Bank of India shares rise after Q1 loan growth led by retail; deposits near ₹10 lakh crore

Shares of state-run lender Bank of India Ltd. surged on Thursday, July 2, in reaction to its provisional business update for the June quarter, where all metrics were higher between 10% to 20% on a year-on-year basis.

Bank of India's global deposits grew by 15% from the same quarter last year to ₹9.58 lakh crore. The deposits figure during the same quarter last year stood at ₹8.33 lakh crore.

Total business globally increased to ₹17.55 lakh crore, which is a growth of 16.6% on a year-on-year basis.

Advances for the state-run lender increased to ₹7.97 lakh crore globally, a growth of 18.6% from the year-ago quarter. Most of the loan growth came from the domestic business, where gross advances grew 19.1% year-on-year to ₹6.73 lakh crore.

Domestic deposits also saw growth of 16.2% year-on-year to ₹8.25 lakh crore, as per Bank of India's exchange filing.

The advances and deposit growth figures are both higher than the guidance given by the management for the full financial year.

For financial year 2027, Bank of India has guided for global advances to grow between 15% and 16%, while global deposits will grow between 13% to 14%.

The management also said that the bank will aim to protect margins by growing the RAM, mid-corporate and MCLR linked loans.

Bank of India also expects its Return on Assets (RoA) to be touch 1% in financial year 2027.

Within the lender's various business segment, the Retail, Agri and MSME segment (RAM) saw domestic gross advances grow by 19.7% from last year to ₹3.92 lakh crore at the end of the June quarter.

Shares of Bank of India are now trading 2% higher on Thursday after the business update announcement at ₹144.53. The stock is still down 1.7% so far for the year, and needs to cross levels of ₹147 to turn positive on a year-to-date basis.