Bank of India (BANKINDIA) Q2 FY27 Results Analysis: PPOP Jumps 33%, Advances Grow 20%

Bank of India's Q2 FY27 numbers came in strong, with revenue of Rs. 23,998.73 Cr (+16.35% YoY) and PAT growth of +25.36% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Bank of India delivered above its own FY27 guidance on growth (advances +20.43% vs 15-16% band, deposits +21.60% vs 13-14%), ROA (1.01%) and cost-to-income (47.95%), with PPOP up 33.19% YoY on operating leverage. Asset quality improved to GNPA 1.60% and PCR 94.45%, confirming management's asset-quality claims. Watch items are the QoQ cost-to-income uptick, the 80.72% YoY rise in provisions, and the pending Rs.7,500 Cr capital raise.

Key Investment Insights

Key Positives

• Total income grew 16.35% YoY to Rs.23,998.73 Cr; NII grew 18.49% YoY to Rs.7,007.21 Cr
• PPOP grew 33.19% YoY to Rs.5,089.04 Cr; PAT grew 25.36% YoY to Rs.3,202.38 Cr
• Global advances +20.43% YoY and deposits +21.60% YoY, both above the guided 15-16% and 13-14% bands
• GNPA fell to 1.60% (-94 bps YoY), NNPA to 0.42%, PCR rose to 94.45%
• Cost-to-income at 47.95%, down 507 bps YoY and inside the guided ~48-49% band
• ROA at 1.01% annualized, meeting the guided 1% target
• Treasury segment result +46.58% YoY with Rs.631.81 Cr HY revaluation profit vs a Rs.131.79 Cr loss a year ago
• HY operating cash flow of Rs.18,721.19 Cr vs -Rs.10,427.04 Cr a year ago

Risk Factors

• Provisions (other than tax) rose 80.72% YoY to Rs.797.43 Cr, though down 17.24% QoQ
• Cost-to-income rose 162 bps QoQ to 47.95% from Q1's series-low 46.33%
• Effective tax rate rose ~97 bps YoY to 25.38%, a drag on reported PAT growth
• AT1 ratio fell to 0.29% from 0.60% a year ago after the Rs.1,800 Cr Tier II redemption; CRAR down 91 bps QoQ
• Wholesale banking segment margin compressed QoQ from 19.42% to 14.50%
• 76 fraud cases involving Rs.976.20 Cr reported in the HY