Net interest income rose just 0.1 per cent to Rs 11,800 crore despite nearly 15 per cent growth in advances, while 0.25 per cent compression in net interest margin to 2.79 per cent held this figure back.The bank’s Managing Director and Chief Executive Officer Debadatta Chand told reporters that the bank is likely to meet and possibly exceed the upper end of the 11-13 percent credit growth forecast for FY26 and aims to widen the Net Interest Margin (NIM) to 2.90 percent in the fourth quarter of this fiscal.
Non-interest income rose 6 percent to Rs 3,600 crore during the reporting quarter.
The retail segment led the overall loan growth with a jump of 17.4 percent, of which 12.8 percent was in education loans, 12 percent in personal loans, 16 percent in home loans and 17.4 percent in auto loans.
Chand said corporate segment receivables grew 8.1 per cent in the reporting quarter and the bank is likely to exit FY26 with a 10 per cent increase in segment receivables. The bank has a pipeline of Rs 75,000 crore in loans, including Rs 45,000 crore in sanctioned advances and over Rs 30,000 crore in loans at various stages of sanctions, he added.
Total provisions fell 26.2 per cent to Rs 799 crore during the quarter, including a 36 per cent decline in bad loan provisions at Rs 559 crore.
The fresh slippages stood at Rs 2,676 crore, which was marginally higher than the Rs 2,669 crore in the quarter-ago period.
Deposit growth stood at 10.3 percent this quarter, and Chand added that the bank will take into account the increase in liabilities before deciding on loan growth.
In terms of capital adequacy, the bank’s total buffer was 15.29 percent, including 12.45 percent of core capital.
The BoB scrip closed 1.04 per cent lower at Rs 299.35 apiece on the BSE on Friday.
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