Strong recoveries from written-off accounts and non-interest income growth helped offset margin pressures and a dip in fee earnings. The bank directed its transaction windfalls into prudential and contingency provisions ahead of new expected credit loss guidelines. Meanwhile, aggregate deposits grew 17% alongside an 18% expansion in total advances. Looking ahead, the bank raised its annual credit growth target to 13%-15% while leaning on a robust Rs 60,000 crore corporate loan pipeline.
Key points
Strong asset growth and one-off gains enabled the bank to elevate its annual credit guida…: Strong asset growth and one-off gains enabled the bank to elevate its annual credit guidance to 13%-15%.
Net interest margins contracted from 2.96% to 2.74% despite a 9% increase in net interest…: Net interest margins contracted from 2.96% to 2.74% despite a 9% increase in net interest income.
Balance sheet resilience was prioritized by deploying asset sale proceeds toward buffer p…: Balance sheet resilience was prioritized by deploying asset sale proceeds toward buffer provisions and investment volatility reserves.
Sources checked by our analysis pipeline: 1
Net profit increased to Rs 6532 crore in the quarter ended September from Rs 4809 crore a year ago mainly as non-interest income almost doubled to Rs 6881 crore in September 2026 from Rs 3515 crore a year ago. The bank earned Rs 1340 crore from the sale of its partial stake in NSE in September.
The gains from the NSE stake together with a 48% jump in recovery from written off accounts made up for a 9% drop in fee base income during the year. A 9% increase in net interest income (NII) to Rs 13,026 crore also supported profits. Net interest margin dropped to 2.74% from 2.96% a year earlier.
BoB however hiked provisions during the quarter as the bank decided to use the windfall gains from the NSE stake sale to buffer up its balance sheet. A Rs 1300 crore prudential provision to deal with the expected credit loss (ECL) provision rules which are likely to kick off in April next year. The bank also added another Rs 300 crore contingency provisions to deal with volatilities in…
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