BANKINDIA - Bank of India Share Price

Question: Do you expect higher growth than what you are guiding, or do you just want to be conservative?
Answer: We have been growing our global business at about 12%, with credit growth above 13% and deposits at around 11%. Particularly, domestic credit has surged over 15%. Our corporate pipeline stands at approximately Rs. 80,000 crore, including Rs. 65,000 crore ready for the next two quarters. Thus, I'm confident that our growth will surpass current guidance in the next financial year.

Question: What is the current status of unavailed credit?
Answer: The Rs. 65,000 crore corporate pipeline includes in-principle approvals, sanctions pending documentation, and those ready for disbursement. This entire amount won't be disbursed in just this quarter; distribution will occur over the next six months, primarily in Q4 FY26 and Q1 FY27.

Question: You mentioned shedding low-yielding advances; can you explain that?
Answer: Yes, the idea is to manage our portfolio efficiently. We identified that many low-yielding advances, like those linked to repo rates, were impacting our margins. We've diligently reallocated resources to areas yielding 25-40 basis points higher returns, evidenced by an uptick in our global NIM, which improved from 2.41% to 2.57%.

Question: How do you see RAM growth sustaining in 2026?
Answer: We remain optimistic about RAM growth for FY27. With increasing income levels and changes in MSME definitions, I'm confident that both RAM segments and aligned agriculture strategies we're pursuing will enhance our asset quality and margins.

Question: What is the expected impact of the ECL on your profitability?
Answer: The projected impact of Expected Credit Loss (ECL) is about 2% on our CRAR, translating to around Rs. 4,600-4,700 crore. However, it will be staggered over five years, impacting only about 0.40% annually. Given our robust net profits, we believe this won't adversely affect our CRAR.

Question: What recovery targets do you have for FY26?
Answer: For the first nine months, we've achieved recoveries of approximately Rs. 5,300 crore, aiming for an additional Rs. 2,000 crore this quarter. Thus, our total recovery target for FY26 will be around Rs. 7,200-7,300 crore, with an anticipated write-off recovery target of Rs. 3,000 crore against outstanding written-off accounts of about Rs. 50,000 crore.

Question: What is the status of your digital initiatives?
Answer: We've launched 29 business journeys, majorly in loans and liabilities, and are committing roughly 10% of our operational expenses to IT. Furthermore, our "Star Aditya" AI-driven project is progressing well, improving our operational efficiency and cybersecurity measures with significant customer experience focus.

Question: How does the Bank plan to expand branches?
Answer: We've opened over 145 branches this year and have plans for 200 more next fiscal year, leading to a total of 600 branches across India in three years. Our focus is evenly distributed among all geographies, ensuring a balanced growth approach.

Question: What's the target NIM for your 125-year plan?
Answer: While we cannot inaccurately predict targets due to current volatility, for FY26, we aim to maintain a NIM of around 2.50%, aiming for 2.60% in Q4. We're focusing on increasing yields while managing our advances to ensure stable margins.

Question: What competitive pressures are impacting your CASA deposits?
Answer: There's a fundamental shift across banks resulting in reduced CASA percentages as customers explore various investment avenues. Our CASA now stands around 38%, and while we grow our deposits, we'll increasingly rely on retail term deposits to counterbalance this structural challenge.