Bank of India Grew ₹82,000 Crore in 3 Months. Here Is the Curious Story of Where It Went

Here is what Bank of India’s Q2 FY27 results really show. A plain-language walk through the Q2 FY27 results (quarter ended 30 September 2026)

Here is a number that made us stop and re-read the filing: ₹82,472 crore. That is how much Bank of India’s total assets grew between 30 June 2026 and 30 September 2026. Ninety-two days.

When we looked at where that growth showed up, we found something we did not expect. About three-quarters of it, ₹60,982 crore, sat in the bank’s reported international segment, not in its domestic business.

That one finding led to a few more questions. Deposits grew faster than loans. Savings and current account money (CASA) barely moved, while term deposits sprinted. The net interest margin edged down from 2.52% to 2.47%, yet profit grew 25%. And a footnote about a special RBI deposit scheme turned out to explain a good part of the story.

This article takes the numbers one question at a time, the way a curious friend would. Almost every figure comes from the bank’s own filing, and where we use something management said on the earnings call, we say so. We are not judging anyone. We simply think these are interesting facts that most news stories skipped, and we wonder what they will look like next quarter.

First, a simple way to picture a bank’s balance sheet

Imagine a trader in a Gujarat mandi. Farmers and shopkeepers keep money with him (these are deposits). He puts that money to work. He lends to shop owners in his own town (domestic loans). He lends to a trader in another country (international loans). He keeps some cash in the drawer, and he buys safe government papers (investments).

A bank’s balance sheet is that same two-sided list. One side says where the money came from. The other side says where it went. The two sides must always match.

So when assets grow by ₹82,472 crore in one quarter, two questions follow naturally. Where did the money come from? And where did it go? The rest of this article is the answer to both.

Bank of India Q2 FY27 at a glance

Before the puzzles, here are the headline numbers. Amounts are in ₹ crore. “bps” means basis points, and 100 bps equals 1 percentage point.

Metric	Q2 FY27	Change
Net profit (standalone)	₹3,202 cr	+25.34% vs Q2 FY26
Operating profit	₹5,089 cr	+33.19% vs Q2 FY26
Net interest income (NII)	₹7,007 cr	+18.52% vs Q2 FY26
Net interest margin (global)	2.47%	+6 bps vs Q2 FY26 (Q1 FY27: 2.52%)
Global deposits	₹10,37,530 cr	+21.59% vs Sep 2025
Global advances (loans)	₹8,55,071 cr	+20.58% vs Sep 2025
Global business growth, QoQ	+7.80%	5.44% excluding the special FCNR scheme
Global business growth, YoY	+21.13%	18.48% excluding the special FCNR scheme
Gross NPA / Net NPA	1.60% / 0.42%	From 2.54% / 0.65% a year ago
Return on assets / Return on equity	1.01% / 16.36%	From 0.91% / 14.94%
Capital adequacy (CRAR) / CET-1	17.78% / 15.49%	CRAR +109 bps vs Sep 2025

Source: Bank of India press release and results filed with NSE on 23 October 2026. Figures are standalone unless stated. Consolidated net profit was ₹3,309 crore (+28.4%) and consolidated total assets were ₹12,91,608 crore.

Puzzle 1: Where did the ₹82,472 crore go?

The bank reports its assets by geography. Here is how the quarter looked.

Total assets (₹ crore)	30 Jun 2026	30 Sep 2026	Change
Domestic	10,35,315	10,56,805	+21,490 (+2.1%)
International	1,57,885	2,18,867	+60,982 (+38.6%)
Total	11,93,200	12,75,672	+82,472 (+6.9%)

Source: Segment information in the standalone results. Rounded to the nearest crore.

Look at the share. International assets were about 13.2% of the balance sheet in June. By September they were about 17.2%. A year ago, in September 2025, the share was about 13.5%.

A footnote that explains a lot: the special FCNR scheme

Before we go further, there is a footnote on page 59 of the filing that changes how the numbers read. Under its business table the bank says that global deposits and advances at 30 September 2026 include FCNR deposits and FCNR advances canvassed under an RBI special FCNR scheme during Q2. Excluding them, global business grew 5.44% on the quarter and 18.48% on the year, against the reported 7.80% and 21.13%.

The gap works out to roughly ₹41,400 crore (our arithmetic: 2.65% of the September 2025 base of ₹15,62,446 crore, and the quarterly gap gives a similar figure). That is about 30% of the quarter’s ₹1,36,902 crore rise in global business. Global business adds deposits and advances together, so a matched FCNR deposit and FCNR loan are counted on both sides.

On the earnings call, management said the bank raised $2.2 billion of FCNR deposits, matched by $2.2 billion on the asset side in the international book, where the leverage was given. The call transcript quotes the effect on margin as “around INR 40,000 crores” of business, worth about 5 bps of global NIM. The filing does not say which segment books the deposit side, and the $2.2 billion explains only part of the ₹60,982 crore rise in international assets.

What are “international assets”?

This is the bank’s reported international segment: the loans, trade finance, balances with other banks, investments and cash of its overseas branches. The auditors mention 21 foreign branches in their review report. One detail: the bank’s overseas loan slide lists GIFT City (15% of overseas advances), which is in India, so “international” here is the bank’s reporting category, not only assets outside India. Overseas assets are not only loans, which brings us to the next question.

The overseas loan book

₹ crore	Sep 2025	Jun 2026	Sep 2026
Overseas advances (loans)	1,11,795	1,23,942	1,51,160
Overseas deposits	1,23,203	1,32,961	1,37,401
Overseas loans as % of overseas deposits	90.7%	93.2%	110.0%

Source: Investor presentation, overseas business slide. The percentage row is our arithmetic.

Overseas loans grew by ₹27,218 crore in a single quarter, a 22% jump. That is nearly half (47.5%) of the bank’s total loan growth for the quarter (₹57,296 crore). Over twelve months the overseas loan book is up 35.2%.

Here is the curious part. Of the ₹60,982 crore growth in international assets, only ₹27,218 crore was loans. The remaining difference of roughly ₹33,800 crore (our approximate arithmetic) is not broken down in the filing, so we cannot say what it consists of.

What does the overseas loan book look like? The bank says about 47% is India-linked (loans connected to Indian businesses), 29% is local lending in the foreign country and 24% is trade finance. By geography, the USA is the largest at 28%, followed by the UK (20%), GIFT City (15%), Japan (12%) and Singapore (11%).

A curious ratio: overseas loans versus overseas deposits

In September 2025, overseas loans were about 91% of overseas deposits. By September 2026 they were 110%. The filing does not explain the gap, but management did on the call: the leverage side of the FCNR business, meaning loans funded by the FCNR deposits, is booked entirely in the international loan book. Overseas deposits rose only ₹4,440 crore in the quarter, so the matching FCNR deposits do not appear to sit in the overseas deposit line. The filing does not say where they are booked.

What do the overseas branches earn?

₹ crore	Q2 FY26	Q1 FY27	Q2 FY27
Total income	2,188	2,499	3,070
Operating profit	419	412	525
Net profit	337	303	409
Gross NPA	244	157	168

Source: Investor presentation, overseas business slide.

Overseas loans are about 17.7% of the bank’s global loans (our arithmetic). Yet overseas branches produced about 10.3% of operating profit and about 12.8% of net profit in Q2. Overseas gross NPA is just ₹168 crore, about 0.11% of overseas loans. So these branches turn a large share of their operating profit into net profit.

There is also a margin angle. The bank’s domestic NIM is 2.75% while the global NIM is 2.47%. Global NIM is a blend of the domestic and overseas businesses, so that gap implies the overseas business earns a thinner margin than the domestic book. The filing does not break out overseas NIM, and management linked about 5 bps of the quarter’s margin dip to the FCNR business. Overseas branches also turned about 78% of their operating profit into net profit (409 of 525), and overseas NPAs are small, but the filing does not tell us why. That is a nice point to track as the overseas share grows.

Puzzle 2: Deposits sprinted, but CASA walked

Now to the other side of the balance sheet. Global deposits grew 21.59% in a year. In domestic business, deposits grew by ₹75,166 crore in just one quarter (a 9.1% jump). Here is the split.

Domestic, ₹ crore	Sep 2025	Jun 2026	Sep 2026
Total domestic deposits	7,30,098	8,24,963	9,00,129
CASA (savings + current)	2,86,492	3,02,085	3,07,031
Term deposits	4,40,799	5,21,377	5,91,709
CASA ratio	39.39%	36.68%	34.16%
Retail term deposits, % of domestic deposits	47.41%	42.00%	43.44%
Retail term deposits (our estimate)	≈3,44,800	≈3,45,900	≈3,90,400
Other, larger-ticket term deposits (our estimate)	≈96,000	≈1,75,500	≈2,01,300

Source: Investor presentation, domestic deposits slide. The two estimate rows are our arithmetic from the rounded retail term deposit percentage applied to CASA plus term deposits, so treat them as approximate.

What is CASA, and why do people watch it?

CASA stands for Current Account and Savings Account. Money in these accounts costs a bank very little. Current accounts pay no interest and savings accounts pay a low rate. Term deposits (fixed deposits) pay more, because the customer is promising to leave the money for a fixed period. A higher CASA share generally means cheaper funding. You can see how a term deposit grows with our Bank FD Calculator.

What happened this quarter?

• Over the quarter, CASA grew by ₹4,946 crore (1.6%). Term deposits grew by ₹70,332 crore (13.5%).
• Over the year, CASA grew 7.17%, term deposits grew about 34% and total domestic deposits grew 23.29%.
• The CASA ratio moved from 39.39% to 36.68% to 34.16% across the three dates in the table.
• The slide shows retail term deposits at 43.44% of domestic deposits against 47.41% a year ago. On the call, management said CASA plus retail term deposits make up 77% of deposits, which matches the table (34.16% + 43.44% = 77.6%). On that basis retail term deposits rose by about ₹44,600 crore in the quarter, while other, larger-ticket term deposits roughly doubled in a year, from about ₹96,000 crore to about ₹2,01,300 crore, which is about 22% of deposits (management said about 23%).
• FCNR deposits are foreign-currency term deposits, so the special scheme may be part of this jump. The filing does not give the split.

A small footnote on the CASA ratio. The bank’s 34.16% matches CASA divided by (CASA plus term deposits). Divided by total domestic deposits, it works out to 34.11%. For September 2025 the same two methods give 39.39% and 39.24%. The two differ because CASA plus term deposits does not add up to total domestic deposits in any of the three periods. The gap is ₹2,807 crore at September 2025, ₹1,501 crore in June 2026 and ₹1,389 crore in September 2026 (our arithmetic). The filing does not say what the remainder is or which method it uses. The difference is tiny, but it is good to know which denominator is being used.

So where did the extra deposits go?

Over the same quarter, domestic loans grew by ₹30,078 crore and domestic investments grew by ₹18,244 crore (from ₹2,55,578 crore to ₹2,73,822 crore). The rest sits in cash, balances with the RBI and other places. At the bank level, cash plus balances with banks stood at about ₹1,12,058 crore, which is 8.8% of total assets. A year ago it was 8.1%.

This is also why the domestic credit-deposit ratio dropped from 81.7% in June to 78.2% in September (our arithmetic). Deposits arrived faster than loans. That is not a good or bad fact by itself. It simply tells us that there is room to lend more as demand comes in.

The cost side moved a little. The cost of deposits rose from 4.69% in Q1 to 4.85% in Q2, a 16 bps rise. Interest paid on deposits was ₹11,934 crore, up 8.0% on the previous quarter and 18.2% on the year.

Puzzle 3: A margin that slipped 5 bps while profit rose

Net interest margin (NIM) is the banker’s version of a profit margin. Back to our mandi trader. If he pays 4.85% to those who keep money with him and earns 7.59% on the loans he gives, the gap is what pays for his shop, his staff and his profit. NIM measures that gap against the money working for him. Banks do not use EBITDA because interest is their raw material, so NIM does the job. If you want to see what EBITDA margin means for other businesses, read our guide to EBITDA margin.

Global, %	Q2 FY26	Q1 FY27	Q2 FY27	H1 FY27
Yield on advances	7.81	7.46	7.59	7.49
Yield on investments	6.80	6.87	6.99	6.93
Cost of deposits	4.85	4.69	4.85	4.77
Net interest margin (global)	2.41	2.52	2.47	2.50

Source: Investor presentation, key financial ratios slide. Domestic NIM was 2.75% in Q2 FY27 against 2.66% a year ago.

The year-on-year picture is positive: 2.47% against 2.41%. The quarter-on-quarter picture is a 5 bps dip from 2.52%. Net interest income itself rose 2.5% over the quarter and 18.5% over the year.

Management has given a reason for the quarterly dip. On the call it said the FCNR business, around ₹40,000 crore of low-margin business, took about 5 bps off global NIM, which is the whole move from 2.52% to 2.47%. This comes from the call transcript, not from the filing.

About 66% of the bank’s standard domestic loans (65.89%) are linked to the external benchmark rate (EBLR) and 24.82% to MCLR. Loans linked to an external benchmark reprice quickly when policy rates change. That is one reason the yield on advances can move from one quarter to the next.

What management expects next

On the call, management said the repo-rate change should help margin by around 6 to 7 bps once it works through a full quarter. It also noted that nearly 60% of term deposits mature in 1 to 18 months, so the cost side will take time to reprice. The filing itself does not give any margin outlook, so we will watch how these two forces play out in Q3.

Puzzle 4: The income that is not interest

Banks earn mainly from interest, but fees, treasury and recoveries add a lot. Non-interest income was ₹2,770 crore in Q2, up 25% from a year ago. Here is what it is made of.

₹ crore	Q2 FY26	Q1 FY27	Q2 FY27	Change vs Q2 FY26
Commission, exchange and brokerage	511	404	487	−5%
Cross-selling (third-party commission)	77	59	95	+23%
Profit on sale and revaluation of investments	314	414	201	−36%
Profit from exchange transactions	160	226	411	+157%
Recovery in written-off accounts	337	609	978	+190%
Other non-interest income	822	867	598	−27%
Total non-interest income	2,220	2,579	2,770	+25%

Source: Investor presentation, non-interest income slide. Components may not add to the totals because of rounding (for example, the Q2 FY26 components add to 2,221 against a total of 2,220).

Third-party income: small but growing

When a bank sells insurance, mutual funds and similar products of other companies, it earns a commission. For Bank of India that line was ₹95 crore in Q2 (up 23%) and ₹154 crore in the first half (up 22%). That is only 3.4% of non-interest income. Add the regular commission line and fee-type income is about ₹582 crore, or 21% of non-interest income.

The activity behind it is growing faster than the income. The bank reports 1,08,193 third-party product sales (insurance, mutual funds and others) in Q2, up 73% on the year. Digitally generated savings and term deposit business was ₹1,938 crore against ₹1,399 crore a year ago. Third-party income could be an interesting number to track if that sales growth continues.

Recoveries from written-off accounts

When a bank writes off a loan, it keeps trying to collect. Money that comes in later is booked as income. In Q2 this line was ₹978 crore. That is about 35% of non-interest income and about 19% of operating profit (our arithmetic). In the first half it was ₹1,587.26 crore, or 3.41% of total income, as Note 22 to the results says.

This is real cash collected from borrowers. It also tends to be lumpy, because a few large accounts can move the number from one quarter to the next. On the call, management attributed the ₹978 crore to two or three lumpy accounts and said it expects to maintain the run rate through one-time settlements, NCLT and other resolution routes. That is why it is worth knowing how much of profit growth it explains, and we look at that in Puzzle 5.

A quiet earner: priority sector certificates

Banks have to lend a set share of their loans to priority sectors such as agriculture. A bank that lends more than needed can sell “priority sector lending certificates” (PSLCs) to banks that fall short. Note 20 shows that Bank of India sold ₹12,000 crore of small and marginal farmer certificates in the first half and earned ₹340.94 crore in commission. It did not buy any.

That is about 6.4% of first-half non-interest income (our arithmetic). The bank’s own priority sector slide shows agriculture at 19.32% of adjusted net bank credit against a norm of 18%, and small and marginal farmers at 13.84% against a norm of 10%. The slide marks the agriculture figure with a footnote, “Includes RIDF & PSLC”, so PSLC activity is reflected in that number. The footnote sits on the agriculture row only and does not say whether certificates sold are deducted, so we cannot tell what the percentages would be before the sale. It is a small detail that a curious reader might ask about.

One more line moved a lot: profit from exchange transactions rose from ₹160 crore to ₹411 crore. Foreign exchange income tends to move with overseas business and currency swings, so it would be natural to read it together with Puzzle 1.

Puzzle 5: Reading profit growth through different lenses

Reported operating profit grew 33% and net profit grew 25%. Both are strong numbers. Analysts often look at profit through a few different lenses to understand what is driving it. The table below uses the bank’s own figures; the adjusted rows are our arithmetic and are not reported by the bank.

Lens (₹ crore)	Q2 FY27	Q2 FY26	Growth
Operating profit, as reported	5,089	3,821	+33.2%
Operating profit without recoveries from written-off accounts	4,111	3,484	+18.0%
Profit before tax, as reported	4,291	3,380	+27.0%
Profit before tax without standard-asset and other provision write-backs	4,079	3,349	+21.8%
Profit before tax without both write-backs and recoveries	3,101	3,012	+3.0%

Source: Investor presentation slides on non-interest income and profit; adjustments are our arithmetic. These are illustrations of how sensitive reported growth is to recoveries and provision releases, not the bank’s measure of core or sustainable profit.

None of these lenses is “right” and none is wrong. They answer different questions. Recoveries are genuine income. In fact, there is a way to see them as a cushion: in Q2 the bank charged ₹1,010 crore for bad and doubtful debts, and it collected ₹978 crore from written-off accounts. Set side by side, they nearly cancel out, although they need not come from the same accounts.

The provisions line

Provisions for “standard assets and others” were a negative ₹212 crore in Q2 and negative ₹181 crore in Q1, meaning the bank released more than it set aside. Note 13 gives a related fact. Under RBI rules for very large stressed borrowers, the bank holds an extra provision on four borrower accounts. That extra provision stood at ₹1,190.56 crore in March and ₹403.89 crore in September, with a reversal of ₹786.67 crore recorded in the half-year. The filing does not link the two lines, and Note 13 covers the half-year, so it does not isolate the Q2 effect. On the call, management cited a ₹213 crore release and said about ₹400 crore is still held, which is close to the ₹403.89 crore in Note 13.

Costs and treasury

• Operating expenses grew 9% on the year to ₹4,688 crore, while income grew faster. The cost-to-income ratio improved from 53.02% to 47.95%.
• “Insurance expenses” fell from ₹299 crore to ₹172 crore (down 42%), a saving of ₹127 crore. “Miscellaneous expenses and others” rose 29% to ₹1,089 crore.
• Profit on sale and revaluation of investments was ₹201 crore, down 36% on the year. The cash-flow statement adjusts for ₹632 crore of revaluation profit in the first half, in a line that also includes depreciation on performing investments. That is similar in size to the ₹615 crore first-half profit line on the slide, but the two descriptions differ, so we cannot tie them together.
• Note 11 records that under RBI’s new investment-portfolio directions, ₹1,394.59 crore of the Investment Fluctuation Reserve was moved to general reserve. The Q1 filing shows this happened in the quarter ended 30 June 2026.

Puzzle 6: What share of the loan book is RAM, and what about big corporates?

Bankers use “RAM” as shorthand for Retail, Agriculture and MSME loans. These loans are spread across many borrowers, so they are often seen as granular. Bank of India says RAM is 58.63% of domestic gross advances (₹4,12,670 crore out of ₹7,03,911 crore). A year ago it was 58.21%.

Domestic, ₹ crore	Sep 2025	Jun 2026	Sep 2026	Growth vs Sep 2025
Retail	1,45,768	1,66,170	1,73,862	+19.27%
Agriculture	1,04,124	1,15,782	1,21,140	+16.34%
MSME	97,834	1,10,881	1,17,668	+20.27%
RAM total	3,47,726	3,92,833	4,12,670	+18.68%
Corporate and others	2,49,624	2,81,000	2,91,241	+16.67%
Gross domestic advances	5,97,350	6,73,833	7,03,911	+17.84%
RAM share	58.21%	58.30%	58.63%

Source: Investor presentation, composition of gross domestic advances.

Where are the gold loans?

Retail loans, ₹ crore	Sep 2025	Sep 2026	Growth
Home loans	72,807	85,080	+17%
Vehicle loans	22,177	26,349	+19%
Education loans	4,052	4,754	+17%
Mortgage loans	13,255	17,591	+33%
Personal loans	12,978	13,088	+1%
Others (includes staff loans, gold loans, loans against deposits)	20,499	27,000	+32%
Total retail loans	1,45,768	1,73,862	+19%

Source: Investor presentation, retail loans slide. Planning a home loan? Try our Home Loan EMI calculator.

If you were hoping for a gold loan number, the results pack does not give one. The retail “Others” bucket (₹27,000 crore, up 32%) includes gold loans, but it is not the whole gold book. On the earnings call, management said the bank’s gold loan book is around ₹61,000 crore (about 8.7% of domestic advances, our arithmetic), with the majority booked under agriculture, some in MSME and the rest in retail, and that gold loan gross NPA is 0.13%. The call gave no rupee split between segments. These call figures come from the transcript and are not in the filing.

How big is the big-corporate book?

The bank does not give one “large corporate” number. What we can see is this. “Corporate and others” is ₹2,91,241 crore, or 41.4% of domestic advances. Overseas loans of ₹1,51,160 crore are reported separately, so rather than add the two groups together we show the disclosed categories below.

Exposure	₹ crore	Share
NBFCs including HFCs (domestic)	84,046	11.9% of domestic advances
NBFCs (global)	1,06,267	79% AAA, 17% AA, 3% A, 1% BBB and below
Infrastructure (domestic)	58,274	8.3% of domestic advances
Of which power	37,305
Of which roads and ports	14,320

Source: Investor presentation. Shares of domestic advances are our arithmetic.

For standard domestic corporate loans above ₹50 crore, the bank shows ratings: 86.42% rated A and above, 3.30% BBB, 1.94% below BBB and 8.34% unrated. The below-BBB share was 1.23% in June. It is a small share, but one to watch.

Puzzle 7: Asset quality, and where the remaining NPAs live

This is the part of the results with the happiest headline. Gross NPA fell from ₹18,014 crore a year ago to ₹13,648 crore, a 24% drop.

	Sep 2025	Jun 2026	Sep 2026
Gross NPA (₹ crore)	18,014	14,454	13,648
Gross NPA %	2.54%	1.81%	1.60%
Net NPA %	0.65%	0.51%	0.42%
Provision coverage ratio	93.39%	93.83%	94.45%

Source: Investor presentation, asset quality ratio slide.

How did gross NPA come down this quarter?

Starting at ₹14,454 crore, the bank added ₹1,201 crore of new NPAs (fresh slippages of ₹1,160 crore plus ₹41 crore of debits in existing NPA accounts). It reduced the stock by ₹1,635 crore of cash recoveries, ₹135 crore of upgradations and ₹236 crore of write-offs, arriving at ₹13,648 crore. Write-offs were ₹1,081 crore in Q2 FY26 and ₹1,014 crore in Q1 FY27. So a larger part of this quarter’s decline came from cash recovery.

Two ways to read coverage

The bank’s provision coverage ratio of 94.45% includes accounts that have been technically written off (Note 21). Provisions held against the gross NPA on the balance sheet are ₹10,091 crore, which is about 73.9% of ₹13,648 crore (our arithmetic). Both are valid; they just answer slightly different questions.

Where are the NPAs?

Segment	Gross NPA, ₹ crore	Share of total	NPA as % of segment loans (our arithmetic)
Retail	1,463	11%	0.84%
Agriculture	6,099	45%	5.03%
MSME	4,979	36%	4.23%
Corporate	939	7%	0.32%
Overseas	168	1%	0.11%
Total	13,648	100%	1.60%

Source: Investor presentation, sector-wise classification of gross NPA. Agriculture NPA was ₹8,930 crore a year ago.

Two observations. First, agriculture NPA has come down about 32% in a year, from ₹8,930 crore to ₹6,099 crore, which is the biggest single reason for the overall improvement. Second, RAM loans make up 58.63% of domestic advances but about 93% of domestic gross NPA. Agriculture and MSME loans are granular and seasonal, so recoveries and slippages in these segments tend to move in cycles. Corporate NPA moved the other way this quarter, from ₹885 crore to ₹939 crore, with fresh corporate slippage of ₹147 crore against ₹54 crore in Q1.

Early warning lists and special cases

• SMA accounts of ₹5 crore and above fell from ₹6,165 crore to ₹2,553 crore (0.89% to 0.30% of standard advances). This list covers only larger exposures, so it says little about smaller retail and farm loans.
• Restructured standard loans are ₹3,550 crore, 0.41% of gross advances.
• NCLT and RBI-referred accounts total ₹30,948 crore of exposure, with 95% provided.

Puzzle 8: Capital, the cushion behind it all

	Sep 2025	Jun 2026	Sep 2026
Capital adequacy ratio (CRAR)	16.69%	18.69%	17.78%
CET-1 ratio	13.89%	15.97%	15.49%
Total risk-weighted assets (₹ crore)	4,76,865	–	5,23,230

Source: Investor presentation (Sep 2025 and Sep 2026); Jun 2026 ratios from the results statement. The Jun 2026 RWA is not given in the pack.

Capital is far above the minimum of 11.5% (including the buffer). It is up 109 bps on the year but 91 bps below June, in a quarter when the balance sheet grew quickly. Here is the interesting detail. Total risk-weighted assets rose 9.7% on the year, while loans rose 20.6%. Credit risk-weighted assets divided by gross advances were about 52.4% against 57.6% a year ago (our arithmetic). That is what you would expect if the loan mix moved toward assets with lower risk weights. The filing does not give that breakdown.

The Board has approved raising ₹7,500 crore in FY27 (₹2,500 crore of Additional Tier 1 and ₹5,000 crore of Tier 2 bonds). In Q2 the bank redeemed ₹1,800 crore of Tier 2 bonds.

Return on equity at 16.36% is also worth a look. For banks, ROE and ROA are the return measures people use. ROCE does not suit banks, because borrowed money is their raw material. We explain why in our guide to ROE vs ROCE.

Small curiosities when reading the ratios

1. Credit cost and slippage ratio look quarterly. Slippages of ₹1,160 crore divided by opening standard advances of ₹7,83,321 crore gives 0.148%, which matches the 0.15% shown. So the figure is for one quarter. Annualised, it would be about 0.6%. Banks differ on whether they annualise, so compare like with like.
2. Cost of funds. The slide shows 4.45% for Q1, 5.16% for Q2 and 5.13% for the half-year. A half-year figure is roughly an average of its two quarters, so 5.13% sitting almost on top of Q2’s 5.16% would imply that Q1 was closer to 5.1% than 4.45%. The disclosed figures may be fine and the explanation may be simple. We left cost of funds out of our NIM table, and it is a question worth asking on the earnings call.
3. Two numbers for overseas assets. The segment note gives international assets of ₹2,18,867 crore; the auditors’ report quotes ₹2,38,101 crore for the 21 foreign branches. The filing does not reconcile the two. We used the segment note throughout so that June and September are comparable.
4. Two ways to calculate CASA ratio. The bank’s 34.16% matches CASA divided by CASA plus term deposits; 34.11% is CASA divided by total domestic deposits. The gap between those two denominators is ₹1,389 crore in September 2026 and was ₹2,807 crore a year earlier; the filing does not label it.

How to read any bank’s quarterly results yourself: a 6-step checklist

1. Start with the balance sheet. How much did assets grow, and where? Domestic or international, loans or cash?
2. Check the deposit mix. Look at CASA versus term deposits and how the CASA ratio is trending.
3. Look at NIM, then ask why. Compare yield on advances with cost of deposits, and check the quarter-on-quarter change.
4. Split the income. Interest, fees, treasury and recoveries do not behave alike. Ask which parts repeat every quarter.
5. Read asset quality in more than one way. Gross NPA, net NPA, provision coverage with and without technical write-offs, and where the NPAs sit.
6. Finish with capital. Compare capital ratios across quarters, and look at risk-weighted assets against loan growth. For valuation, banks are usually looked at on price-to-book. Our P/E vs P/B guide explains how.

Five things we will look for in the next quarter

1. Does the international share of assets stay near 17%, or settle back toward 13%?
2. Does the CASA ratio stabilise, and what does the cost of deposits do?
3. How does NIM move as the repo-rate benefit comes in and the FCNR business settles?
4. How much do recoveries from written-off accounts contribute again?
5. Does the below-BBB share of larger corporate loans move up or back down?

Key takeaways

• Total assets grew ₹82,472 crore in one quarter, and ₹60,982 crore (about 74%) of that was international assets, up 38.6%.
• A footnote shows about ₹41,400 crore of the quarter’s global business growth came from an RBI special FCNR scheme. Excluding it, global business grew 5.44% on the quarter and 18.48% on the year.
• Overseas loans grew ₹27,218 crore in the quarter and are now 110% of overseas deposits. Management said the FCNR leverage business ($2.2 billion) is booked in the international loan book.
• Domestic deposits rose ₹75,166 crore in the quarter, but CASA rose only ₹4,946 crore. The CASA ratio fell to 34.16% from 39.39% a year ago.
• Global NIM is 2.47% (up 6 bps on the year, down 5 bps on the quarter). Management attributed about 5 bps to the FCNR business and expects 6 to 7 bps from the repo-rate change over a full quarter.
• Non-interest income includes ₹978 crore of recoveries from written-off accounts and ₹340.94 crore of PSLC commission in the first half. Third-party commission is ₹95 crore.
• RAM is 58.63% of domestic advances. Corporate and others is 41.4%. The pack does not break out gold loans (management said about ₹61,000 crore on the call, mostly agriculture) or give a single large-corporate number.
• Gross NPA is 1.60% and net NPA 0.42%. Agriculture and MSME hold most of the remaining NPAs. Reading the same results through different lenses gives different profit growth rates, and each lens tells part of the story.

Frequently Asked Questions (FAQs)

Disclaimer

This article is for education only and is not investment advice. Figures are taken from Bank of India’s Q2 FY27 results, press release and investor presentation filed with NSE on 23 October 2026, which were reviewed (not audited) by the bank’s statutory auditors. Numbers described as “our arithmetic” or “our estimate” are derived by us from those figures and are not reported by the bank. Figures are in ₹ crore unless stated and may be rounded. The views here are the author’s personal observations from public filings and are not the views of Bank of India or any other bank. Bank of India is discussed for illustration and is not a recommendation to buy, sell or hold any security. Please consult a SEBI-registered investment adviser before investing. See our full Disclaimer page.

Source: Bank of India, “Financial Results for the Quarter/Half Year ended 30th Sep. 2026”, press release, investor presentation and notes to the accounts, 23 October 2026. Points attributed to the earnings call are from the published call transcript (investing.com) and are not part of the filing. Figures attributed to the earnings call are as per management commentary and have not been verified against the bank’s official call recording. The Q1 FY27 results filing (NSE, July 2026) was used for the timing of the IFR transfer.

Read next: more explainers in our Banking category and on the Blog page.