 billion before the programme concludes. The management said the scheme has provided a cushion to borrowers affected by disruptions in trade and supply chains arising from geopolitical developments.
The lender's net profit for the June quarter was INR 30.68 billion, up over 36% on year from INR 22.52 billion. Sequentially, the bottom line rose 1.7%. Friday, shares of Bank of India closed at INR 142.62 apiece on the National Stock Exchange, up marginally from Thursday. The results were announced after market hours. End
US$1 = INR 96.56
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Kabir Sharma
Edited by Akul Nishant Akhoury
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