Bank of India Q3 PAT rises 7.4% to ₹2,705 crore

1. At a Glance

Bank of India (BoI), a Public Sector Bank (PSB), reported Q3 FY26 (Oct–Dec 2025) standalone PAT of ₹2,705 crore, up 7.4% YoY from ₹2,518 crore [S1].
Relevant for UPSC Economy/Banking coverage: illustrates the ongoing PSB profitability turnaround and asset-quality clean-up trend tested in Prelims (numbers) and Mains GS-III (banking sector reforms).
Ties into the broader PIB-reported theme that PSBs recorded an all-time high aggregate net profit of ₹1.98 lakh crore in FY 2025-26, the fourth straight profitable year [S4].

BoI released its Q3 FY26 (quarter ended 31 December 2025) financial results, reported in The Hindu Business Line's print edition dated 22 January 2026 [S1].
Results showed rising profit, rising Net Interest Income (NII), narrowing Net Interest Margin (NIM), and improving asset quality (falling Gross NPA ratio).

Bank of India, founded in 1906, headquartered in Mumbai, is one of India's oldest PSBs, nationalised in 1969.
Since FY2022-23, PSBs collectively have shown a multi-year recovery from the post-2015 Asset Quality Review (AQR)-triggered NPA crisis.
PIB data show sector-wide Gross NPA of PSBs declining from 9.11% (March 2021) to 2.58% (March 2025) and further to 1.93% by March 2026 [S5, S4] — BoI's individual improvement mirrors this system-wide de-stressing trend.

Metric	Q3 FY26 (Oct–Dec 2025)	Q3 FY25 (Oct–Dec 2024)
Standalone PAT	₹2,705 crore	₹2,518 crore [S1]
Net Interest Income (NII)	₹6,461 crore (+6%)	₹6,070 crore [S1]
Net Interest Margin (NIM)	2.6% (per article) / 2.57% global, 2.80% domestic (per market reports)	2.8% [S1][S2]
Gross NPA ratio	2.3% (article) / 2.26% (market reports)	3.8% (article) / ~3.69% (market reports) [S1][S2]
Net NPA ratio	~0.60% (improved ~25 bps YoY)	— [S2]
9M FY26 net profit	₹7,511 crore (+14% YoY)	— [S2]
Global advances	₹7,40,314 crore (+13.63% YoY)	— [S2]

Category: Public Sector Bank; ownership under Ministry of Finance, Department of Financial Services (DFS).
Sector-wide context: PSBs' aggregate net profit for FY2025-26 stood at ₹1.98 lakh crore, with Gross NPA at 1.93% and Net NPA at 0.39% as of 31 March 2026; each PSB maintains Provisioning Coverage Ratio (PCR) above 90% [S4].

Economic: Rising PAT and NII across PSBs reflect improved credit growth (BoI's global advances up 13.63% YoY) and better margins, supporting bank capacity to fund productive investment [S2].
Administrative/Governance: Steady decline in Gross NPA ratios indicates improved credit appraisal, recovery mechanisms (SARFAESI, IBC, NCLT) and provisioning discipline across PSBs [S4][S5].
Financial Sector Stability: A narrowing NIM (2.8%→2.6%) despite profit growth signals margin compression from deposit repricing/rate cuts even as profitability holds — a nuance examinable in Mains banking-sector-health questions.
Historical: Marks continuation of the post-AQR/Insolvency and Bankruptcy Code (IBC) era recovery of PSB balance sheets, contrasted with the stressed-asset peak of FY2017-18.

Q3 FY26 (Oct–Dec 2025): BoI PAT ₹2,705 crore, +7.4% YoY [S1].
9M FY26 (Apr–Dec 2025): BoI net profit ₹7,511 crore, +14% YoY [S2].
FY2025-26 (full year, as reported by PIB): PSBs posted record aggregate net profit of ₹1.98 lakh crore, Gross NPA at 1.93%, Net NPA at 0.39% as of 31 March 2026 [S4].

Bank of India Q3 FY26 (Oct–Dec 2025) standalone PAT: ₹2,705 crore, up 7.4% YoY [S1].
Prior-year (Q3 FY25) comparable PAT: ₹2,518 crore [S1].
Net Interest Income (NII) in Q3 FY26: ₹6,461 crore, up 6% YoY from ₹6,070 crore [S1].
Net Interest Margin (NIM) narrowed from 2.8% to 2.6% YoY [S1].
Gross NPA ratio improved from 3.8% to 2.3% YoY (per article; market sources cite 2.26%) [S1][S2].
BoI's 9-month (Apr–Dec 2025) net profit: ₹7,511 crore, up 14% YoY [S2].
Bank of India is a Public Sector Bank, headquartered in Mumbai, founded in 1906.
PSBs' FY2025-26 aggregate net profit hit an all-time high of ₹1.98 lakh crore — fourth consecutive profitable year [S4].
PSB Gross NPA ratio as of 31 March 2026: 1.93%; Net NPA: 0.39% [S4].
PSB Gross NPA fell from 9.11% (March 2021) to 2.58% (March 2025) [S5].
Each PSB maintains a Provisioning Coverage Ratio (PCR) above 90% [S4].

GS-III (Economy): Indian Economy — banking sector, mobilization of resources, growth; NPA management, financial inclusion.
Related GS-II angle: governance of public sector financial institutions, accountability of PSBs to DFS/Ministry of Finance.
Possible question stems: 1. "Discuss the factors behind the sustained improvement in asset quality of Public Sector Banks in India over the last five years. What risks remain?" (GS-III) 2. "Examine how declining Net Interest Margins despite rising bank profitability reflect the changing interest rate and competitive environment in Indian banking." (GS-III) 3. "Public Sector Banks have posted record profits even as their market share has declined relative to private banks. Critically analyse." (GS-III)

Insolvency and Bankruptcy Code (IBC), 2016 — key driver of NPA resolution referenced in PSB recovery [S4][S5].
PSB Reforms / EASE Agenda — governance reforms behind sustained profitability.
Basel III norms & capital adequacy (CRAR) — related to bank balance-sheet health.
RBI's Prompt Corrective Action (PCA) Framework — earlier mechanism used for weak PSBs.
Bank recapitalisation & PSB mergers (2019-20) — structural background to current PSB strength.
Non-Performing Assets (NPA) classification norms (RBI) — technical basis for Gross/Net NPA figures.
Financial inclusion schemes (PMJDY, PM Vishwakarma) — PSBs' developmental role beyond profitability.

Confusing standalone vs consolidated PAT figures — this note refers to standalone PAT [S1].
Mixing up NIM (2.6%) with Gross NPA (2.3%) — both fell/moved differently; don't conflate margin and asset-quality metrics.
Assuming BoI figures represent the entire PSB sector — sector-wide figures (₹1.98 lakh crore profit, 1.93% Gross NPA) are aggregate PIB data for FY2025-26, distinct from BoI's individual quarterly numbers [S4].
Nationalisation year confusion: Bank of India was nationalised in 1969 (first phase), not 1980 (second phase).
Numeric variance across sources: article states Gross NPA improved to 2.3%; some market-report sources cite 2.26% — treat as approximately consistent, not a contradiction.

[S1] Bank of India Q3 PAT rises 7.4% to ₹2,705 crore — The Hindu BusinessLine (print, 22 Jan 2026) — https://www.thehindu.com/todays-paper/2026-01-22/th_international/articleGVLFFJ395-13196542.ece — (tier: 4)
[S2] Bank of India Q3FY26 Earnings Results: Net Profit Rises 7% to ₹2,705 Crore; GNPA Improves to 2.26% — Angel One — https://www.angelone.in/news/stocks/bank-of-india-q3fy26-earnings-results-net-profit-rises-7-percent-to-rs-2705-crore-gnpa-improves — (tier: 4)
[S3] Bank of India Q3 FY26 Results: Net profit rises 7% YoY to Rs 2,705 crore; NII up 6.43% — Zee Business — https://www.zeebiz.com/companies/news-bank-of-india-q3-fy26-results-net-profit-rises-7-yoy-to-rs-2705-crore-nii-up-643-details-388350 — (tier: 4)
[S4] Public Sector Banks (PSBs) record an all-time high net profit of ₹1.98 lakh crore in FY 2025–26 — Press Information Bureau — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2260203&reg=3&lang=1 — (tier: 1)
[S5] Gross NPAs reduce from 9.11% to 2.58% from March 2021 to March 2025 — Press Information Bureau — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146819&reg=3&lang=2 — (tier: 1)