BoI Q1: consolidated PAT ₹3,303 Cr, ~41% adjusted YoY; margins widen, provisions ease

Bank of India's Q1 FY27 print reads spectacular on the headline consolidated line — net profit of ₹3,302.58 Cr, up ~80% year-on-year — but the optics are flattered by the base. The year-ago June-2025 quarter carried a ₹518.80 Cr exceptional loss from transferring two sponsored Regional Rural Banks, a charge booked only in the consolidated accounts. Stripping it out, adjusted YoY profit growth is ~41%, and the cleaner standalone book (which never carried the RRB charge) rose 36% to ₹3,067.90 Cr. Both signal a genuinely strong quarter — but ~40%, not 80%, is the honest underlying pace. The ~5pt gap between standalone (+36%) and adjusted consolidated (+41%) comes entirely from the prior-year one-off unwinding and higher associate/JV income, not a data error, and readers seeing the standalone number elsewhere should read it that way.

The improvement is broad-based, not one-line. Net interest income rose ~13% YoY to ~₹6,941 Cr as interest earned (+8.8%) outpaced interest expended, lifting operating profit 26% to ₹5,138 Cr. The bigger swing sat below the line: provisions other than tax fell to ₹971 Cr from ₹1,112 Cr a year earlier while provision coverage edged up to 93.83%, so more of operating profit dropped through. That pushed net profit margin to ~14.5% from 8.5% (the year-ago margin itself depressed by the RRB charge) and held operating margin at 25.6% versus 22.0% YoY. Consolidated profit also drew ~₹164 Cr from associate and JV earnings (Star Union Dai-ichi Life, Madhya Pradesh Gramin Bank and others) above the ₹3,138 Cr standalone-basis after-tax line.

The stock went into the print at ₹142.62, down 1.1% over the past month of trading.

For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 4 consecutive quarters; revenue is at a 6-quarter high.

Standalone net profit ₹3,067.90 Cr, +36.2% YoY — clean of one-offs and the truer underlying pace; +1.7% QoQ (₹3,015.79 Cr).

Operating profit ₹5,137.99 Cr, +26.2% YoY — NPM ~14.5% (vs 8.5% YoY, 13.3% QoQ); OPM 25.6% (vs 22.0% YoY) — margins expanding.

EPS ₹7.25 consolidated / ₹6.74 standalone — Government holding 73.38%; results reviewed with unmodified auditor opinion.

No reliable Street consensus specific to Bank of India surfaced for the quarter; peer PSU prints (Indian Bank +10% YoY, Central Bank +13%) were solid but not directly comparable. Against management's own FY27 guidance from the Q4 concall — global advances growth of 15-16%, deposits 13-14%, ROA of 1% and NIM of 2.70-2.75% — the year starts on track: the 2 July provisional update already flagged total business up 16.58% YoY, ahead of the advances guide, and this P&L confirms matching profitability. Capital is ample (CET-1 16.59%, CAR 19.28% consolidated, up from 17.90% YoY), leaving headroom for the guided growth. Management framed the result as 'positive' with a bullish outlook and the numbers agree — but the limited quarterly statement discloses neither NIM nor ROA, so the two headline guidance metrics can only be verified at the detailed-results/concall stage.