1. GLOBAL SCENARIO
The global economic landscape for CY2025 was defined by a persistent struggle between resilience and disruption. A sweeping wave of trade protectionism - centered on the United States escalating tariff agenda collided with an otherwise stabilizing macroeconomic backdrop of easing inflation and softening interest rates.
Growth forecasts diverged sharply across institutions. The World Bank projected global GDP growth of 3.0%, while the IMFs January 2026 Report pegged global growth at 3.2% for 2025, reflecting private sector adaptability and technology driven investment, particularly in AI.
Global inflation continued its descent in 2025, enabling major central banks - including the US Federal Reserve and the European Central Bank to pivot towards monetary easing. However, the tariff induced price pressures and geopolitical flashpoints, including the Middle East tensions impacting energy markets introduced fresh uncertainty into the inflation trajectory. Policy uncertainty, trade fragmentation, and AI driven investment disruptions remained the dominant risk themes as the year closed.
2. DOMESTIC ECONOMIC SCENARIO
India emerged as a rare beacon of growth stability in an otherwise turbulent global environment. FY2025-26 saw the Indian economy power ahead with renewed vigor, building on the foundations laid in the preceding financial year and reaffirming its standing as the worlds fastest growing major economy.
Real GDP growth for FY2026 is estimated at 7.4% under the revised national accounts series (base year 2022-23), released by MoSPI in February 2026, while Nominal GDP is expected to grow at 8.6%. The IMF identified India as the only major economy expected to record growth above 6% in FY2026, even as global trade faced significant disruption.
The growth engine was powered by a confluence of domestic factors: private consumption, which now accounts for ~61.5% of GDP, grew at ~7% - supported by low inflation, stable employment, and rising real incomes following personal income tax rationalization. Gross Fixed Capital Formation grew by 7.8%, reflecting accelerated government capital expenditure, which nearly reached 60% of the budgeted allocation by November 2025. A cumulative 125 basis point reduction in the RBIs policy repo rate since February 2025 complemented fiscal support through cheaper credit.
Despite US tariff headwinds, Indias external sector held firm. Merchandise exports grew 2.4% during April-December 2025, while services exports expanded 6.5%. The current account deficit remained moderate at 0.8% of GDP in H1FY26. Gross GST collections set multiple all-time highs during the year, while direct tax collections tracked ahead of budget targets, signaling the underlying strength of the formal economy.
By sector, financial services, real estate and professional services led with 9.9% growth, trade and hospitality expanded by over 7%. Agriculture recorded a steady 3.1% growth, supported by a good monsoon and strong food grain output. The secondary and tertiary sectors together grew above 10%, demonstrating the breadth of Indias economic momentum.
On the policy front, FY2026 was marked by a decisive emphasis on fiscal consolidation and structural reform. The Union Budget 2025-26 committed to a fiscal deficit target below 4.5% of GDP, restructured personal income tax slabs to boost disposable incomes, rationalized GST rates, and channeled record capital outlays into infrastructure. Under the overarching Viksit Bharat 2047 vision, employment linked incentives, expanded ITI capacity, and support for working women were further reinforced, keeping human capital at the center of Indias development narrative.
3. BANKING AND FINANCIAL SECTOR DEVELOPMENTS
FY2025-26 was a year in which the Indian banking system demonstrated both maturity and adaptability. Capital buffers remained well above regulatory requirements, asset quality reached multi-decadal highs, and profitability held firm even as interest rate cycle shifted decisively toward easing. The system navigated the year with balance - sustaining growth without compromising prudence.
Gross Non Performing Asset (NPA) ratio of Scheduled Commercial Banks touched a historic low of 2.15% as of September 2025. Net NPAs stood at 0.5%, a reflection of the deep and proactive provisioning culture that has taken root across the system. Capital adequacy remained well cushioned, with the aggregate Capital to Risk Weighted Assets Ratio (CRAR) of PSBs improving to 16.6% as on
31.03.2026, providing a strong buffer against any emergency stress.
Profitability remained healthy at the system level through FY2025-26, even as the transmission of rate cuts introduced some pressure on the net interest margins. Return indicators moderated from their FY25 highs as repo-linked lending yields adjusted faster than deposit costs - a typical feature of an early easing cycle. Despite this compression, the overall earnings profile of the system remained comfortable, supporting continued balance sheet expansion and adequate provisioning buffers.
Credit growth witnessed a marked revival in FY2026. Non-food credit expanded 15.9% YoY, sharply higher than 10.9% in FY25, with aggregate outstanding credit reaching Rs212.9 lakh crore by March 2026. Growth was broad based: agriculture and allied credit grew 15.7%, micro and small industries surged 33.1%, and medium industries rose 21.7%. Key sectors driving industrial credit included infrastructure, basic metals, chemicals, petroleum related industries. This recovery was enabled by the RBIs accommodative monetary stance, surplus system liquidity, and government capex driving downstream credit demand.
On the deposit side, mobilization remained a challenge through much of the year, though it gathered pace towards year end. Despite this improvement, the system wide credit- deposit (CD) ratio stayed elevated - above 80%, reflecting the sustained pace of credit expansion relative to deposit accretion. This remains a structural challenge for the sector, as banks continue to navigate the trade-off between lending growth and funding stability. Net Interest Margins (NIMs) faced some compression as repo linked lending rates adjusted faster than term deposit costs, making liability management a key priority for the year ahead.
The Reserve Bank of Indias policy interventions during FY2026 were among the most consequential in recent years, and their impact on the banking system was both swift and wide ranging. The MPC delivered a cumulative 125 basis points reduction in the policy repo rate across 2025 - from 6.5% at the start of the cycle in February 2025 to 5.25% by December 2025, in a calibrated response to softening inflation and global uncertainty. The rate was subsequently held unchanged at 5.25% through early 2026, as the RBI assessed the evolving growth-inflation balance. Complementing the rate action, the RBI cut the Cash Reserve Ratio by a cumulative 100 basis points to 3%, injecting Rs2.5 lakh crore of durable liquidity into the system. Open Market Operations worth Rs6.95 lakh crore and forex swaps of ~$25 billion further ensured that liquidity conditions remained supportive. With CPI inflation projected at 2.1% for FY26, well within the target band, the RBI demonstrated that an accommodative policy stance and price stability are not mutually exclusive. This gave the central bank room to support growth without compromising its inflation-targeting mandate.
On the regulatory front, the RBI maintained a vigilant eye on unsecured retail credit, where rising slippage rates in personal loans and credit cards warranted continued caution. This increase in risk weights on such exposures helped moderate overheating this segment. The proposed Expected Credit Loss (ECL) framework and revised project finance provisioning norms remained important medium term surveillance parameters for the system. On the inclusion front, the roll out of the revamped Central KYC system and the RsGrameen Credit Score for rural borrowers - announced in the Union Budget were meaningful steps towards building a more granular and inclusive credit architecture.
Looking ahead, the banking system is well placed to support Indias growth ambitions. A supportive rate environment, recovering private investment, infrastructure led capex, and a clean balance sheet set the stage for sustained credit expansion in FY2027. Governance discipline, compliance culture, and the careful management of emerging asset quality risks will, however, remain the sectors most critical watch points.
BUSINESS REVIEW :
1. RESOURCE MOBILISATION
There has been an overall growth of Rs 20,450 Crore in CASA during FY 2025-26 with Y-O-Y growth of 7.30%. During the period, Saving Deposits have grown by Rs19,200 Crore registering Y-O-Y growth of 7.85%. Current Deposits have increased by Rs1,250 Crore with Y-O-Y growth of 3.51%. Term Deposit portfolio has grown by Rs 82,746 Crore with Y-O-Y growth of 19.92%. Total Deposit portfolio has grown by Rs1,00,145 Crore with Y-O-Y growth of 14.30%.
A total of 60,990 new HNI Savings Customers with average balance of Rs5,00,000/- & above were added during the year resulting Y-O-Y growth of Rs6,268 Crore i.e. 6.56% in this segment.
Similarly, a total of 10,329 new Current Deposits of HNI customers with average balance of above Rs 2,00,000/- were added during the year resulting Y-O-Y growth of Rs 590 Crore i.e. 2.70% in this segment.
With continued focus on CASA & thrust on customer acquisition, CASA Ratio of the Bank stood at 37.64% at the end of FY 2025-26.
During the year, Bank has launched a strategic business plan named "Star Udaan" for transformation of Banks CASA and Term Deposits which will strengthen Banks position in liability portfolio.
2. ADVANCES:
Banks Global Gross Advances grew from Rs6,66,047 Crore as of 31.03.2025 to Rs7,71,391 Crore as of 31.03.2026, reflecting a strong year-on-year growth of 15.82%. Gross Domestic Credit saw a steady rise of 16.10%, increasing from Rs5,63,550 Crore to Rs6,54,292 Crore over the same period. Gross Corporate Credit grew from Rs 2,40,874 Crore as of 31.03.25 to Rs 2,69,965 Crore as of 31.03.26., thereby showing a growth of 12.08% Y-o-Y.
To better serve the evolving needs of the Corporate especially the Mid-Market segment, we have significantly strengthened our specialized delivery channels. In addition to our nine dedicated Large Corporate Branches, during FY25-26, we established 9 new Emerging Corporate Credit Branches (ECCBs) at key economic hubs, taking our total ECCB count to 19. This specialized network allows us to provide localized, expert-led financial solutions while maintaining a sharp focus on increasing our wallet share within the corporate ecosystem.
With an intent to support national goal of green energy, Bank has established a dedicated Green Financing Cell. This specialized unit focuses on promoting sustainable investments, facilitating funding for eco-friendly projects; and driving financial solutions that contribute to a greener economy. By prioritizing green finance, Bank is actively supporting businesses and initiatives that align with the countrys clean energy transition. Strengthening this commitment, we have entered into strategic MoU with NABARD. These partnerships leverage collective expertise to co-finance large-scale sustainable initiatives and drive financial solutions that accelerate the countrys sustainable energy transition.
Further to support the countrys mission of fostering a digital economy, Bank has enhanced the issuance of Electronic Bank Guarantees, ensuring faster, more secure, and efficient transactions. We have on boarded PSB Alliance for online issuance of Balance Certificate to the Auditors and Auditee. Additionally, we are actively working on multiple fronts to digitize service availability for our corporate clients, streamlining processes and improving accessibility. These efforts reinforce our commitment to adopt technological innovation, increasingly help businesses navigate the digital transition with ease and reliability.
3. RETAIL:
Retail credit portfolio of the Bank increased from Rs 1,33,699 Crore as on 31/03/2025 to Rs 1,62,025 Crore as on 31/03/2026, registering Y-O-Y growth of 21.19% with an increase of Rs 28,326 Crore. We continued with our special focus on Home Loan, Vehicle loan and LAP segments during the year.
The Home loan segment recorded a growth of 16.74% from Rs 67,826 Crore to Rs 79,178 Crore during the year. The Vehicle Loan segment recorded growth of 18.72% from Rs 20,828 Crore to Rs 24,726 Crore during the year. Tie-up arrangements with auto manufacturers for vehicle loans during the year helped to increase vehicle loan portfolio.
Our Bank has approved Special Concessions for our retail products to the employees of corporate borrowers and the employees of other PSUs/ PSEs/ Reputed Corporates/ Institutions under tie-up arrangement with employers. Concession in ROI on Personal/HL/ Vehicle/ Education loan have been approved for Central Government Employees under Elite Salary Savings Account.
In Retail loan, the growth is contributed mainly by three major loan segments like Home Loan, Vehicle loan and LAP. We are focusing more on takeovers and acquisition of customers. In addition, we are focusing on Loan against mortgaged properties for increasing share of secured retail portfolio. Our focus for current year will be reducing dependency on BSA and increase of direct leads through branch/ marketing team and further increase in percentage of salaried profile under retail loan.
We are also focusing on growth of Education Loan segment through attractive product features.
We have end to end integrated our LOS with PM Surya Ghar Portal for PM Surya Ghar scheme and with PM Vidyalakshmi portal for Education loan. Further, we have introduced digital journey for all retail loan products viz. Personal Loan, Vehicle Loan, Education Loan, Loan against property and Home Loan during the year. End to End - STP journey for PM Surya Ghar and BOI Star Affordable Home Loan is on advanced stage of development and both these STP journey will be rolled out soon.
4. MSME ( MICRO, SMALL AND MEDIUM ENTERPRISES)
The MSME sector is the backbone of Indian economy and plays an important role in the employment and income generation, adding to the decentralized growth of the economy with low per capita investment. MSME Sector contributes 30% to Indias GDP, 45% to manufacturing output and around 45% of total exports.
During FY 2025-26, Bank has achieved Total MSME growth of Rs16,021 cr. (17.68%).
The growth has been supported by new business generations under Banks flagship Schemes like Welcome Offer, Asset Backed Loan, Doctor Plus Scheme, THALA etc. and it would be aided by lending under Pool-Buyout, Co-Lending, TReDS and Supply Chain Finance.
The performance under MSME segment of the Bank is as under:
| GROSS MSME ADVANCES (EXCLUDING PWO & URI) | |||||
| Particulars | Mar-25 | Dec-25 | Mar-26 | Growth YOY | Growth YOY(%) |
| GROSS | 90,639 | 1,03,191 | 1,06,660 | 16,021 | 17.68% |
| MSME |
Total Gross MSME increased from Rs90,639 crore to Rs1,06,660 crore having Y-o-Y growth of Rs16,021 crore (17.68%).
Highlights of FY 2025-26:
• As on 31.03.2026 MSME portfolio having total accounts 13,93,499 with Gross amount outstanding of Rs1,06,660 crore.
• The total NPA in MSME segment is Rs16,912 crore.
• Delinquencies in MSME book of our bank with respect to GNPA has gone down from 8.23% on 31.03.2025 to 4.96% on 31.03.2026.
• During the financial year 2025-26, in MSME 2,19,753 new accounts have been added with sanctioned limit of Rs39,141 crore. These new accounts have contributed Rs28,475 crore to the MSME book.
• Under Mudra loan bank has disbursed Rs11,585 crore, out of total sanction of Rs12,376 crore in FY 2025-26.
• Bank of India has received prestigious SKOCH Gold Award for MSME growth, MSME Banking Excellence Award 2025 (CIMSME) and Award for Best Digital Adoption under CGTMSE.
• ECCB: In order to give the boost to Mid Corporate Segment and to expand banks share in this segment the approval has been given for opening of 10 new ECCBs (Emerging Corporate Credit Branches) in addition to existing 10 ECCBs. As on 31.03.2026 total 20 ECCB branches are operational.
• Bank in coordination with CRISIL has launched "Project Saksham". The project is undertaken to improve our sector specific knowledge and to develop financial solutions for cluster based finance scheme and capacity building of selected officers.
• E-Platform: Bank has successfully implemented e-platform for processing of loan through digital medium. Mudra loans has already been processed through branch & web journey. The facility of processing of MSME loan having sanction limit of Rs10.00 Lakh to Rs 7.50 crore. on E-Platform is also successfully implemented. Digitisation of process help to reduce T-A-T & improve underwriting quality
• New Products:
> "Star Gurukul Loan" is a product introduced by bank to cater financial needs of educational institutes with simplified assessment and offering. The scheme aims to strengthen the education ecosystem by providing financial assistance for infrastructure development, modernization, and expansion.
> A new MSME product, "BOI STAR Professional Loan" has been introduced. It helps to cater instant financial credit needs of professionals like Chartered Accountants, Company Secretaries, Cost & Management Accountants, Architects & Engineers.
> "Star Gig Grow Loan" a new product has been launched to cater the business related credit needs of Gig workers.
• As an alternative method of lending "STAR DIGI BIZ Loan" scheme has been launched to provide end-to end digital loan product for working capital funding.
• The flagship products like BOI Star Asset Backed Loan, BOI Star Vehicle Express, BOI Star Equipment Express and BOI Star Contractor Loan has been modified in terms of quantum of finance and in line with industry business standard.
• Champion Sector: Bank has identified Tourism, Hospitality & Logistics as champion sector. Bank has developed, "MSME THALA" product under champion sector specific products.
• During FY 2025-26 Memorandum of Understanding has been signed with TATA Hitachi, Bajaj Electrical, Cash Invoice for Supply Chain Finance for strengthening business.
• Green Energy Financing: To promote green financing, tie-ups have been undertaken with Tata Power for solar energy projects. Further, financing support for MSMEs is being extended under MSME GIFT (Green Investment & Financing for Transformation) and MSME SPICE (Scheme for Promotion & Investment in Circular Economy) initiatives in association with SIDBI, with the objective of encouraging a green and circular economy. The bank has signed Memorandum of Understanding with SIDBI for implementation of MSME GIFT & MSME SPICE schemes.
• To promote adoption of energy efficient technologies, bank actively encourage financing under ADEETIE (Assistance in Deploying Energy Efficient Technologies in Industries & Establishments) scheme.
• Sunrise Sector: Bank is also keen to promote financing under sunrise sectors like semiconductors, Renewable energy, EVs (Electric Vehicles).
• Bank has made major changes in MSME Credit at bank level as a response to Government of Indias flagship initiative programs such as Make in India, Start Up India, PMMY, DJAY, Digital India, Atmanirbhar Bharat etc.
5. AGRICULTURE FINANCE:
a) Priority Sector Advances:
• The bank is serving for the upliftment of the agriculture and priority sector, through its network of rural and semi-urban branches.
• As of 31.03.2026, the Banks total Priority Sector Advances stood at Rs2,47,393 crore (46.08% of March-26 ANBC).
• Advances under the Agriculture sector amounted to Rs1,03,974 crore (19.37% of March-26 ANBC), of which lending to Small and Marginal Farmers (SF & MF) is Rs73,130 crore (13.62% of March-26 ANBC).
• Under the MSME sector, total outstanding advances were Rs1,06,311 crore, of which Micro Enterprises contributing Rs51,086 crore (9.52% of March-26 ANBC).
• Outstanding exposure under Education
Loans stood at Rs2,805 crore, Housing Loans at Rs34,192 crore, and other Priority Sector Advances at Rs14 crore.
• The Bank has successfully achieved all regulatory targets for FY 2025-26 across key segments, including Priority Sector Lending, Agriculture, Small and Marginal Farmers, MSME (Micro), and lending to Weaker Sections.
| Particulars | Actual O/S Level March-26 | Actual O/S Level Dec-26 | Actual O/S Level March-26 | Y-O-Y Growth (Mar 26/ Mar 26) | % of Mar- 26 Qtrs. ANBC | Regulatory Requirement | |
| (Audited) | (Audited) | (Audited) | Amt | % | |||
| ANBC | 4,73,348 | 6,26,971 | 6,36,823 | ||||
| 1) Agriculture | 1,00,126 | 1,02,119 | 1,03,974 | 3,848 | 3.84 | 19.37 | 18.00 |
| 2) Small & Marginal Farmers | 58,185 | 71,961 | 73,130 | 14,945 | 26.69 | 13.62 | 10.00 |
| 3) Micro Enterprises | 46,215 | 50,854 | 51,086 | 4,871 | 10.64 | 9.62 | 7.60 |
| Priority Sector | 2,13,227 | 2,41,743 | 2,47,393 | 34,166 | 16.02 | 46.08 | 40.00 |
(Total Priority Sector Advances are net of PWO, URI, RIDF and PSLC)
> During FY 2025-26, the Bank disbursed Rs88,673.54 crore under Agriculture, out of which Rs66,678.78 crore was extended to Small and Marginal Farmers(SF & MF).
> Our Bank also undertook PSLC transactions, selling of Rs11,980 crore under PSLC-SF & MF, with no purchases under PSLC-Agriculture. Net earnings from PSLC trading amounted to Rs253.31 crore (inclusive of GST) during the year.
> The Bank issued 1.50 lakh Kisan Credit Cards during the year, facilitating disbursements of Rs10,781.88 crore.
> Banks credit exposure to Minority Communities stood at Rs30,865 crore, representing 11.32% of Priority Sector Lending.
> Amount outstanding under Weaker Sections is Rs92,778 crore(17.28% of March-26 ANBC).
> Further, the Banks exposure to Food and Agrobased Industries stood at12,163 crore.
b) Gold Loan: The Banks Gold Loan portfolio recorded an incremental growth of Rs18,070 crore during FY 2025-26, reaching an outstanding level of Rs53,409 crore as on 31.03.2026..
c) Self Help Groups (SHGs): Bank has customer base of 6.90 lakhs Self Help Groups (SHGs), out of which 3.57 lakhs SHGs are credit linked including 3.35 lakhs women SHGs as on 31.03.2026.
d) National Rural Livelihood Mission (NRLM):
Under the NRLM initiative, a key poverty alleviation programme for rural households, the Bank sanctioned Rs3,987 crore to 52,623 SHGs during FY 2025-26.
e) Agriculture Processing Centers (Star Krishi Vikas Kendra (SKVK) & Agri Desk)
> To harness the potential available in cluster areas for substantial and sustainable quality growth of Agriculture credit in general and investment credit in particular while ensuring adherence to Turnaround Time (TAT), Star Krishi Vikas Kendras (SKVKs) have been established.
> Presently, 164 SKVKs are functional in 63 Zones across all 13 FGMOs tagged with 3,629 branches including 2,999 Rural / Semi Urban Branches for the processing of loans.
> SKVK disbursed Rs 14,994 crore during FY 2025-26.
> Additionally, 69 Agri Desks are operationalized in Zonal Office Credit department for focused & quality-driven growth in agriculture segment specially to cater Food and Agro and Agri Infra business.
> Agri Desk disbursed Rs 3,928 crore during FY 2025-26.
6. FINANCIAL INCLUSION:
Bank considers Financial Inclusion as a viable business proposition and has shifted outlook from "CSR" to "economic viability". ICT based solutions to support and secure sufficiently low cost transactions are required by the financial sector. Financial inclusion drive gained momentum with Pradhan Mantri Jan Dhan Yojana (PMJDY) programme. Bank has provided banking services in unbanked rural areas through ICT led Business Correspondent model.
PMJDY and Social Security Schemes:
During FY25-26, 13.73 Lakh PMJDY accounts were opened. Bank has also actively participated in Social Security Schemes launched by Govt. of India. During the year (202526), Bank has covered 19.22 Lakh accounts under PMSBY (Pradhan Mantri Suraksha Bima Yojana) and 12.05 Lakh accounts under PMJJBY (Pradhan Mantri Jeevan Jyoti Bima Yojana) in this period. 4.52 Lakh new APY subscribers (Atal Pension Yojana) have been enrolled by the Bank in FY 2025-26.
Star Hawker Atamnirbhar Loan (SHAL)
Star Hawker Atamnirbhar Loan (SHAL)-PMSVANidhi was launched in June 2020 to provide hassle free Working Capital Demand Loan (WCDL) up to 10,000/-, repayable in 12 EMI to street vendors under Tranche I. Second Tranche under PMSVANidhi was for those street vendors who repaid their 1st PMSVANidhi Loan. Under Tranche II, WCDL upto Rs20000/- (minimum Rs15000/-) - repayable in 18 months installments was provided to street vendors. Under Tranche III, WCDL up to Rs50000/- (Minimum Rs30000/-) - repayable in 36 months installments has been provided to street vendors.
Since September 2025, Scheme has been revised. Revised Limits are as below :
| Revised Scheme (PMS 2.0) (From Sept2025) |
| 1st Loan- Rs15,000 (Repayable in 12 Months) |
| 2nd Loan- Rs25,000 (Repayable in 18 Months) |
| 3rd Loan- Rs50,000 (Repayable in 36 Months) |
Additionally, Rupay Credit card up to limit of Rs30000/- also has been introduced for SVs who have repaid Second Tranche Successfully.
Till 31/03/2026, we have sanctioned 7.79 lakh cases (91.86%) out of 8.48 lakh applications received, with total disbursement in 7.66 lakh cases (98.33% of sanctioned applications).
PM VISHWAKARMA
In September 2023, PM VISHWAKARMA was launched for the artisans and craftspeople, who work with their hands and tools, are usually self-employed and part of the informal or unorganized sector of the economy. These individuals are referred to as RsVishwakarmas and are primarily engaged in occupations like Blacksmiths, Goldsmiths, Potters, Carpenters, Sculptors etc. These skills or occupations are passed from generation-to-generation following a Guru- Shishya model of traditional training and it is aimed to ensure that these are integrated with the domestic and global value chains. It is the goal to offer holistic end-to-end support to the Vishwakarmas (18 trades), i.e. the artisans and craftspeople, to enable them to move up the value chain in their respective trades. The Scheme is being implemented by the Ministry of MSME, DFS & Ministry of Finance. MoMSME is the Nodal Ministry for the Scheme. PM Vishwakarma is initially implemented for five years up to 2027-28. Loan up to Rs 1,00,000/- is provided at 5% interest rate (fixed) in 1st Tranche, repayable in 18 months. Loan up to Rs 2,00,000/- is provided at 5% interest rate (fixed) in 2nd Tranche, repayable in 30 months. The beneficiary will be eligible for 2nd tranche when first tranche loan is fully repaid. Further, the second loan shall not be granted before six months of the disbursement of first tranche loan. MoMSME will provide interest subvention upto 8% to the Bank as upfront.
Till 31/03/2026, we have sanctioned 22660 applications (80%) out of 28260 eligible applications and disbursed 19812 applications (87%).
Star Swarojgar Prashikshan Sansthan (RSETIs):
Bank is sponsoring 44 RSETIs across the states of Jharkhand, Odisha, Uttar Pradesh, Madhya Pradesh, Maharashtra and West Bengal to impart training to Rural Youth. During the Financial year 2025-2026, RSETIs have conducted 1550 training programs and imparted training to 45,192 candidates ensuring settlement of 74.00% (33441) and providing credit linkage to 60.31% (19940) candidates to enable them for gainful employment. Out of 44 RSETIs, 43 RSETIs are graded in "AA" category for FY 2024-25 by MoRD and one is a new RSETI, which is exempted from grading upto next two years.
Financial Literacy and Credit Counseling Centres (FLCC)
FLCC/ FLCs are established as per Reserve Bank of India guidelines at Rural and Urban centres at district locations, where Bank is having Lead Bank responsibility. Banks total 50 FLCs are functional in all 49 Lead districts and one is in Non-Lead district centre. The FLCs, in addition to imparting training, also undertake remedial counselling on case to case basis for the distressed borrowers, preventive counselling through media, workshops and seminars. Till 31st March 2026, total 20.68 lakh needy distressed people were given counselling in 52,123 camps.
Centre For Financial Literacy (CFL): Pilot Project
In terms of communication dated December 10, 2020 from RBI, we have been advised that RBI had announced expanding the reach of CFL to every block in the Country in phased manner by March 2024. We have been associated as one of the sponsor banks since initial implementation of CFL Pilot Project which stands scaled up w.e.f. 01.12.2021. We were entrusted responsibilities for sponsoring of total 186 CFL, funded from Depositor Education and Awareness (DEA) / Financial Inclusion Fund (FIF) with some portion to be funded by sponsor bank. Accordingly, we have opened / scaled up 186 CFLs in five States (Jharkhand, Maharashtra, Odisha, Madhya Pradesh & Uttar Pradesh) in collaboration with RBI Identified Five NGOs from 1st December, 2021. Put together, all 186 CFL have conducted 2,63,464 camps and total 88,82,261 distressed people have been counselled up to 31.03.2026..
Regional Rural Banks:
Post amalgamation, we are sponsoring only one RRB, Madhya Pradesh Gramin Bank (MPGB) in Madhya Pradesh after merger with Madhyanchal Gramin Bank, covering 55 districts with a network of 1320 branches as on 31.03.2026. MPGB is managed by the Chairman deputed from Bank of India and the performances are being monitored by General Manager FI & RRB (Div.) from Head Office. All the branches and administrative offices of MPGB are on CBS platform with system generated report facility. MPGB is enabled on RTGS, NEFT and ATM platforms. Our RRB has a business mix of Rs58,931.29 Crore as on 31.03.2026.
Lead Bank Scheme:
Our Bank has Lead Bank responsibility in 49 districts of the country across five states (spread over 21 Zones), details of which are as under:
| Name of State | No. of Lead Districts | Name of Lead Districts |
| 1 Jharkhand | 15 | West-Singhbhum, Seraikela- Kharsawan, Ranchi, Bokaro, Dhanbad, Ramgarh, Hazaribagh, Gumla, Lohardaga, East-Singhbhum, Koderma, Chatra, Giridih, Simdega and Khunti |
| 2 Maharashtra | 12 | Gadchiroli, Kolhapur, Bhandara, Sindhudurg, Nagpur, Raigad, Sangli, Wardha,Ratnagiri, Chandrapur, Gondia and Solapur |
| 3 Madhya Pradesh | 13 | Bhopal, Sehore, Khandwa, Khargone, Rajgarh, Dhar, Agar- Malwa, Burhanpur, Dewas, Barwani, Indore, Ujjain and Shajapur. |
| 4 Uttar Pradesh | 07 | Barabanki, Unnao, Lucknow, Hardoi, Farrukhabad, Mainpuri and Kannauj |
| 5 Odisha | 02 | Mayurbhanj and Keonjhar |
a) Main functions envisaged for LDMs:
> Monitoring the implementation of the District Credit Plan
> Associate with the setting up of Financial Literacy Centres (FLCs), RSETIs by banks
> Associate with organizing financial literacy camps by FLCs and rural branches of banks
> Holding annual sensitization workshops for banks and Government officials with participation by NGOs/ Panchayati Raj Institutions (PRIs)
> Arranging for quarterly awareness and feedback public meetings, grievance redressal etc.
> Convening meeting of DCC/ DLRC/ BLBC in their districts/ blocks
> Organizing periodical meetings of DDM/ LD/ Government Officials for resolving outstanding issues
> Flow of credit to priority sector and weaker sections of the society
> Timely submission of data to SLBC/ Government/ NABARD/ RBI
> Review of relief measures (in case of natural calamities wherever applicable)
> To act as business facilitator for growth of Bank in the district.
> Monitoring of progress under 4 KPIs (CASA, PMJJBY, PMSBY and APY) in Aspirational Districts.
Under Lead Bank Scheme, the Bank is assigned the role of coordinating the efforts of all lending institutions for a planned growth through branch network and credit deployment in the districts for sustainable growth to meet the social objectives in terms of GOI guidelines. In nutshell, Lead District Manager acts as a catalyst between the Government and Financial Institutions. LDMs are extended arm of banks for coordinating between District Administration, NABARD, RBI, other formal & non-formal agencies directly or indirectly involved in the development of the District.
7. INTERNATIONAL
The Bank has 22 Overseas Branches, 1 Representative Office at Jakarta (Indonesia), 4 Subsidiaries, 1 Associate/ Joint Venture, all spread across 15 countries in 5 Continents of all time zones. The contribution of foreign operations in Banks global business mix has been 14.36% as on 31.03.2026.
Overseas Subsidiaries and Associates:
i) PT Bank of India Indonesia Tbk
ii) Bank of India (Tanzania) Ltd
iii) Bank of India (New Zealand) Ltd
iv) Bank of India (Uganda) Ltd
v) Indo-Zambia Bank Ltd. (IZB) - Joint Venture
8. CREDIT MONITORING:
Monitoring of the credit portfolio is essential in order to maintain and improve the asset quality of the bank and minimize credit risks. The main objective of Credit Monitoring is to safeguard the quality of loan portfolio and minimize the risk of loan turning into Non-Performing Assets (NPAs). It has to endeavor for roll back of identified stressed accounts/ watch list accounts in standard category. The Department is using various tools and methods for identifying and monitoring stressed accounts with signs of weakness/ potential default/delinquencies to ensure good asset quality coupled with containment of probable slippages effectively.
Tools for efficient monitoring & control process:
Zonal Collection Centre (ZCC):
Zonal collection Centre (ZCC) was formed in August 2023 in all the Zones. The primary objective of the ZCC is to focus on reduction of SMA and DNPA by timely collection of dues and various matters of credit monitoring to be carried out by other officials in CrMD of the Zones. The ZCC will be responsible for SMA account of Rs25 lakh and above, with target of roll back of SMA to regular category.
They are required to educate and counsel the borrowers regarding consequences of account moving to SMA category with emphasis on deteriorating credit scores and lesser power to negotiate loan amount and interest rates. ZCC members are also required to insist on the borrower to pay the entire overdue and the critical amount. Prompt repayment will lead to better credit scores and ability to negotiate for better rate of interest. ZCC members should also insist the borrower to shift their primary operative account to our Bank. They should also insist for takeover of business accounts of retail borrowers.
If the borrowers are not able to shift their primary operative account to our Bank, the ZCC members should obtain ECS/ NACH/e-NACH.
For accounts with exposure less than Rs 25.00 lakh, the main responsibility of follow-up lies with the Branches, however, if necessitated, they are permitted to avail the services of ex-Staff and BCs and suitable instructions were given to the field functionaries for the same.
Introduction of in-house MIS System - Qlik:
With the support of HO IT & MIS, we have introduced inhouse reporting system (BOI-Pulse) to avail the daily position of SMA & DNPA data on daily basis to the field functionaries. In addition to this information pertaining to our Department, seventeen reports were made available in the module viz., Latest SMA, Repetitive SMA, Valuation Expiry, Stock Statement Expiry, Review Expiry, Future Demands in TL/DL etc., to enable the FGMS / Zone / Branches to take benefit of readymade information for their effective monitoring of advances. We are developing, predictive models using AI & ML for identifying pre delinquency in the RAM accounts. The Model is developed based on data factors like Borrower behavior predicting SMA which takes into account historical data such as Timely repayment, repeated SMA, avg balance outstanding, cheque bounce. Model for MSME accounts has been made live based on CBS data and to enhance model maturity by incorporating external data fields like CIC data.
SMA Monitoring:
Apart from SASCL, focus is there on SMA monitoring. Branches have been made disciplined to start monitoring SMA 0 accounts so that the remedial actions can be taken at initial steps and the concerned account do not move further to SMA 1 or SASCL.
Reminder calls from Call Centre:
A dedicated team of 100 people deployed at our call Centre is working for Monitoring of advances. They are engaged in outbound calling for SASCL & SMA borrowers.
Collection Management System (CMS):
We have already implemented Collection Management System, which will help us in managing SMA/DNPA portfolio by providing Digital Platform to Branch officials. Following are the scope of work:
1. SMA Risk Gradation
2. SMA/DNPA account list with all relevant information like overdue amount/address/Contact Details etc.
3. Tracking of SMA movement (Roll Forward/Backward)
4. Updating of Collection actions & Customer response, including Promise to Pay (PTP)
5. Visibility of past communication
6. Pushing of reminder SMS/IVR/email to the borrower
7. Suggestive corrective action
8. Integrated with Call Centre to capture customer response through outbound calling
9. Geo tagging & Suggested next visits based on field officer location
10. MIS for Branch/ZO/NBG/HO for better monitoring
Collection in SMA account through Pay-link: To strengthen our Recovery in SMA accounts, Bank share customized Pay-link in Reminder SMS/Whatsapp to the SMA borrower to make instant payment through multiple payment channel. We also initiated UPI payments for the loan accounts to enable instant and frictionless collection from borrowers
System Asset Classification (SASCL):
A predictive program in identifying the probable slippages showing overdue of more than two months period based on record of recovery as well as for accounts showing technical irregularities such as non-submission of Stock statement over three months insufficient/ no credit in CC accounts etc. This may cause downgrading of accounts if timely corrective action is not taken. These accounts are monitored specifically by various verticals for containment of downgrading of standard assets. A new SASCL format has been devised which is more user friendly and will provide more focused information to the field. Going forward, we have moved to daily generation of SASCL and marking of NPA. At present, NPA identification and marking is taken place on daily basis. The SASCL Data is circulated on monthly basis at the beginning of the month and also Daily SASCL Reports are circulated on daily basis along with maintaining the same in internal RsGaruda folder for access of everybody. Generally, the accounts are identified from the List of Accounts as per the Daily SASCL Reports, but while NPA marking at the EOD, all the accounts are verified and the accounts, other than the Daily SASCL are also marked, if eligible under the IRAC&P Norms, due to any modification/changes carried out during the day.
Daily marking of NPA:
The Bank has migrated to daily marking of NPA w.e.f. 15.04.2021 to have more transparency in identification of NPA & for compliance of regulatory guidelines.
IRAC&P Automation:
RBI vide their Circular No: RBI/2020-21/37 Ref No: DoS. CO.PPG./SEC.03/11.01.005/2020-21 dated 14.09.2020 advised all the Banks to put in place and upgrade their Systems by 30.06.2021 to fully automate the processes for identification, Income recognition, Asset classification of advances / investments as NPA / NPA, provisioning and generation of related returns. Accordingly, we have implemented the Automation of IRAC&P Norms in our Bank. Delolitte has conduct the Audit for the same.
Early Warning Signal:
A fully tech based EWS solution is implemented in our Bank since August 2020. Our EWS is fully automated solution with in built well defined work flow. Alerts are generated based on both internal (CBS and Rating Data) and external Data (MCA, CIC etc). The generated alerts help the Bank for identifying incipient weakness and initiate proactive timely remedial measures. The solution helps the Bank in early identification of Fraud in accounts (if any). This solution also enables the branches for close monitoring of accounts. At present, EWS alerts are being generated in the accounts with exposure above Rs 1.00 Crore.
Credit RFA/ Fraud examination:
RBI issued master direction on Fraud Risk management dated 15.07.2024 for Banks. Accordingly, based on the EWS and other aspects accounts are marked as RFA and subsequently, examined from Fraud angle based on internal/ external audit. Thereafter, the process of fraud examination is completed and decision is taken within the regulatory timeframe.
CRILC Reporting:
Identification of the accounts in SMA category triggers mitigating steps such as follow-up for regularization, restructuring etc. In terms of RBIs revised guidelines, stressed accounts with credit limit of Rs 5 Crore and above are reported to RBI on CRILC platform on weekly/monthly basis.
End to end collection Services:
With adherence to the Industry best practices and EASE 8.0 suggestive reform agenda, we are considering to outsource collection activity by onboarding collection partner. In this regard, we have given the Banks consent to participate in shared collection platform run by PSB Alliance under DFS direction.
Under this initiative, we will get facilitated with Feet on Street services for collection in RAM Accounts having exposure upto Rs5 Cr and DPD more than 30 days. In this regard approval has been taken by the competent authority and the same is conveyed to PSB Alliance. At present, Expression of Interest (EOI), floated by PSB Alliances to explore the number of participants and services available. Accordingly, RFP floated
Credit Inspection:
A system of review of Accounts through credit inspection has been put in place for review of Accounts with limit of Rs 5 Lakh.
Credit Process Audit (CPA):
Credit Process Audit is to ensure compliance of Pre and Post disbursement terms of sanction terms / covenants, where in the disbursing officer, before parting with the Banks funds, has taken all necessary measures for creation/perfection of security with a view to ensure enforceability of the said securities. Now, CPA in Finacle is already integrated to monitor in real-time.
PSRS Scrutiny & Certificate:
PSRS is an important tool to evaluate and ensure the quality of sanction/ appraisal which has a bearing on the asset portfolio and in turn a healthy bottom-line of the Bank. We also timely conduct Post Sanction Review System Scrutiny for all Accounts with exposure of Rs5 Lakh and above in respect of sanctions accorded at FGMO level and also ensure that this exercise is conducted at FGMO and Zonal level. We also made available PSRS statement in Qlik Portal.
Stock Audit:
We ensure timely conduct of Stock & Receivables audit in eligible accounts and take active/preventive steps wherever warranted. The stock audit is presently applicable to standard advance accounts having working capital exposure of Rs5 crore and above. It is required to be conducted annually. Assets showing inherent signs of weakness, such as out of order position, overdue Bills under Letters of Credit, invocation of guarantees, review overdue etc., which pose a threat to the banks asset quality, are followed up at various platforms & levels through Tele / Video conferencing.
A new menu for stock audit (STKADT) has been developed in Finacle for stock audit MIS, which will enable us to get timely information about the status of Stock Audit in any applicable account.
Monitoring of Restructured Accounts (RFCRS portfolio):
To guard the asset quality of accounts restructured under RFCRS, a dedicated team is formed at Head Office, FMGO and Zonal Office level/Zonal Collection Centre, which ensures close monitoring of RFCRS accounts. Apart from the same, SMS are being sent from HO level to all RFCRS borrowers including the DNPA borrowers with enhanced monitoring of the account the portfolio is being reduced by regular payment.
Agencies for Specialised Monitoring (ASM):
As per IBA guide lines ASM (Agencies for Specialised Monitoring) is appointed in accounts having total Banking exposure of above Rs250 Crores and accounts with exposure of a specialised nature except in some exempted category accounts like Navaratna Accounts and PSU / Government Guaranteed accounts. We are also engaging services of ASM in stressed accounts wherever required.
Other monitoring tools:
> Centralized monitoring of Pre-disbursement & post disbursement covenants implemented for strengthening Compliance level.
> Policies are in place for Red Flagging of accounts on observance of EWS & examination of Fraud angle within a specified timeline in terms of regulatory guidelines. Prompt reporting is ensured once account is declared fraud, in RBIs CRILC platform.
> Whatsapp, SMS & IVR are being sent to SMA borrowers and CC/OD & TL borrowers for repayment intimation. In addition to this, SMS are being sent in vernacular languages as well.
> Separate list of accounts where review is overdue for more than a month and where stock statement is due for more than a month is being provided to branches on a monthly frequency for aversion of technical slippages.
9. NON-PERFORMING ASSETS
NPA Reduction & Performance Metrics
| Parameter | Mar25 | Mar26 |
| Actual | Actual | |
| Gross NPA | 21,749 | 15,306 |
| Net NPA | 5,359 | 4,250 |
| Gross NPA (%) | 3.27% | 1.98% |
| Net NPA (%) | 0.82% | 0.56% |
> On a Year-on-Year (y-o-y) basis, Gross NPA improved by 29.62% in absolute terms, while the GNPA ratio improved by 129 bps, declining from 3.27% to 1.98%.
> The target for FY27 is to bring the GNPA ratio below 1.50%.
> Net NPA reduced by 20.69% in absolute terms, with the NNPA ratio improving by 26 bps, from 0.82% to
0.56%.
> Cash Recovery and Upgradation, as a percentage of Opening GNPA, improved to 28.79% in FY26 as against 24.90% in FY25.
> Total Cash Recovery from Written-off Accounts stood at Rs2,674 Crore during FY26, compared to Rs2,365 Crore in FY25, registering a growth of 13.07%.
Key Highlights
> Significant reduction in both Gross and Net NPA levels.
> Strong improvement in recovery and upgradation efficiency.
> Enhanced recovery from written-off accounts
Strategies for Recovery Enhancement Resolution and Recovery Mechanisms
> Resolution of NPA accounts is actively pursued through:
• SARFAESI actions
• NCLT proceedings
• Enforcement of guarantor securities via SARFAESI/DRT
• Sale of assets to ARC/NARCL
• Mega E-Auctions
• Compromise and OTS schemes
• Settlement of Guaranteed claims
> Operational Initiatives
> Rs5,067.44 Cr recovered in FY26 due to:
• Activation of field functionaries
• Regular virtual recovery camps for OTS
• Periodical Recovery campaigns
• Mega E-Auctions for unresolved properties
> 31 Asset Recovery Branches (ARBs) established across India for early resolution.
> Campaigns and Drives
> Ongoing initiatives include:
• Samjhauta Day, Weekly Recovery Camps, Mega E-Auctions & Intensive Recovery Camps
> Recovery momentum sustained through consistent nationwide efforts.
> OTS Schemes
> Special schemes—Star Sanjeevani and BOI OTS—reviewed and relaunched from 01.04.2026 for FY27.
> In FY26:
• Star Sanjeevani and BOI OTS schemes extended until 31.03.2027
• OTS approvals granted in 1,68,558 accounts with outstanding balance of Rs3,868 Crore
• Estimated cash realization: Rs1,771 Crore (repayment ongoing)
> Written-off Accounts Recovery
> Recovery strategies for PWO accounts mirror core resolution mechanisms, including:
• SARFAESI/DRT enforcement
• NCLT resolution
• Compromise settlements
• ARC/NARCL sales
• Star Sanjeevani and BOI-OTS schemes
> Auction Strategy
• Mega E-Auctions conducted bi-monthly.
• Additional focused auctions:
> Home Loans, LAP, ARB accounts, Vehicles.
• Aim: Resolve 50% of listed properties through sale/OTS/upgradation.
• Publicity undertaken at HO level through multiple channels.
> CGTMSE Claim Settlement
• Claim lodgement drive launched in FY26.
> 16,127 claims settled, resulting in NPA reduction by Rs814 Crore
10. TREASURY
Forex Business: The Treasury manages the foreign exchange business of the bank, providing hedging solutions to the customers through forwards and swaps. Apart from having Centralized Treasury at Mumbai, the Bank has 1(one) satellite dealing room situated at New Delhi, 1(one) BCP site at Kolkata and 1(one) centralized back office in Gift city (Ahmedabad) so as to provide better services to the customers. During the financial year 2025-26, Merchant and Interbank turnover was Rs1.32 lakh Crore and Rs110.80 lakh Crore respectively. The aggregate turnover of Banks forex business during the year was Rs112.12 lakh Crore. Aggregate forex turnover increased 15.54% compared to last FY
2024- 2025. The Treasury actively participates in trading in Currency Futures and is one of the leading banks in all the exchanges. During the Financial Year 2025-2026, Banks Turnover in Currency Futures was USD 9.55 Bn.
Treasury Operations & Investments:
Bank continued to play an active role in all segments of the market - Money market, Bonds and Derivatives in FY
2025- 26. Treasury Branch actively manages liquidity through various sources of funding including refinances, Overnight borrowings against excess SLR and CD borrowings. This helped in keeping cost of funds under check and supporting sustainable Net Interest Income. Bank has maintained a higher level of investments by holding SLR investments in excess of the regulatory requirement of 18.00% of NDTL from time to time to ensure that sufficient liquidity is available by the way of borrowing against excess SLR from Repo/TREPS windows. As on 31.03.2026 the gross SLR investments were Rs 2,08,663.03 Crore (81.92% of total Investments) and Non- SLR investments stood at Rs 46,039.68 Crore (18.08% of total investments). The Non- SLR investments also includes Recapitalization bonds of Rs 23,490.39 Crore. M-Duration of SLR AFS portfolio stood at 2.70% as on 31.03.2026 against 3.64% as on 31.03.2025. M-duration of Total AFS portfolio as on 31.03.2026 stands at 2.45%. In concurrence with the Green initiatives taken by Government of India, RBI had issued notification for sale of Sovereign Green Bonds. As on 31.03.2026 the Treasury branch has investment exposure of Rs997.09 Crore in Sovereign Green Bonds. All the investments are made in accordance with the Board approved investment policy which is reviewed periodically to respond to market developments/regulatory requirements.
11. INFORMATION TECHNOLOGY DEPARTMENT
1) Intelligent Process Automation (IPA)
Intelligent Process Automation (IPA) aims at optimizing Banks operational efficiency by automating manual, repetitive tasks within the Banking system and Banking operations using technologies such as Robotic Process Automation(RPA), Machine Learning(ML), APIs, Intelligent Document Processing (IDP) and other hyper automation tools.
Through this Bank aims to streamline operations, enhance efficiency, optimize resource allocation, increase accuracy, freeing up human resources to focus more on strategic activity.
2) Resilience Operation Centre (ROC)
RoC is established to enhance IT infrastructure resilience and ensure continuous monitoring of critical systems at the Bank. It leverages AI-driven root cause analysis (RCA) and predictive insights to resolve incidents proactively. RoC focuses on minimizing disruptions, ensuring high availability, and maintaining compliance.
The ROC team monitors a total of 22 critical applications using an advanced suite of tools.
| Tools | Applications | No. of Applications |
| Dynatrace | CBS, DCMS, CRMNXT, E-platform, IMPS, IDAM, NACH, NEFT, SMS, Treasury, UPI , UPI Recon, CBDC & FO Treasury | 14 |
| Tools | Applications | No. of Applications |
| Entuity | Core Network devices Domestic, FCBS & RRB | 3 |
| Heal | UA (Mobile Banking & Internet Banking) | 2 |
| Elastic | ATM Switch | 1 |
| Manage Engine | CCMS (Credit Card Management System) | 1 |
| TSOM | SWIFT (DC/DR) | 1 |
| TOTAL | 22 |
3) Star Quality Test Centre (SQAT)
This initiative aims to streamline testing operations, enhance the quality of digital services, and align with the Banks digital transformation strategy, which is increasingly complex due to the expansion of IT systems. Previously, QA testing was managed independently by individual application owner/ business departments, leading to high turnaround time for testing, inconsistent processes, limited automation use, and operational inefficiencies.
| Average TAT Per Module | Before Testing COE | After Testing COE |
| Small modules | 12 Days | 7 Days |
| Large modules | 24 Days | 9 Days |
4) Centralised Digital Payment Processing System (CDPPS)
This solution offers a centralized, integrated platform that brings together major payment rails under one umbrella, ensuring seamless transactions, enhanced control, and improved efficiency.
Key Features
1. Comprehensive Payment Integration: Supports UPI, IMPS, NACH, RTGS, NEFT,
BBPS, and SWIFT, enabling seamless domestic, regional, and high-value international payments.
2. End-to-End Payment Management: Provides a centralized view of all payment processes, covering initiation, execution, messaging, and external system connectivity.
3. Multi-Tenancy Architecture: Designed for deployment across Bank of India, its Sponsored
RRBs, Foreign Centres, and Indian subsidiaries, ensuring scalability and adaptability.
4. Future-Ready Infrastructure: Supports emerging technologies including Digital
Currency, E-Toll, and ONDC, with CBDC already implemented.
With its robust capabilities, this platform reinforces operational efficiency, enhances financial connectivity, and ensures a smarter, more secure payment ecosystem.
12. DATA ANALYTICS :
New initiatives:
During the year under review, the Bank significantly advanced its data, analytics and Artificial Intelligence agenda under Project Star ADITYA (Analytics-Driven Insights to Yield Actions). The programme, which began as a foundational data and analytics build, has now matured into an enterprise-wide intelligence platform that powers customer engagement, credit underwriting, risk and fraud defence, regulatory reporting and channel modernisation across the Bank. The major initiatives undertaken by the Data Analytics Department during the year are summarised below.
1. Project Star ADITYA - Building the Banks
Intelligence Platform
Project Star ADITYA continues to anchor the Banks transformation into a data-driven institution. The foundational build, comprising an enhanced Data Lakehouse, enterprise-wide data governance, advanced analytics and a modern business intelligence layer, was completed during the previous year. During FY 2025-26, the focus shifted to expanding analytics use cases, deepening adoption across the Bank, and laying the groundwork for the next wave of Generative and Agentic AI capabilities.
Modernised data platform: The enhanced Data Lakehouse now ingests data from over 40 internal and external source systems, offers more than three times the storage capacity of the legacy platform, and makes business-critical and regulatory data available substantially earlier each day. New external data sources such as Account Aggregator, MCA, Udyam and bureau feeds have been integrated to enrich customer and credit insights.
Enterprise data governance: A comprehensive data governance framework comprising data quality monitoring, data lineage, business glossary, metadata management and a network of data stewards across business departments is now operational. The Banks Data Quality Index has improved to over 99.8%, and the Bank received the TransUnion CIBIL Best Runner- Up Award for Data Quality Improvement during the year.
Advanced analytics and machine learning: The
Bank now operates 35 production machine learning models across eight business domains, supporting credit underwriting, early warning of stress, crosssell, customer retention, share of wallet estimation, fraud detection, customer intelligence, and audit and compliance. These models have driven a 1040% increase in sanctioned business across crosssell campaigns and substantial improvements in collections and recovery outcomes.
2. Customer Experience and Engagement
A core objective of Project Star ADITYA is to translate analytics into a more personalised and responsive customer experience. Key outcomes during the year include:
> StarFinSnap interactive monthly statement:
A single, secure, interactive monthly statement combining eight legacy customer statements into one, delivered to customers via Email, WhatsApp and SMS. Customers can track product holdings, monitor spending, view personalised offers, and search and download transactions. The Bank now dispatches close to 9 lakh interactive statements every month.
> Personalised Customer Engagement:
Pre-qualified offers, Next Best Action recommendations, spending insights through the Spend Analyzer feature, and proactive engagement nudges are now delivered through the mobile and internet banking channels, supported by analytics-driven customer segmentation.
> Improved Customer Outcomes: Product per Customer has improved from 1.5 to 2.6, the Customer Satisfaction Score has improved from 89.9% to 96.2%, and the average complaint turnaround time has reduced from 50 days to 12 days, reflecting the combined impact of analytics, automation and process redesign.
3. Universal Application enhancements
The Banks omni-channel Universal Application has been enriched with new functionalities during the year, including digital insurance journeys, Senior Citizen Savings Scheme extension, instant e-Debit Card issuance, online address update, Aadhaar OTP- based registration, additional state and central tax payment facilities, and accessibility enhancements for differently abled customers.
4. Risk Intelligence, Fraud Defence and Regulatory Reporting
Fraud and mule account detection: The Banks mule account detection capability is among the fastest in the public sector banking space. During the year, a large number of mule accounts were identified and frozen, protecting customer balances and strengthening the Banks defences against financial fraud.
Early warning and risk monitoring: An expanded early warning signals framework now operates across all branches of the Bank, supporting proactive identification of stress in retail, MSME, agriculture and corporate portfolios.
Regulatory reporting modernisation: All RBI returns of the Bank are now submitted through the Centralised
Information Management System (CIMS), and all Element-Based Reporting (EBR) returns released by the Reserve Bank of India have been fully automated end-to-end. This places Bank of India among a small group of banks to have completed full automation of EBR returns. Risk-based regulatory returns including LCR, NSFR, ALM and capital adequacy continue to be generated through the Banks enterprise risk platform with revised RBI guidelines incorporated during the year.
Forward-looking risk frameworks: Implementation of the Interest Rate Risk in the Banking Book (IRRBB) framework and the Expected Credit Loss (ECL) framework under Indian Accounting Standards has been initiated, with parallel runs planned during the coming year.
5. Business Intelligence and Decision Support
The Banks enterprise BI platform, BOI Pulse, has emerged as the single source of truth for management and field decision-making. Over 28,000 employees across the Bank - from Head Office to branch level - now actively use the platform, with role-based access to more than 500 reports and 40 live dashboards. Key dashboards delivered during the year cover business performance, customer experience, cross-sell pipeline, complaint management, financial inclusion, market analysis, data quality and risk monitoring, with self-service and drill-down capabilities reducing dependence on intermediate offices.
A new Market Intelligence dashboard has been built during the year to support strategic branch and business planning. The dashboard maps the addressable banking market at district level, highlights priority growth markets, and supports informed decisions on branch network expansion.
6. EASE Reform Performance
The Department continued to be a key contributor to the Banks performance under the Enhanced Access and Service Excellence (EASE) reform agenda of the Department of Financial Services. The Bank was placed third nationally on the Innovation Metrics under EASE 8.0, with the Department contributing the substantive analytics, governance and AI parameters of the Innovation pillar. The Departments customer-facing initiatives have been aligned with the "Responsive, Inclusive, Seamless and Engaging" themes of EASE 9.0.
7. API Banking
API Banking has enabled secure and standardized communication between a banks systems and third- party applications such as corporate clients, and government platforms, Third party applications — to directly integrate through APIs. These APIs are typically exposed via an API Gateway, which ensures security, traffic management, authentication, and monitoring. API banking is a key enabler of digital transformation, allowing them to deliver faster, more innovative, and customer-centric services.
a) Third Party & Government platforms
Integrations at API Gateway -
> 350+ API requirements received for third party integrations.
> 150+ APIs deployed and live on Banks API Gateway.
> API Gateway currently integrated with 50+ external entities/systems like NeSL, NSDL, RBIH, BESCOM, CERSAI, ICEGATE, SIDBI, UIDAI etc.
> API Gateway is currently integrated with Government entities like DoT (Department of Telecommunication), DoT (Department of Telecommunication), Indian Cyber Crime Coordination Centre (I4C) , NHB - CDRIHL, NeSL - Digital Balance Confirmation Portal (DBCP),UIDAI.
b) Corporate Customer On boarding to BOI
Open Banking -
> Developer portal has been made live, enabling customers and partners to access Banks API services. This enables simple API integration with your existing systems, allowing for a smoother digital experience.
> Non-Financial APIs like "Account Statement Enquiry , Account & Loan Statement by Email, Account Balance, Account Details Enquiry, Mini Statement, Get Consolidated Account Balance, Customer Enquiry" are available in production for Corporate customer onboarding.
> Financial APIs for "NEFT/RTGS/IFT/ IMPS payments" are available in Testing Environment.
> BOI Corporate customers are on boarded for Non- Financial APIssuccessfully. Financial API On boarding is under process.
8. External Recognition
The Banks data and analytics capabilities received wide external recognition during the year, including the IBEX Innovation Award for the most innovative use of technology for value realisation through analytics, the TransUnion CIBIL Best Runner-Up Award for Data Governance and Data Quality Improvement, a Special Mention for Best AI/ML Adoption at the 21st Annual Banking Technology Conference of the Indian Banks Association, and awards for Best Use of Data Analytics in Collections and Pioneer in Data-Driven Collections at the Bharat Collections Summit & Awards 2025.
13. DIGITAL BANKING :
The Digital Product base as on 31.03.2026 is as below:
| Product | As on 31.03.2026 |
| Total Credit Card | 1,21,655 |
| Merchant Acquiring (POS + BHIM Aadhaar) | 19,502 |
| UPI based QR | 14,88,848 |
| Mobile Banking | 1,31,48,152 |
| Internet Banking | 6,12,516 |
| UPI | 2,71,24,278 |
| SB Accounts via Online Journey | 23,16,071 |
| CD Accounts via Online Journey | 63,617 |
| CBDC | 1,57,118 |
Planned launch of products in FY 2026-27
Digital Transformation & Payments Innovation
> Next-Generation Digital Payments (Banking Connect): Preparing for the integration of Banking Connect (Net Banking 2.0) via NPCIs Bharat BillPay Limited (NBBL). This unified infrastructure will replace legacy individual bank-aggregator connections with a standardized switch, streamlining high-value online transactions and enhancing security.
> Contactless Evolution (UPI Tap & Pay): Strategizing the full-scale rollout of UPI Tap and Pay. By leveraging Near Field Communication (NFC) technology, we aim to redefine the retail checkout experience through instantaneous, contactless payments that eliminate the need for QR scanning.
> Merchant Empowerment Suite: Aiming to deploy a comprehensive Real-time Transaction Monitoring Dashboard for Merchant Acquiring Business (POS and UPI QR). This ecosystem provides advanced MIS reporting and multi-mobile alert capabilities, ensuring business owners have unparalleled visibility and control over their digital collections.
> Our upcoming PG Payouts platform is a flexible management system designed to streamline the instant collection and distribution of funds across multiple stakeholders. It will enable corporate clients to execute secure, high-scale disbursements—covering payroll, vendor payments, and loan transfers— with 24/7 support across IMPS, UPI, NEFT, and RTGS rails. The solution further enhances operational integrity through automated bulk processing, realtime status visibility, and a robust "Maker-Checker" governance framework.
> Bank to expand its digital payments portfolio by launching comprehensive NACH (National Automated Clearing House) Sponsor Bank services. Moving beyond its role as a destination bank, our bank will now empower RBI-authorized Payment Aggregators, NBFCs, and large corporates to process high-volume recurring transactions, such as EMIs and SIPs, directly through its robust internal infrastructure. By leveraging sponsorship for NACH Aggregators, the Bank aims to boost fee income, increase CASA balances, and strengthen its role in Indias digital payments infrastructure.
> Bank of India is entering the next phase of digital innovation to make the BOI Digital Rupee (CBDC) smarter, more inclusive, and institutionally integrated
> Programmable CBDC: We are building conditional frameworks to manage subsidies and government disbursements:
o Sponsor-Level: Enabling organizations or the Government to disburse purpose-bound funds (e.g., fuel or food vouchers).
o User-Level: Permitting individual customers to set their own automation rules for spending and budgeting.
> Offline Transactions: Implementing NFC-based technology to enable payments in rural and semiurban areas with limited or no internet connectivity.
> Aadhaar-Linked Onboarding: Developing a frictionless registration process utilizing Aadhaar verification.
> Wholesale CBDC (e Rs-W): Launching institutional- grade digital currency to revolutionize and accelerate inter-bank settlements.
> Government Fund Integration: Full integration with PFMS-NACH to streamline the flow of central and state government funds directly into e Rs wallets.
> Integration with BBPS: Partnering with Billdesk to enable Utility Bill Payments (Electricity, Water, Gas) directly via the Digital Rupee wallet.
> Dedicated Merchant App: Launching specialized interfaces for Android and iOS, tailored for business owners to manage collections and cash flow.
> Accessibility for Visually Impaired: Developing inclusive UI/UX features within the existing application to ensure the Digital Rupee is fully accessible and usable for individuals with visual disabilities through assistive technologies.
> BHIM Platform Discoverability: Integrating with the BHIM ecosystem to make the BOI Digital Rupee easily discoverable for millions of existing UPI users.
Credit Card Expansion
> Frictionless Credit Issuance: In process to revolutionize the credit acquisition we will be launching a "2-Click" journey for pre-approved credit cards, delivering a seamless, near-instant issuance experience for eligible customers.
> Strategic Credit Alliances: Expanding our market footprint through the launch of Co-Branded Credit Cards in partnership with premier national brands, offering curated value propositions to diverse consumer segments.
> Real-time Affordability Solutions: Integrating
a Real-time EMI facility for credit cards across both E-commerce and physical POS terminals, providing customers with instant financing options at the point of purchase.
Specialized Products
> RsAkshaya Prepaid, a dedicated RuPay prepaid card solution specifically engineered to meet the disbursement and operational requirements of Government institutions.
> Expedited Digital On-boarding: To enhance the liabilities growth engine by deploying an improved end to end digital on-boarding platform, ensuring a faster, paperless, and frictionless account-opening experience for new customers.
> Elevated Loyalty Framework: On-boarding of a best- in-class platform for the RsSTAR REWARDS program, designed to deepen customer engagement through a more intuitive and rewarding loyalty experience.
> Logistics Transparency: Initiating a new RFP for Card Printing Services, which will introduce an end- to-end tracking mechanism to ensure secure and transparent delivery of cards to our customers.
Enterprise Mobility & Advanced Security Protocols
> A dedicated Mobile Banking Solution for Corporate Customers, providing business entities with secure, on-the-go access to cash management, bulk payments, and real-time liquidity tracking.
> Next-Generation Biometric Security: Enhanced digital security by integrating Biometric Facial Authentication across both Retail Mobile Banking (MB) and Internet Banking (IB) platforms, ensuring a frictionless yet highly secure login and transaction verification process.
> Aadhaar-based Authentication for Retail Mobile and Internet Banking users, leveraging the national identity infrastructure to streamline user on-boarding and enhance the integrity of high-value digital transactions, will be implemented.
New Initiatives - FY 2025-26
Implementation of NACH Cancellation Service
> The CRM Next application now integrates M/S Montrans APIs to fetch and cancel NACH mandates efficiently. This enhances operational precision and user experience while ensuring regulatory compliance.
Benefits of this change request
> Implementation of NACH Cancellation through CRM Next will enable branches cancel NACH mandates on behalf of customers instead of sending manual request to Head office.
> Branches can start the journey on behalf of customer, digitally through CRM Next application, where Maker and Checker are provided.
Simplified authentication for NACH mandate registration-
PAN & CUSTUMER ID
> Customers can now register mandates using PAN and Customer ID, alongside Debit Card and Aadhaar authentication.
Braille Debit Card
> A braille debit card is a specialized debit card designed for visually impaired individuals, incorporating Braille for easy identification and use. These cards feature raised Braille dots, often including the banks name and may have other accessibility features like contrasting colors and a rounded notch for proper orientation.
BOI Master Card World Debit Card
> Bank of India MasterCard World is a premium international Debit Card being launched by our Bank for customers providing access to premium travel and lifestyle benefits to our high net worth customers.
> Available to customers maintaining a Savings Bank account with the Bank, the account holder need not maintain any Minimum Balance in the Account.
> This is a premium international Debit Card with enhanced daily limit on ATM, POS and Ecommerce Channels focusing on our high net worth customers.
> Multiple offers and benefits with Reward Points are available on this card. The benefits are offered in the form of discounts on Merchants, Airport Lounge Access, Travel Privileges, Life Style & Dining and much more.
| Limits on the Card | |
| Limit Type | Amount |
| Daily ATM Cash withdrawal limit | Rs 1,00,000 |
| Card present transactions (POS) | Rs 2,50,000 |
| Card not present transactions (Ecom) | Rs 2,50,000 |
BOI RuPay Celestia Credit Card
> Celestia Credit Card is an ultra-premium RuPay Credit Card by Bank of India, designed for high end customers with an elevated standard of financial privilege.
> Celestia Credit Card is a RuPay Ekaa Contactless International Credit Card, acceptable at all channels ATM, POS and Ecommerce.
Some of the major benefits are as follows:
> Evouchers on joining/issuance
> Unlimited Airport lounge access and exclusive access to RuPay Delhi Exclusive Lounge,
> Health Checkup and Exclusive RuPay Merchant offers,
> Loyalty reward points on major spend categories: Dining, Airline booking and Fuel.
> Personal Accidental Insurance of INR 50 Lakhs, Air Accidental Insurance of INR 1 Cr; Purchase Protection of INR 2 lakhs and Travel Insurance
> With Celestia Credit Card, customers can experience the power of privilege, sophistication and global recognition.
Star Lakshmi Credit Card
Star Lakshmi Credit Card is a new Platinum variant of RuPay
Credit Card by Bank of India for female customers, in order to provide women with accessible credit, thereby contributing to a more equitable and inclusive financial ecosystem.
> Star Lakshmi Credit Card is a RuPay Platinum Contactless International Credit Card, widely acceptable at all channels ATM, POS and Ecommerce.
> The major features and benefits of Womens Credit Card are as follows:
> Complimentary Annual Health checkup.
> 8 Domestic and 2 International complimentary lounge access per annum
> Insurance cover of up to 2 Lakhs (Personal Accidental and Permanent Disability), provided by NPCI — will be renewed on yearly basis.
> 2 times the Loyalty Reward points in POS and ECOM transactions, excluding restricted categories.
Reserve Pay in Credit Cards
> The reserve pay feature allows the bank to block a single amount in the customers credit card account, but enable multiple debits to be made against that block until the total blocked amount is exhausted.
> When a customer initiates a transaction (such as hotel booking, fuel purchase, ecommerce wallet top-up, cab services), the bank places a preauthorization hold (block) for a certain amount on the credit limit.
Biometric Based Authentication for UPI Transactions
> Currently, UPI transactions are authenticated using a UPI PIN. While effective, PIN based authentication has certain limitations such as manual inputting of PIN.
> In order to enhance both security and customer convenience, we have now introduced the Biometric Authentication process of payment experience leveraging the devices inbuilt biometric framework (such as fingerprint for Android user and face ID for iOS user), identified as a secure and user friendly alternative.
> This transaction provides convenience eliminating the need for entering UPI PIN, ensures a secured authentication process and will increase transaction success rates and reduce drop offs due to forgotten or incorrect PIN entries, thereby improving customer satisfaction.
> Transaction Limit: The per transaction limit is Rs1,000 under this authentication mechanism.
Introduction of Bharat Connect Biller Services for our
Corporate Clients
> API based ERP integration with Bharat Connect, along with a ready web module for Billers without ERPs.
> Customers can pay their electricity, water, gas, school fees and other bills quickly and securely in one place. On the other hand, Billers can use Bharat Connect platform to collect payments from customers efficiently, ensuring smooth transactions and faster settlements.
> The system supports various payment modes such as Cards, Internet Banking, UPI & wallets, ensuring seamless transaction with instant Payment confirmation.
> The Bank will earn per transaction cost via Merchant Service Fee (MSF) charged to billers for availing Bharat Connect Biller services.
> This MSF covers the cost paid to NBBL (Interchange and Switching Fee) and ensures net positive revenue for the bank, with no investment in front-end infrastructure.
Enhanced Merchant Acquiring Business:
> Bank enhanced its digital payments ecosystem by introducing a Portable UPI QR Sound Box for merchants, enabling real-time audio confirmation of successful UPI transactions and improving transparency and ease of reconciliation.
CBDC
> The Central Bank Digital Currency (CBDC), also known as the Digital Rupee (e Rs), is the digital form of currency notes issued by the Reserve Bank of India (RBI). It is Legal Tender and a Sovereign Currency, backed by the RBI, offering the same trust and safety as physical cash with the speed and efficiency of digital mode.
> In FY25-26, Bank of India significantly advanced the CBDC Pilot Phase, developing a high-performance ecosystem characterized by robust user engagement and several live innovative features:
> User Experience Enhancements:
o Auto-Load Facility: Successfully went live with the Auto-load feature, allowing wallets to be topped up automatically via linked Bank Accounts for a seamless transaction experience.
o Pin-less Payments: Introduced a PIN-less experience for small-value transactions, making digital payments as quick and frictionless as handling physical cash.
> Transaction Milestone: Achieved a peak monthly transaction value of f 2,386 Lakhs in March 2026.
> UPI Interoperability: Enabled "Interoperable UPI
QR" functionality, allowing BOI ef wallet users to scan and pay at any merchants UPI QR code seamlessly.
> Security & Branding: Integrated Suspicious Wallet Monitoring (SWR) for fraud prevention and updated the application with the new official CBDC logo and theme.
Other Initiatives taken during FY25-26
> Corporate Omni Neo Biz was made live.
> Pre-approved Credit card journey has been launched.
> Enabled Re-KYC functionality in ATM and CRM.
> Implemented QR-based complaints registration at ATMs/CRMs.
> Application of Debit Cards through CRMNEXT
> InstaPIN module has been introduced through Finacle for activation of cards through branches
14. DIGITAL LENDING
• E-Platform: During FY 2025-26, Bank garnered total digital lending business of f 128734 Crore up from Rs 68732 crore during FY 2024-25 i.e. 87 % YoY growth. During FY 2025-26, adoption level touching a new high of 98%. Out of the total Rs 128734 crore, Rs 22058 Crore has been sourced through the self-served Web Journey. ( 501% YOY growth).
Initiatives:> Launch of MSME Business loan up to f5.00 Cr and Vehicle Express loan up to f1.00 Cr offering simplified digital processing, faster approvals, minimal documentation and enhanced customer convenience
> Launch of self serve journey for Home Loan & Vehicle Loan.
> Introduction of BSA assisted digital web based journey in home loan and Vehicle loan.
> Integration with PM Vidyalakshmi Portal for sourcing Education loan.
> E- Signing & E-documentation have been implemented across all states, except Haryana with over one lakh digital document executed in FY 2025-26, demonstrating strong adoption of digital process and improved operational efficiency. The project implemented in collaboration with NESL.
> Loan management system (LMS) package is live for channel finance under BOI TradeEasy and Finastra.
> Tie up with C2TReDS as 4th platform for TReDS business.
> Under Co-lending, department is ready with new CLA (Co-lending arrangement) as per RBI guidelines dated 06.08.2025.
> Satellite based digital report for land and crop made live in 7 states for KCC loan through PSB Alliance.
> Bank has a tie up with fintech through ULI platform of RBIH to enable fetching milk pouring data and income related information for dairy financing under the Rse-Smart Dairy product.
> KCC STP journey made live on Jansamarth portal for Maharashtra & Karnataka state.
> Bank has a tie up with PSB alliance for online verification of Land records for crop-based gold loans across 24 states.
> On boarding of fintech partner for satellite report for crop based agriculture gold loan.
> Department is actively providing trainings to officers posted in Zones, SKVK, RBCs, SMECCs and Branches. Additionally, we have a dedicated support team to help the field functionaries in their digital journeys. We have also designated Officers in Zones/FGMOs as Digital Champions who are responsible for promoting digitally available products in their respective Zones/FGMOs.
> Bank is promoting Digital products on several social media platform emphasising on generating business through web journeys. The Marketing team / Digital Lending champions have been provided with laptops for quick turnaround times for sanctioning loans like Housing loan, Personal loans, Business Loans & Agriculture loans. This automation has reduced the TAT for sanction besides, mitigating several compliance and operational issues at field level.
• TReDS Business:
TReDS is an electronic platform for facilitating the financing/ discounting of trade receivables of MSMEs through multiple financiers. Bank of India is an active participant on four TReDS platforms and has 8% of market share of overall throughput of TReDS business.
Banks TReDS business outstanding has grown up by 40% YOY during FY 2025-26 and was at the level of Rs 9559 Crore as on 31.03.2026 and is expected to grow at 15% with outstanding level target of Rs 11000 crore this FY
Bank has on-boarded 4 TReDS platforms viz. RXIL, Invoicemart , C2Trades & M1 Exchange for generating business under TReDS.
• Pool Buy-out:
We are expanding partnership network by on boarding 18 NBFC including 12 first time partner, significantly diversifying the portfolio across 49 NBFC.
Scaled pool buyout operations by 47 % YoY, increasing business volume from Rs 5143 crore to Rs 7557 crore as on 31.03.2026.
Bank is having a growth strategy towards a target of Rs 8700 crore supported by strong pipeline of Rs 600 crore in new business and Rs1000 crore in active undisbursed funds.
• Co-lending:
During FY 2025-26, we have sanctioned 6 new co lending arrangements aggregating to Rs 1200 crore and disbursed Rs 570 Crores during the same period.
Incremental growth during FY 2025-26 is 55.62% over the previous FY 2024-25 with total outstanding of Rs 868 crore as on 31.03.2026.
We have estimated to reach co lending business at the level of Rs 1500 crore by 31.03.2027 through new the ups and partnership with NBFCs.
• Supply Chain Finance:
During current FY 2025-26 incremental growth of 89.80% recorded over the previous year FY 2024-25 with outstanding of Rs153 Crore as on 31.03.2026
During FY2026-27, we are expecting to reach Rs1000 crore on outstanding basis from 15 programme limit values of Rs 3125 crore on boarded and 8 programme limit of Rs 1730 crore under discussion.
15. RISK MANAGEMENT:
Risk and Control:
The Bank has an appropriate mechanism in place to ensure ongoing assessment of relevant risks on a Borrower Level as well as on a Portfolio level to maintain the trade-off between risks and returns. The Board of Directors of the Bank has an overall oversight of all risks in the Bank with specific Committees of the Board constituted to facilitate focused approach to specific risks. The Risk Management Committee of the Board (R.Com), is the subcommittee of the Board which is the apex body for Risk Management, supported by operational level committees of Top Executives for managing various risks, such as Asset Liability Management Committee (ALCO), CRMC (Credit Risk Management Committee), MRMC (Market Risk Management Committee) and ORMC (Operation Risk Management Committee).
Risk Management includes process of risk identification, measurement, monitoring, mitigation and reporting of all potential risks, in all activities and products in the Bank. These processes are well elaborated under respective policies viz. on Enterprise Wide Risk Management, Credit Risk Management, Operational Risk Management, Market Risk Management, Exposure (Bank Exposure & Large Exposure Framework), Asset Liability Management, Foreign Exchange and Dealing Room operations etc.
Banks Risk Management Framework is focused on full integration of risk management into its operations and culture. The integrated risk management framework starts with a risk management cycle, consisting of several steps: setting up the risk appetite, conducting stress testing, scenario analysis, preparing full scope risk assessment of all segments. Risks are adequately identified, assessed, measured, mitigated and reported. Risk Management is one of the core focus areas of the Bank. The Bank is working to ensure that it adopts global best practices in all the risk areas. This commitment is being achieved by investing both in people & systems and building an enduring risk culture. Bank deploys various tools and techniques for achieving Risk Management objectives viz. Prudential and internal limits Monitoring, Basel Compliant Credit Rating Models, Active liquidity management, ERM Scorecards, PQI etc.
Credit Rating thresholds are based on the performance of the specific industry/sector. Bank uses different internal Credit Risk Assessment Models and scorecards for assessing borrowers credit worthiness. The Internal Rating Model is recently recalibrated in view of the changing economic environment and evolving business models, to better capture the risk drivers and further strengthen the onboarding & underwriting standards.
In the normal course of business Banks experience various risks viz. Credit Risk, Market Risk, Operational Risk, Liquidity Risk and Interest Rate Risk.
Credit Risk is the possibility of loss resulting from a borrowers failure to repay a loan or meet contractual obligations. Bank has adopted Standardized Approach (SA) for Credit Risk Computation.
Market Risk is possibility of loss to the bank due to movement in market factors viz. Interest Rate, Foreign Exchange Rate, Equity Prices etc. Bank has adopted Standardized Duration Method (SDM) for Market Risk computation.
Operational Risk is defined as the risk of loss resulting from inadequate or failed internal process, people and systems or external events. Operational Risk includes legal risk, but excludes strategic and reputation risk. Bank calculates Operational Risk Weighted Assets through Basic Indicator Approach (BIA). Bank is in the readiness to adopt New standardized approach for computing Operational Risk
Weighted Assets, as mentioned in the draft RBI Guidelines. The Bank monitors and manages operational risks on an ongoing basis. Comprehensive set of processes, systems of internal controls, and policies are also in place, to reduce the probability and potential impact of losses from Operational Risks.
Asset & Liability Management: Bank has adopted robust ALM Practices to mitigate financial risks resulting from mismatch of assets and liabilities. Effective Assets and Liabilities Management (ALM) is essential for a banks sustainable and qualitative growth to achieve greater efficiency and profitability while reducing risk. Your Banks ALM endeavors to strengthen the Balance Sheet by reviewing the market dynamics, picking up signals emanating therefrom, and maintaining regulatory requirements. As a part of commitment for sound Risk Management practices, your Bank regularly reviews its Internal Policies on RsPricing for Loans & Advances, RsGlobal Asset and Liability Management, RsStress Test Policy to adapt to oscillations in market conditions. Your Bank further undertakes Stress Tests and Reverse Stress Tests to address any risks that may arise as a worst-case scenario. Liquidity for the Banks domestic banking operations is directly managed at the Head Office. The overseas branches and offshore unit of the Bank independently manage their liquidity requirements with support from the Head Office. Similarly, the Banks subsidiaries independently manage their liquidity requirements with adequate oversight by Risk Management committee of the Bank. Further, the Bank maintains suitable systems and processes to monitor liquidity requirements in other currencies as appropriate.
Your Banks liquidity and interest rate risk management framework is guided by a well-defined Board approved Global Asset Liability Management Policy. As part of this process, your Bank has established various Board-approved limits for liquidity and interest rate risks in the banking book. The Asset Liability Committee (ALCO) is a decision-making unit responsible for implementing the liquidity and interest rate risk management strategy of the Bank in line with its risk management objectives and ensures adherence to the risk tolerance/limits set by the Board. ALCO reviews the policys implementation and monitoring of limits. While the maturity gap, Basel III ratios, and stock ratio limits help manage liquidity risk, Interest rate risk in the banking book is monitored and managed by assessing & acting on the potential impact of interest rates changes on Net Interest Income and economic value of equity. This is reinforced by a comprehensive Board approved stress testing programme covering both liquidity and interest rate risk.
Robust behavioral analysis is certainly the core of effective ALM Management landscape. Behavioral Studies are carried out by your Bank at regular intervals to assess customer behavior to impart proper treatment of non-contractual assets and liabilities and embedded options available to customers, which are used while managing maturity gaps and repricing risk. Behavioral studies are conducted to ensure the proper placement of outflows/inflows in liquidity and interest rate sensitivity statements, which may result from balance sheet exposures like prepayment of Term Loans/Term Deposits, run-off in CASA etc. and Off-Balance Sheet (OBS) exposures like devolvement and invocation in BGs/LCs etc. The assumptions relating to non-contractual assets and liabilities are reviewed periodically, back-tested and revised as per the outcomes of the latest studies. Further, your Bank has the necessary framework and Board Approved policy in place to manage and mitigate intraday liquidity risk.
The stock of High-Quality Liquid Assets (HQLA) and net cash outflows are monitored daily under to ensure the maintenance of LCR as prescribed by the Regulator and Banks internal Policy benchmarks. Your Bank has implemented the NSFR guidelines of RBI, measuring the long-term resilience of your Bank in terms of liquidity. Your Bank identifies the inherent risks associated with changing interest rates on its Balance Sheet (On/Off) exposures from both short-term and longterm perspectives. For this purpose, the impact of change in the interest rates on Earnings at Risk (EaR) and Economic Value of Equity (EVE) is assessed with pre-defined tolerance limits, enabling the management to initiate appropriate preventive steps in a likely scenario of erosion in NII/ Net Worth. Your Bank constantly strives to ensure adequate monetary policy transmission through its benchmark lending rates. Your Banks Asset Liability Management Committee (ALCO) monitors and manages Liquidity and Interest Rate risks by modulating the asset-liability mix in the Balance Sheet and recalibrating the pricing of liabilities and assets from time to time. The ALCO, inter alia, regularly reviews the interest rate scenarios, the growth pattern of liability products, credit growth, competitive advantages, evolving liquidity conditions, adherence to regulatory prescriptions, etc.
Your Bank is measuring and monitoring Interest Rate Risk in the Banking Book (IRRBB) since June2023. Interest Rate Risk in Banking Book (IRRBB) refers to the current or prospective risk to banks capital and earnings arising from adverse movements in interest rates that affect its banking book positions wherein your Bank compute the impact on Economic Value of Equity and earning (NII) based on the 6 prescribed regulatory standardized interest rate shocks.
The Bank undertakes Internal Capital Adequacy Assessment Process (ICAAP) on a yearly basis which contains assessment / measurement of various risks (Pillar II Risk) along with the pillar I risk, the Risk Appetite of the Bank and appropriate level of internal capital required by the bank in relation to the Banks risk profile. Stress Testing Process is in place for enhancing risk assessment by providing the Bank a better understanding of the likely impact even in extreme unfavorable circumstances. The ICAAP is the process by which the bank ensures that it operates with an appropriate level of capital. It encompasses a large part of what could be considered a complete Enterprise Risk Management (ERM) framework. The ICAAP brings together risk and capital management activities in a form that can be used to support business decisions. Bank also identify the Pillar II risks relevant for the Bank, assess and measure them and suggest the mitigation plan while reporting to risk committee.
In last two and a half years the regulation around Climate Risk, Sustainable Finance and ESG has been evolving rapidly. Bank has already identified climate risk as an pillar II risk in ICAAP. Further, as the regulation and governance around climate risk has evolved, Banks Board has adopted ESG Policy (Environment, Social and Governance) for the Bank. ESG policy include the governance structure for taking the cause ahead and also set deliverables for the various departments in the Bank. The bank has also drafted a dedicated climate risk policy, through which bank has started assessing the climate risk score of its corporate borrowers. The Climate Risk policy also specifies metrics and targets which aligns the bank with the goals of Indian Nationally Determined Contributions (NDCs).
In addition, Bank has field level Risk Managers at all geographical centers (Zones, Field General Manager Office, and Overseas Branches) to inculcate the risk culture at the field functionary level also.
Banks Information Risk Management System has clear objective to protect the bank from Information Security risks in the face of acceleration in cyber-attacks and cyber security threat, specifically to financial institutions. Information security department strengthens controls to protect the brand, reputation and assets of the Bank. Bank is vigilant of the security and privacy of the data related to its patrons and account holders and takes utmost care to protect it from cyber-attacks. Bank has put in place Captive Security Operation Centre (SOC). Bank has implemented information security tools for Real-Time monitoring of Information Security breach attempts / incidents / events on 24x7 basis in order to timely prevent, detect and respond. Advanced security tools like SIEM (Security Information and Event Management), PIM (Privilege Identity Management), DAM (Database Activity Monitoring), WAF (Web Application Firewall), NBAD (Network Behaviour Anomaly Detection), Anti-APT (Advance Persistence Threat) for Web & Email Channels, Anti-DDoS, Data DLP (Data Leakage Prevention) are some of the many security solutions are deployed. Various new security solutions such as BAS (Breach & Attack Simulation), Honeypot Solution, XDR (Extended Detection & Response), TIP (Threat Intelligence platform) primarily focusing on threat hunting, prevention, detection and response are also put in place. Bank has also established Digital Forensics & Incident Response (DFIR) Lab, a strategic initiative aimed at strengthening the organizations in-house capabilities to effectively detect, investigate and respond to cybersecurity incidents. The Bank is ISO 27001:2022 (ISMS) and ISO 22301:2019 (BCMS) and PCIDSS certified. Effective brand protection services are put in place to protect Banks customers from Phishing attacks by way of fake sites. Bank has put in place mechanism to identify digital footprints of sensitive data in dark webs. Bank conducts periodic Vulnerability assessments, Penetration testing and Red teaming exercises across all CIS systems, ensuring timely remediation of identified gaps. Security awareness campaigns, especially with respect to social engineering, are conducted across the Bank encompassing staffs as well as customers through various channels of learning and communication.
16. THIRD PARTY PRODUCTS DIVISION
1. Bank of India is a Corporate Agent for Two Life Insurance companies, Four General Insurance Companies and Three Standalone Health Insurance companies. The agreement with Star Health & Allied Insurance Company Ltd. stands terminated w.e.f. 3001-2026.
2. Bank has adopted Execution model for distribution of Mutual Fund products. In the Mutual Funds business,
Bank follows an open architecture model therefore can enter into tie-up arrangements with multiple partners. Accordingly, Bank has entered into a tie-up agreement with Ten Asset Management Companies to distribute Mutual Fund products.
3. While offering the products and services of Bancassurance & Mutual Fund AMCs, the Bank adheres to the relevant guidelines of RBI / IRDAI / AMFI /SEBI or any other regulator which are binding upon it.
4. The Existing Tie up arrangement of the Bank with various Insurance companies under each category as well as with Mutual Fund AMC is as follows:
Existing Tie-ups :-
| Products | Tie-up Partner |
| i Life Insurance | 1) Star Union Dai-ichi Life Insurance Company Ltd. |
| 2) LIC of India | |
| ii General Insurance | 1) IndusInd General Insurance Co. Ltd. (Formerly known as Reliance General Insurance Co. Ltd.) |
| 2) Bajaj General Insurance Ltd. (Formerly known as Bajaj Allianz General Insurance Co.Ltd.) | |
| 3) Generali Central Insurance Co. Ltd (Formerly known as Future General India Insurance Co.Ltd.) | |
| 4) New India Assurance Co. Ltd | |
| iii Health | 1) Care Health Insurance Co. Ltd. |
| Insurance | 2) Niva Bupa Insurance Co. Ltd. |
| 3) Aditya Birla Health Insurance Co. Ltd. | |
| iv Mutual Funds | Name of AMCs |
| 1) Bank of India Investment Managers Pvt Ltd. | |
| 2) UTI Asset Management Co. Pvt. Ltd. | |
| 3) HDFC Asset Management Co. Ltd. | |
| 4) Kotak Mahindra Asset Management Co. Ltd. | |
| 5) Franklin Templeton Asset Mgmt. Pvt. Ltd. | |
| 6) Bandhan Mutual Fund (Formerly IDFC Asset Management Co. Pvt. Ltd.) | |
| 7) DSP Mutual Fund (Formerly DSP BlackRock Investment Managers Ltd.) | |
| 8) Aditya Birla Sun Life Mutual Fund (Formerly Birla Sun Life Asset Management Co. Ltd.) | |
| 9) Nippon India Mutual Fund (Formerly Reliance Mutual Fund). | |
| 10) SBI Funds Management Private Limited |
5. Bank has earned a total Commission income of Rs 259.90 Crore during FY 2025-26 from Life, Non-Life & Mutual Fund businesses, as detailed below:
| TPP Segment | Commission Income |
| Life Insurance | 200.29 |
| General Insurance | 34.03 |
| Health Insurance | 14.60 |
| Mutual Fund | 10.98 |
| Total | 259.90 |
17. MARKETING AND PUBLICITY
Publicity, PR including Social Media & Digital Marketing Initiatives:
During FY 2025-26, the Bank strengthened its brand visibility through integrated Publicity & PR activities, and digital marketing campaigns showcasing its products and digital capabilities. These initiatives were aimed at engaging customers, prospects, and stakeholders while reinforcing the Banks presence across urban and rural markets.
Publicity and PR campaigns were executed across geographies at prominent locations using a diversified media mix comprising out-of-home (OOH) media, radio, television, print, digital advertising, and social media platforms. This approach enabled extensive outreach across customer segments.
> A key highlight was the advertisement display at the Bandra-Worli Sea Link to mark the Banks 120th Foundation Day, the first such branding initiative by any BFSI/Public Sector Bank.
> For BOIs 120th Foundation Day, a 360-degree advertisement activities campaign was carried out across various media platforms including TV, Radio and Print media to touch every stakeholder- customers, staff, prospects, and convert visibility into business.
> Brand visibility was further enhanced through participation in marquee events such as the Global Fintech Fest at the Jio World Convention Centre and hackathon initiatives at Indian Institute of Technology Hyderabad.
> Transit media campaigns included full-wrap advertisements on metro trains and buses across major cities.
> Airport and railway advertising was undertaken in various cities across India.
> The Bank also maintained strong visibility during the Womens Premier League through advertising on JioStar, leveraging high viewership to enhance brand recall.
To have a sharper focus on customer engagement, visibility, and contemporary communication strategies, the Bank has onboarded new specialized agencies for Publicity & PR, Social Media & Digital Marketing.
Social Media & Digital Marketing at BOI
Digital and social media channels played a key role by enabling precise targeting, real-time engagement, and measurable outcomes, particularly in hackathon social media campaigns. Strategic platform partnerships further strengthened campaign reach and frequency. Campaigns were executed across platforms including Zepto, City Apps, YouTube, Instagram, IRCTC, PhonePe, JioSaavn, and Spotify. High-impact digital formats such as roadblocks in digital publications of The Times of India Group were also deployed to maximize audience attention.
Brand Building and Impact
The Banks publicity, PR, and digital marketing initiatives continued to strengthen brand recall, trust, and customer engagement. These initiatives remain strategic investments in long-term brand equity, reinforcing the Banks position as a reliable, progressive, and customer-centric financial institution while contributing to measurable business growth across key segments.
18. BUSINESS PROCESS RE-ENGINEERING (BPR)
BPR Department continued its focus on enhancing operational efficiency, streamlining processes and strengthening customer-centric initiatives during FY 202526. The department undertook several key initiatives aimed at improving systems, optimizing service delivery, and supporting the Banks transformation agenda.
Key Initiatives undertaken during FY 2025-26:
> Identification of Centers for New Branches: In line with the Banks expansion strategy, a data based assessment was carried out for identification of new branch locations using inputs from credit bureau data, PIN code wise advances data and RBI deposit database. Based on the study, 207 new branches were identified and operationlised during the year.
> Re-categorization of domestic Branches: The Bank carried out re-categorization of branches based on existing norms, with the objective of ensuring optimal staff deployment and improving customer service delivery.
> Updating of Banks Website: Continuous efforts were made to improve digital interface by updating the Banks website and removing obsolete content to enhance customer experience.
> Real-time updating of Manual of Instructions: The
Bank undertook real time updation of the Manual of Instructions, which serves as the primary reference for operational guidelines. This has ensured availability of updated instructions across the Bank and strengthened compliance and process uniformity.
> Star Paramarsh- Staff Suggestion Scheme: The scheme was further strengthened and expanded to capture practical and actionable suggestions from staff across all level and forums, thereby promoting a culture of participation and continuous improvement.
Enhanced Access and Service Excellence (EASE) 8.0:
The EASE Reforms Agenda was unveiled by the Government of India in January, 2018, having its genesis in the RsPSB Manthan held in November, 2017. EASE is a common reform agenda for PSBs, implemented and monitored by IBA, aimed at institutionalizing clean and smart banking. The reform process was kick started by launching the first edition of EASE 1.0 in January 2018. While the first edition EASE- 1.0 laid the foundation for reforms in PSBs, the subsequent versions 2.0 to 8.0 made the reforms journey irreversible by strengthening processes and systems and driving outcomes.
EASE 8.0 reform agenda launched as EASErise for FY 2025-26 with an emphasis on Strengthening New age credit underwriting Capabilities, Building Artificial Intelligence based risk assessment framework, Gen-AI based Centralized Business Intelligence Units to assess market and Strategic cost optimization & management.
The focus of EASE 8.0 is on four key themes:
> Risk and Resilience
> Innovation
> Socio-economic Impact for Viksit Bharat
> Excellence
During the Quarterly assessment of progress and implementation of the reform agenda in the PSBs, Bank has been ranked 6th (78.8%) with 151% improvement over the Baseline (31.4%) and also Ranked 3rd (84.9%) under Theme-2 (Innovation) among all PSBs during Q3 FY26.
Major initiatives undertaken by the Bank under EASE 8.0 are listed hereunder
1. Dedicated digital journey for ECDD (Enhanced Customer Due Diligence) for suspected fraud/mule cases
2. API Lifecycle Management setup for monitoring External and Internal APIs
3. Establishment of Resilience Operations Centre (RoC)
4. Braille enabled Debit/ Credit Cards for visually impaired customers
5. Banking services and products designed specifically for GIG Workers
6. Centralized RsCost Map dashboard which tracks & allocates operating expenditure and Income across various levels
7. Customer Experience (CX) team for capturing customer experience through feedback and conducting surveys on various services & products
8. Emotional well-being assessment for employees
9. Digital automated tool for SARFAESI related cases
10. Executive Directors are conducting reviews of the departments under their supervision in coordination with BPR Department.
As evident from the initiatives mentioned above, Bank will continue to focus on digitization, digitalization and building Artificial Intelligence based risk assessment framework as the key to transform itself in line with EASE 8.0 reform agenda.
19. LEGAL & RIGHT TO INFORMATION ACT:
Legal Department of the Bank acts as an essential support department and provides platform for various matters of Opinion, Documentation, Litigation etc. emanating from various other functional departments at Head Office, FCGMOs / FGMOs & Zonal Offices.
Besides attending to referral matters of various FCGMOs / FGMOs, Zones, Domestic Branches / Foreign Branches and Banks subsidiaries, the Department also caters to the specific needs of specialized Departments like Information Technology Department, International Department, Treasury Department, Digital Banking Department, Digital Lending Department, Card Products Department, Transaction Banking Department etc. by Drafting and Vetting of documents of various contracts including Service Level Agreements (SLAs), agreements for Software/Hardware procurement, various types of tie-up arrangements /new products etc.
The Right to Information Act has taken a pivotal role in the Society and many applications are received by the Bank at various levels. Bank has identified Central Public Information Officers (CPIOs) and Appellate Authority at various FGMOs/ Zones/LCBs. AGM (Law) / DGM (Law) at Head Office is designated as the CPIO for Head Office and the General Manager, Legal Department is the Appellate Authority at Head Office. The procedure for disposing of application or appeals involves collecting the desired information from various Departments and supplying the same to the applicant within the fixed time duration of 30 days and also to guide the other FGMOs/Zones on specific points.
Moreover, with a view to create awareness among the staff, Legal Department issues various circulars and guidance to FGMOs/Zones on new Legislations, amendments in Statutes and landmark judgment(s) of the Honble Supreme Court and various High Courts.
In addition to the above, the Legal Department also attends to:
> Approval of Plaints in respect of suits filed by Bank and Monitoring of said cases.
> Advising on writs, cases, appeals, claims etc. filed against the Bank, vetting of the applications/affidavits etc. wherever required.
> Attending to the various queries of Ministry, Reserve Bank of India and IBA on different matters including new Legislation/amendments under consideration on various Acts.
> Cases against Bank/Claim against Bank not acknowledged as debt/provision requirement/follow up with Zones etc.
> Consolidation of Lok Adalat data received from FGMOs / Zones
> Collection and compilation of data/statistics pertaining to suit filed/decreed cases/Lok Adalat, RTI returns and submission to various authorities like Reserve Bank of India, DFS, CIC etc.
20. COMPLIANCE
Bank has an independent Compliance Department which is headed by an officer of the rank of Chief General Manager referred to as the Group Chief Compliance Officer. The core function of the department is to ensure compliance of statutory, regulatory and Banks internal guidelines for both domestic as well as overseas operations. The department works as the single point of contact for RBI and ensures smooth conduct of Risk Based Supervision (RBS) as per prevalent SPARC framework.
Bank has in place a Board approved Compliance Function Policy which is framed as per Reserve Bank of India guidelines and is reviewed and updated annually. The policy covers the following aspects: i) Governance ii) Compliance Risk Assessment iii) Policies, Procedure and related controls iv) Compliance Monitoring and Testing v) Reporting and Communication vi) Training and use of technology to improve compliance and vii) Regulatory interaction and Coordination.
The department has adopted state-of-the-art technology in compliance to improve transparency, efficacy, oversight and effectiveness and to deal with uncertainty and manage risks, both known and emerging, thereby strengthening strategy, performance and decision making insights. The Department conducts regular testing exercises, both at head office and field levels, to confirm adherence and sustenance of RBI guidelines/instructions. The number of Compliance testing carried out is in increasing trend year on year and reporting of test results is made to the Top Management on monthly basis. Compliance testing outcomes along-with the other control measures are included for assessment of field level compliance risk assessment.
The department has recently introduced a Compliance Manual for the benefit of the entire workforce across the Bank. Automation of the entire compliance function in the bank, in line with RBI guidelines is already underway.
The Compliance Department is also overseeing compliance function of overseas establishments which follow their respective territory based compliance policies as well as KYC- AML-CFT Policies. Each overseas centre/ branch/subsidiary has an independent compliance officer to look after the respective compliance function. Overseas branches comply with the applicable regulatory requirements (home country /host country regulatory guidelines whichever is stringent) and submit confirmations / compliance sustainability reports. The compliance officer of each overseas branch undertakes monthly compliance testing and submits report to Head Office. To inculcate compliance culture at grass roots level, field level compliance officers are posted in each zone and Field (Chief) General Manager Offices (FCGMO) across India under direct reporting line of the Group Chief Compliance Officer.
The Bank, at present, has 69 Zonal Compliance Officers (ZCOs) positioned across various zones on a pan-India basis to oversee and strengthen the compliance framework at the field level. The presence of ZCOs is critical for ensuring effective implementation of regulatory and internal compliance requirements across geographically dispersed branches. ZCOs play a pivotal role in conducting onsite compliance testing of branches, which enables real- time verification of adherence to regulatory guidelines, internal policies, and control mechanisms. This will pave way for ensuring that compliance status is assessed accurately, rather than relying solely on off-site monitoring or self-certifications. With the objective of strengthening the compliance architecture, enhancing risk-based supervision, and ensuring sustained regulatory adherence at the operating level, we have introduced a structured and intensified framework for field compliance testing to be carried out by Zonal Compliance Officers (ZCOs) and FGMO Compliance Officers (FGMOCOs).
Going forward, from this FY (2026-27) onwards, field compliance testing based on the business mix of the Zone will be carried out. In each zone, top 70% of the branches based on business mix will be identfied for testing in the present FY and the TOP 20 branches in that 70% wil be subjected to rigorous testing on a quarterly basis. The 30% branches left out will invariably be subjected to compliance testing, the following year. The proposed framework aims to focus supervisory attention on high-impact branches, improve early identification of compliance risks, and ensure effective closure and sustenance of corrective actions. To meet this end, we have framed a compliance matrix based on which we are scoring the zones on their compliance parameters.
21. OFFICIAL LANGUAGE:
The Bank has a well-established Official Language Department, which ensures the implementation of the provisions of the Official Language Policy of the Government of India and promotes the progressive use of Hindi in the Bank. In accordance with the Annual Programme for the planned implementation of the Official Language Policy of the Government of India, the Bank prepared its "Warshik Karya Yojana" for 2025-26, which was released by the Managing Director & Chief Executive Officer. Hindi Day 2025 and World Hindi Day 2026 were celebrated with great enthusiasm across the Bank. On the occasion of World Hindi Day, an All- India Inter-Bank Hindi Essay Writing Competition-2026 was organized. Several competitions were conducted throughout the Bank on the occasion of Hindi Day, with participation from overseas branches as well. A Hasya Kavi Sammelan was organized on 24.09.2025. An All-India Official Language Conference was held on 07.02.2026, wherein renowned film actor and author Shri Akhilendra Mishra graced the occasion as the Chief Guest.
Monthly quizzes were organized on contemporary themes such as 150 years of Vande Mataram, birth anniversaries of eminent litterateurs, etc. An Online All-India Official Language and Bank Product Competition was also organized, in which staff members from all 69 Zones and the Head Office participated. E-learning modules on Official Language Policy, rules and implementation have been made available to all staff members on HRMS. During Hindi Month, all Zones organized Financial Inclusion Saturation drives under Financial Literacy Campaigns.
During the financial year 2025-26, emphasis was laid on capacity building of Official Language Officers and improving their performance. Accordingly, an All-India Annual Review Meeting was held on 24-25 June 2025, along with training programmes on various IT tools developed by the Government of India and Advanced Official Language Workshops. A
"Rajbhasha Shield Competition" was organized for Head Office Departments and Zones. Magazine representatives posted in Zones were felicitated. At the Head Office, Hindi Email Competitions along with "Hindi Noting & Drafting Competitions" for executives were conducted every quarter throughout the year. The Department ensures compliance with Section 3(3) to promote the progressive use of Hindi in official work. During the year 2025-26, 14 new Official Language Officers joined the Bank. Quarterly Progress Reports and Branch Inspection Reports are being submitted by all Zones on the Banks internal portal "Star Desk". E-magazines and reference materials published by Zones are regularly uploaded on the portal to ensure easy access for all staff members.
To promote work in Hindi and encourage original writing, the Bank publishes the quarterly Hindi house journal "BOI Varta" and the quarterly bilingual house journal "Tarangan". During the year, the honorarium for contributors has been doubled. Two essay compilation books—"Bank, Bhasha aur Kritrim Budhdimatta (Artificial Intelligence)" and "Bharatiya Arthvyawastha evam Adhunik Banking: Data, Bhasha and Gen Z"—were released during the year. An updated bilingual e-version of the "Manual of Instruction - Deposits" has been uploaded on the Banks internal portal. The booklet "Banking Terminology - Retail Loans" has also been prepared. The weekly "Suprashidh Vyaktitwa Shrinkhala" is being regularly circulated through email, providing information about the lives and achievements of eminent litterateurs, social reformers, musicians, etc. Various reference materials have also been prepared by Zones to promote the use of Hindi. In addition, all Zones organized Essay Writing Competitions and Official Language Seminars.
On 14th and 15th September 2025, during Hindi Day 2025 and the 5th All-India Official Language Conference, Bank of India received the "Second Prize" under the Rajbhasha Kirti Awards in the category of organizations with more than 800 employees. In a seminar organized by the Department of Financial Services, Ministry of Finance, Government of India, the Bank secured the "Second Position" under Region RsB for excellent implementation of the Official Language Policy. In the Conference, TOLIC (Bank), STC Noida, under the coordination of the Bank, received the "First Prize" under the TOLIC Rajbhasha Awards. Additionally, five TOLICs coordinated by the Bank—Nagpur(Sarvshresht), Gurugram, Mainpuri, Keonjhar and Ratnagiri—were also awarded "Certificates of Appreciation". Under the Regional Awards declared by the Department of Official Language, Ministry of Home Affairs, Government of India: Goa Zonal Office received the Second Prize in the Western Region under Category RsC, Pune Zonal Office received the Third Prize in the Western Region under Category RsB, TOLIC, Nagpur (under the Banks coordination) was awarded in the Western Region under Category RsB. TOLIC Muzaffarpur was awarded in the Eastern Region under Category RsA. During the year, 39 offices and branches received awards from various Town Official Language Implementation Committees. Further, 21 staff members of the Bank received awards in All-India Level Essay Writing Competitions organized by various banks.
During the year, approximately 250 Official Language Workshops were conducted, in which 5,923 staff members were trained. The Bank is successfully discharging the responsibility of coordinating 16 TOLIC as assigned by the Government. During the year, 10 offices of the Bank were inspected by the Honble Members of the Third Sub-
Committee of the Parliamentary Committee on Official Language and all inspections were completed smoothly.
22. HUMAN RESOURCES, LEARNING AND DEVELOPMENT:
A. HUMAN RESOURCES:
Decision making in HR is aimed to be more data- driven to improve efficiency and transparency. Bank aims to achieve consistency through building capability and continuous learning and development.
> As on 31.03.2026, there were 51,010 employees on the rolls of the Bank. Out of this, there are 29194 Officers, 17238 Clerks and 4578 Subordinate Staff.
During FY 2025-26, Bank recruited 870 Staff Officers in General Banking and Specialist cadre and 639 in Clerical cadre. Further, during FY 2025-26, under Compassionate Appointment Scheme, Bank has appointed 48 Clerks and 33 Sub-Staff. During FY26- 27, the Bank plans to recruit 1219 (705 (700 GBOs + 5 Specialist Officers in JMG-I) + 514 (Credit Officers in MMG-II to SMG-IV) Staff Officers and 1700 clerical staff.
> In Succession Planning, endeavour is being made to bridge systematically the gaps of skill shortage in critical areas of Corporate Credit, Credit Monitoring, Recovery, Treasury etc. and also in the emerging areas such as Infrastructure Financing and Financial Inclusion, through mapping of competencies vis-a-vis critical roles identified.
> In Talent Management sphere, a focussed Talent Review & Development Process is being undertaken to ensure that the current incumbents and potential employees in these roles will be suitably trained and groomed to assume these roles in time.
> Towards paperless HR, various digitisation initiatives such as Online acceptance of terminal dues applications, complaint handling, Investment dashboard for the management etc., submission of Form 12BB in HRMS have been implemented.
> Bank has implemented a gender neutral "Prevention of Sexual Harassment at workplace (POSH) Policy in strict compliance of Government of India instructions as are advised from time to time, for empowerment of women. It has been the endeavour of the Bank to eliminate any form of sexual harassment and ensure safe & conducive and harmonious work environment to guarantee that all employees enjoy equality, dignity and respect
> Officers who are interested and are having flair of working in specialized areas like Credit, Risk Management, Treasury etc., are being identified through RsStar Hunt scheme. After selection, such officers are trained in the vertical they are selected for and are posted in identified fields.
> To promote self-learning many courses from identified institutes as well as under MOOCS were included in the Banks Capacity Building. Customized training programmes have also been formulated in collaboration with external training institutes like CRISIL, IIBF, CAB Manipal Institute etc. for imparting trainings in areas like Credit, Compliance etc.
> Bank aims to ensure seamless implementation of various HR initiatives like Job Family, Succession Planning & Talent Management Process and any other Government directive envisaged in PSB Reforms Agenda for Enhanced Access & Service Excellence (EASE).
> Bank has implemented RsBank of India Code of Ethics & Conflict of Interest Policy towards ensuring an organization based on ethics and moral values and a work environment free of any kind of bias/ discrimination and harassment.
> We are committed to strict compliance and implementation of Equal Opportunity Policy in our bank towards eliminating all forms of discrimination and ensure that the persons with disabilities enjoy equality, dignity and are empowered and better equipped to perform at par with others.
• Credit Life Insurance to Staff Members availing Staff Loans : Bank has entered in an Memorandum of Understanding (MOU) with its Insurance Partner, SUD Life Insurance Co. Pvt. Ltd. which will provide Credit Life cover at low cost to the employees of the Bank who avail loan under Staff Loan schemes, viz. Staff Housing Loan scheme, Staff Vehicle Loan scheme and Scheme for extending Personal Overdraft facility to Staff Members. This initiative will not only ensure the financial security of employees but also aligns with the banks goal of providing comprehensive protection to its employees.
• Modification in Staff Housing Loan: The Scheme has been modified with the 2 major modifications with regard to (i) increase in number of dwelling units to THREE, interest rate to third dwelling unit/ residential property considering it as Commercial Real Estate Exposure and (ii) eligibility of Staff Housing Loan for maximum FOUR dwelling units/ residential properties) in Staff Housing Loan Scheme (Staff Officers & Award Staff members).
• Review of BOI Milestone Award Scheme: The Milestone scheme has been reviewed wherein it is proposed to bring the concept of fixed weight i.e.
25 grams irrespective of the cost of the silver medallion instead of fixed monetary ceiling.
• Manpower Plan : The Manpower Plan for the year 2026-27 has been finalized taking into account the vacancies to be filled in through direct recruitment for Officers and Customer Service Associates; To have appropriate allocation of Manpower resources across the Bank, to augment and improve business / service excellence of the Bank and to manage affairs of the Bank efficiently administrative transfers are being issued by Head Office.
• Promotion of Digital Rupee and credit of quarterly reimbursements through Digital Rupee Wallet:
The Bank has implemented this initiative as a step forward in our collective mission of building a digitally empowered and financially inclusive Bank of India. All Offices and Branches take proactive steps in promoting digital awareness and encouraging day-today use of the Digital Rupee for personal and official transactions
• Star Bonding an initiative under Employee Engagement and Connect has been undertaken for all the Branches. Under this initiative various employee engagement activities are designed to foster the spirit of team bonding, collaboration, rewards, recognition, having fun and above all creating a Happy Workplace. The amount has been allocated to all the Zones for utilization and utilization certificates obtained.
• Recognition of Divyangjan on 03.12.2025 (On the eve of International Day of Persons with Disabilities) - On the eve of International Day of Persons with Disabilities, Divyangjan employees were honoured for their achievements across all Zones via video conference. 12 awards were presented in categories like Customer Service, Business Excellence, and Inspirational Performance (6 in Award Staff and 6 in Officer Cadre). Winners received certificates, trophies, and gifts, and Senior HR management interacted with them. The programme left employees feeling valued, motivated, and proud.
• Staff Accountability Portal has been made live on 24.12.2025. There has been significant reduction in TAT in Disciplinary Proceedings. Process improvements in document sharing and inquiry panels already yielding results. It has been proposed for Automation & Inquiry through VC setup to further reduce TAT and improve transparency.
• Holiday Home Booking made online for retired staff - The booking on holiday homes has been made online on BOI Alumni Portal for retired staff members thereby enabling them to book the holiday home with ease.
• Absorption of Tax Liability arising out of Perquisites value on account of concessional and interest free loans extended to the employees for the FY 2025-26.
• Star Pratibimb (HR Evaluation) for year 2025-26- HR Evaluation at 3 levels i.e. Zonal Office to Zonal Office, Training Centre to Training Centre and Branch to Branch. The process has been completed for the year wherein evaluation is done on 10 parameters with marking system in 100. The process ensures in evaluation of HR policies and incorporate/ implement the best HR practices.
• The Bank has implemented significant structural reforms in disciplinary proceedings, resulting in faster resolution of cases and improved transparency. A large number of cases have been concluded, providing timely relief to field functionaries.
• SHE Box Portal has been updated with the details of all FGMOs/ Zones of the Bank
• The following processes have been automated in HRMS
> Automation of Salary Zero in case of Unauthorized Absence for continuous 30 days
> Auto mailer facility of Password Reset through RPA Bot
> TOAS - Subsidized Accommodation Module for all zones and Rent payments
> Sensitive Post - Auto Mailer for staff superannuating within 3 months
> Payment of F&F claims through HRMS
> Family pension application
HR Transformation: We have now completed two years of the BOI STARLIGHT Project, which has driven meaningful change across the Banks HR systems, processes, and capabilities. With 15+ employee-centric digital tools and 40 lakh+ page hits, the project is helping build a more performance-oriented, technology-enabled, and employeecentric organization. During the period under review, the following key milestones have been achieved.
> Performance Management System (PMS): A more robust and objective PMS has been institutionalized through role-based KRAs, expanded measurability, and fairer comparisons across roles. With 2,000+ unique roles, 1,000+ data points, and 290+ cohorts, the new framework has strengthened appraisal objectivity and helped reduce bias between field and administrative roles.
> Digital Recognitions: To reinforce a stronger performance-oriented culture, the Bank has institutionalized structured recognition initiatives like monthly Digital Wall of Fame, with 900+ officers recognized across 5 core business parameters including CASA, Advances, NPA, CSAT and digital transactions.
> Transfer & Promotions: End-to-end transfer and promotion processes have been digitized on the StarLIGHT portal, with 1,500+ bilingual transfer orders issued digitally and 8.4K+ promotion applications received / processed, improving efficiency, transparency, and process tracking.
> Star Saarthi: The Bank has introduced Star Saarthi, a GenAI-powered transition ready reckoner designed to support employees with location-specific insights across multiple parameters such as healthcare, housing and accommodation, education facilities, care and therapy centers, and branch details. The tool has seen strong early adoption and has helped simplify employee transition journeys.
> Star VidyAi: Building on the Banks first-in-industry GenAI learning interventions, Star VidyAi has been strengthened as a GenAI-powered learning tutor for functional and behavioral capability-building. Through interactive and scenario-based learning, the tool is helping officers build product, policy, and communication capabilities in a more engaging and practical format.
> Star Samarth 2.0: Star Samarth 2.0 is the Banks Employee Assistance Program, designed to support employee well-being through counselling, emotional support, and awareness interventions for officers and their families. The platform has seen 3,000+ employee registrations, 300+ family member registrations, and 1,000+ counselling sessions, supported by Emotional Care Champions, counselling access, and webinars across themes such as self-development, work- related concerns, mental health, family issues, and lifestyle support.
> Target Setting: Scientific target setting has been further strengthened through market-linked and branch-contextual inputs, resulting in materially improved target quality. The redesigned approach has shown ~70% acceptance of suggested targets and a 32x stronger correlation with market growth, helping align business expectations more closely with local realities.
> Centres of Excellence: Three STAR APEX Centres of Excellence have been established at MDI Belapur, STC Noida, and ITTC Pune, with 13 training batches conducted under the revamped methodology and 15+ external partners engaged to strengthen advanced banking and behavioral capability-building.
Beyond the above, initiatives are in place across the entire employee journey to strength performance orientation, talent management, and streamline other HR processes, while keeping employee well-being at the centre of the transformation.
Compliance with Reservation Policy for representation of SC/ST/OBC/EWS/PwD/Ex-SM:
The Bank is strictly complying with the reservation policy of Government of India. Separate cell for SC/ST and OBC has been set up at Head Office as well as in all Zonal Offices which takes exclusive care in implementing the reservation policy and redressal of grievances related to SC/ST/OBC Employees. EWS reservation in Direct Recruitment was implemented in the Bank since 01st February 2019.
Representation of SC/ST/OBC/EWS staff as on 31.03.2026:
| Cadre | SC | % to total staff | ST | % to total staff | OBC | % to total staff | EWS | % to total staff | Total |
| OFFICER | 5216 | 17.86% | 2633 | 9.01% | 8983 | 30.77% | 564 | 1.93% | 29194 |
| CLERK | 2567 | 14.89% | 2092 | 12.13% | 4996 | 28.98% | 476 | 2.76% | 17238 |
| SUBSTAFF | 1580 | 34.51% | 542 | 11.83% | 1308 | 28.57% | 4578 | ||
| TOTAL | 9363 | 18.35% | 5267 | 10.32% | 15287 | 29.96% | 1040 | 2.03% | 51010 |
23. LEARNING AND DEVELOPMENT:
Learning and Development (L&D) Department has played a pivotal role in advancing the Banks strategic objectives through comprehensive employee training and capacity building initiatives. In an evolving banking landscape shaped by technological advancements, regulatory changes, and shifting customer expectations, the L&D team continues to focus on equipping employees with the skills and knowledge required to thrive in a dynamic environment.
During this year, more than 32000 employees participated in various training programmes covering a wide range of topics such as leadership, credit, forex, risk management, customer service, digital banking, and cyber security awareness, etc.
To foster a culture of continuous learning, the L&D team strengthened the Banks internal knowledge platform and introduced personalized learning journeys aligned with individual career aspirations. The bank further collaborates with reputed training institutions viz. IIM Udaipur, IIM Kozhikode, IDBI Hyderabad, IMI New Delhi, CAFRAL, CAB Pune, NIBM Pune, Indian School of Business (ISB)
Hyderabad & Mohali, ASCI Hyderabad, IIBF, IIBM, BIRD Lucknow/Mangaluru, Unext, Institute of Insurance and Risk Management (IIRM), Hyderabad, etc.
All training colleges are collectively bringing out monthly magazine, Star Darpan. Other publications like Sandipani and Vijeta by training colleges are instrumental in the skill upgradation of employees
Three training colleges have been designated as Centres of Excellence and were launched as under:
| Centre of Excellence | Date of launch |
| Star APEX, Belapur for People and Leadership Development | September 08, 2025 |
| Star APEX, Noida for Credit and Risk Management | December 08, 2025 |
| Star APEX, Pune for IT and Customer Service | February 23, 2026 |
It is proposed to designate the remaining training colleges as Centres of Excellence, the details of which are as under: -
• STC Bhopal for Agriculture & Priority Sector Lending
• STC Kolkata for Sales & Marketing
• STC Chennai for General Operations
• STC Goa for Audit & Compliance
Looking ahead, the Learning and Development Department remains committed to building a resilient, future-ready workforce by aligning training efforts with the banks transformation agenda and long-term vision.
24. CUSTOMER EXCELLENCE BRANCH BANKING:
> Customer Excellence Branch Banking Department redresses the grievances raised by customers on different channels such as web portal, Call Centre, email, hand delivery etc. While ensuring effective and timely redressal of the grievances, our Department also fosters the sense of service excellence among the customers, by way of motivating the field staff to serve the customers with smile.
> There are various levels for supervision and monitoring of Internal Grievance Redressal Mechanism in our Department, Customer Service Committee of the Board (CSCB) being on the Top of the ladder. A comprehensive note on the Internal Grievance Redressal Mechanism is placed before the CSB every quarter, as per regulatory requirements, for their assessment of the functionality and activities of the Department coupled with the performance on various parameters.
> Standing Committee on Customer Service (SCCS) meeting is conducted on monthly basis to review the grievance redressal mechanism and customer service in the Bank. The Committee is headed by Executive Director, participants being CGMs/General Managers of various verticals. Issues pertaining to different departments, which are escalated to our Department for resolution are sorted out and discussed in these meetings wherein directions by the Top Management are passed on to the respective departments for speedy, effective and conclusive redressal of the grievances.
> In EASE 8.0 also our Banks performance has been showing marked improvement quarter on quarter.
> We have been ranked 1st amongst Public Sector Banks by DFS in CPGRAMS portal from Nov25 to Feb26 and stood 2nd in the months from July25 to Oct25 and in the month of Mar26.
> We have robust Complaint Management System
i. e. Star Sampark (CRM Next) which captures all complaints emanating through various channels. Every complaint is having unique ID which can be tracked online by the customer. Notification of updates with regard to the complaint is sent to the complainant through SMS /email on their registered mobile number/ email ID. Complainant can also reopen complaints if not satisfied with the resolution provided by the Bank.
> We have also implemented Feedback Capturing Mechanism through various sources to assess the satisfaction level of our Banks services among our customers. Feedback through QR code is captured for branch visiting customers. We have also implemented robust mechanism to monitor feedback received from our customer i.e. Qlik Sense Portal. Qlik Sense portal monitors the Customer Satisfaction Score (CSAT) which represents feedback responses provided by the customer of our Bank.
> Our Call Centre is being revamped and new state of the art next gen AI call centre will be established in this Fiscal. Call Centre caters to various services to our customers 24x7x365.
25. BRANCH NETWORK & EXPANSION
Bank has a geographically well spread branch network in India and abroad. Bank had 5511 branches in India as on 31.03.2026. Composition of Banks domestic branch network is as under:
| Category | 31.03.2025 | 31.03.2026 | ||
| No of Branches | % to total | No of Branches | % to total | |
| Metropolitan | 974 | 18.36 | 1022 | 18.54 |
| Urban | 851 | 16.04 | 913 | 16.57 |
| Semi-Urban | 1573 | 29.66 | 1642 | 29.79 |
| Rural | 1906 | 35.94 | 1934 | 35.09 |
| Total Domestic Branches | 5304 | 100 | 5511 | 100 |
| Digital Banking Units | 02 | --- | 02 | --- |
During the year 2025-2026, Bank has opened 207 new branches. The category wise break up of newly opened 207 branches is as under:-
| Metro | Urban | Semi Urban | Rural | Total |
| 50 | 57 | 68 | 32 | 207 |
26. DOMESTIC SUBSIDIARY MANAGEMENT DIVISION:
BOI Services Limited (BOISL) (formerly known as BOI Shareholding Ltd):
Bank has investment of Rs 6.65 Crore in BOISL, a wholly owned subsidiary of the Bank. BOISL acts as Depository Participant (DP) for both the depositories - National Securities Depository Ltd. (NSDL) and the Central Depository Services (India) Ltd. (CDSL). The Company also commenced its Corporate BSA activity in April 2024.
Bank of India Investment Managers Pvt. Ltd. (BOIIMPL) & Bank of India Trustee Services Pvt. Ltd. (BOITSPL) (Erstwhile BOI AXA Investment Managers Pvt. Ltd. and BOI AXA Trustee Services Pvt. Ltd.):
These subsidiaries are in the business of Mutual Fund and Investment Advisory Services under SEBI Investment Advisor Regulations. Bank of India is holding 100% stake in BOIIMPL and BOITSPL with investment of Rs 98.10 Crore.
BOI Merchant Bankers Limited (BOIMBL):
Established in 2014, BOI Merchant Bankers Limited is engaged in merchant banking business including arranging of Syndicated Loans, Bonds and Debentures. It is a wholly owned subsidiary of the Bank with paid up capital of Rs 10.00 Crore.
STCI Finance Limited:
Established in 1994, STCI Finance Ltd., acts as a nondeposit taking NBFC. Bank of India with 29.96% holding (investment of Rs 130.10 crore) is the largest stakeholder in STCI. STCI Primary Dealer Ltd. (STCIPD) is a wholly owned subsidiary of STCI Finance Limited. STCIPD commenced its operations in June 2007 and is one of the leading primary dealers in the country.
Star Union Dai-Ichi Life Insurance Company Ltd. (SUDLIFE):
Bank of India, Union Bank of India and Dai-Ichi Life International Holdings, Japan have formed a Joint Venture "Star Union Dai-Ichi Life Insurance Company" to provide life insurance services to its clients. The company commenced insurance business in February 2009. BOI holds 27.48% (investment of Rs 132.92 Crore), with UBI holding 25.10% and Dai-Ichi Life International Holdings holding 47.42% stake in the Company.
ASREC (India) Ltd. was floated by the Specified Undertaking of the Unit Trust of India (SUUTI) to undertake securitization and asset reconstruction activities. Bank holds 26.02% stake (investment of Rs 27.60 Crore), in the Company.
INVESTMENT / ALLIANCES:
National Asset Reconstruction Company Ltd (NARCL) -
IBA has set up Bad Bank to resolve the NPA issue in Banking Sector. Bank has invested Rs 247.50 Crore in NARCL with 9.00% holding.
India Debt Resolution Company Ltd (IDRCL) - IBA has also set up IDRCL to provide debt management service to NARCL. IDRCL brings expertise to the table - with its team of sectoral experts and turnaround specialists. Bank has invested Rs 0.80 Crore in the company with 4.00% holding
National Commodities Management Services Ltd. (NCML) is promoted by the National Commodity and Derivatives Exchange Ltd. (NCDEX). It was incorporated on 28.09.2004 to promote and provide collateral management services for securing, managing and controlling securities and commodities. Bank holds stake of 2.34% in the equity capital of the company with Investment of Rs 3.00 Crore.
SWIFT India Domestic Service Pvt. Ltd. a joint venture company promoted by SWIFT and 9 major Banks including Bank of India. SWIFT is holding 55 % equity and remaining 45% is held by 9 major Banks. Bank of India has an equity stake of 2.81% in the company with an Investment of Rs 7.71 Crore.
Acuite Ratings & Research Limited (Earlier SME Rating Agency of India Ltd. (SMERA))
06 by SIDBI in association with Dun & Bradstreet, one of the leading providers of commercial data and analytics. The Companys objective is to provide comprehensive, transparent and reliable ratings which would facilitate greater and easy flow of credit to SME sector. Bank holds a stake of 1.96% in the equity capital with an investment of Rs 0.28 Crore.
OTHER STRATEGIC INVESTMENTS:
Bank also has strategic investments in following entities:
( Rs in crore, as on 31.03.2026)
| Name of the Company | Book Value# | Face Value |
| SIDBI | 650.53 | 15.10 |
| METROPOLITAN STOCK EXCHANGE OF INDIA | 0.00 | 5.00 |
| ONDC | 14.47 | 20.00 |
| NPCI | 10.00 | 10.00 |
| Invent Assets Securitization and Reconstruction Pvt Ltd | 5.35 | 4.00 |
| SBI DFHI LTD | 29.99 | 4.42 |
| CERSAI | 50.70 | 2.16 |
| AGRICULTURE FINANCE CORPORATION | 1.82 | 1.26 |
| Central Ware Housing Corporation Ltd | 39.92 | 1.03 |
| PSB Alliance | 1.76 | 2.00 |
| CSC e-Governance services India Ltd | 12.10 | 1.00 |
| Name of the Company | Book Value# | Face Value |
| CCIL | 14.09 | 0.50 |
| U.V. Asset Reconstruction Co. Ltd | 0.32 | 0.15 |
| SWIFT | 1.81 | 0.14 |
# In compliance with RBI Master Direction on Clarification, Valuation and Operation of Investment Portfolio by Commercial Banks (Directions) 2023 dated 12.09.2023. All investments were fair valued on initial recognition and the subsequent Appreciation / Depreciation was transformed to General Reserve as on 01.04.2024. Accordingly, the investment in unlisted strategic investment were fair valued through breakup value and Book value of investment was changed w.e.f. 01.04.2024.
27. FRAUD RISK MANAGEMENT
Good corporate governance serves as an important factor in control of fraudulent activities. It may be true that Fraud itself cannot be eliminated but fraud risks can be managed and mitigated like other business risks with a proactive framework such as -
> Devising and managing Fraud Risk Management Framework with board approved Policy supported by Operational Manual & SOPs,
> Timely Reporting of Frauds to Regulators and Board,
> Diagnosis and root cause analysis of fraud cases and implementation of remedial measures and steps to mitigate risks thereof in respect of product deficiencies with support from stake-holders departments at HO,
> Dissemination of modus operandi & reasons for occurrence of fraud by way of Circulars / instructions to avoid the risk of recurrence of frauds of similar nature, at branches,
> Sensitizing staff through short alert messages through tickers / periodical messages through MMS and training/ Video Conferencing on Fraud prevention in coordination with Learning & Development Dept,
> Enterprise wide Fraud Risk Management Solution (EFRMS) encompassing all non-credit delivery channels except cards; which is being monitored through separate solution, has been implemented covering domestic branches and one overseas centre, with CORM approved SOP.
> Working on RsIndian Cyber Crime Coordination Centre (I4C) portal managed by LEAs to provide required data in coordination with Digital Banking Department and Freezing of the accounts for blocking further damage to customers,
> Filing of Complaints with Law Enforcement Agencies (LEAs) by branches/ controlling offices.
> Issuance of LOCs as per extent guidelines of IBA (Indian Banks Association) basing on direction from MHA (Ministry of Home Affairs).
Highlights during the year:
> Perpetration of new frauds reported during the FY 2025-26 is Rs732.42 crore (excluding 12 frauds of Rs1094.09 crore which are re-reported after reexamination) which shows decrease on comparing with frauds reported in FY 2024-25 amounting to Rs1073.49 crore (excluding five frauds of Rs375.72 crore which were re-reported after re-examination). Twelve cases with amount involved Rs1094.09 crore which were de-activated as per Supreme Court verdict dated 27.03.2023 are re-reported by us during FY 202526 after re-examination, complying with Principle of Natural Justice. Hence, excluding these 12 cases, involving amount of Rs1094.09 crore, total amount of fraud reported in FY 2025-26 is Rs732.42 crore only.
> Internal frauds due to staff involvement was amounting to Rs23.29 crore in FY 2025-26 which consist of 3.18% of newly reported frauds of Rs732.42 crore.
> Based on the complaints/Information received on I4C portal during the FY 2025-26, we have marked lien of Rs151.44 crore. against credit received in our banks customers account. Further as per our response on I4C portal for the victim customer of our Bank, other banks have also marked lien of Rs50.76 crore.in their customers account while attending the cyber fraud complaints on I4C (Indian Cyber Crime Co-ordination Centre) Portal.
28 VIGILANCE MANAGEMENT:
"VIGILANCE MANAGEMENT: Vigilance department is headed by Chief Vigilance Officer for vigilance administration in the Bank under the general superintendence of Central Vigilance Commission (CVC). Vigilance department covers all vigilance related matters of banks officials in domestic operations, overseas operations, and subsidiaries.
The Vigilance Administration of Regional Rural Bank sponsored by Bank of India, viz. Madhya Pradesh Gramin Bank is also supervised by Vigilance Department.
Vigilance department works under Chief Vigilance Officer assisted by one additional CVO (ACVO) and two Deputy General Managers and other officials having background / experience in the field of operations, investigation and disciplinary matters. For operational convenience, Vigilance Department has stationed one Vigilance Officer in each zone under the direct control of Vigilance Department, Head Office. Concurrent Auditors, working at overseas centres, perform the role of Vigilance Officer for overseas branches.
The Vigilance Department deals with all 3 functions of Vigilance Administration such as Preventive, Punitive and Surveillance Vigilance, with the objective of enhancing the level of managerial efficiency and effectiveness in the organisation. Communications covering gist of circulars, guidelines, and instructions etc., issued by the DFS, DoPT, CVC are circulated to field functionaries / Offices from time to time along with other related subjects of preventive vigilance".
29. FOREIGN BUSINESS DEPARTMENT
In a fiscal year marked by persistent geopolitical uncertainties and evolving supply chain disruptions, the Bank reinforced its position as a reliable partner in international trade. By leveraging its specialized Forex Back Office and a widespread presence of 206 Authorized Dealer branches across India, the Bank provides tailored forex solutions while maintaining an unwavering commitment to regulatory compliance.
In alignment with the nations goal of reaching USD 2 trillion in exports by 2030 under the Viksit Bharat vision, the Bank consistently strives to provide "single-avenue" solutions for its exporters. Despite rising protectionism and geopolitical shifts, the Banks export credit registered steady growth of approximately 10% in FY 2025-26. Export turnover in the Bank grew by 10.49%—significantly outperforming Indias overall export growth of ~6%—while the remittance business recorded an 11.86% increase during the review period.
> Centralized Foreign Exchange Back Office (FEBO): To ensure operational uniformity and strict adherence to compliance standards, the Bank has centralized its forex operations at GIFT City, Gandhinagar. A dedicated Business Continuity Planning (BCP) site has also been established in Mumbai to ensure uninterrupted service.
> NRI Help Desk: A state-of-the-art help desk caters to the Indian diaspora, providing handholding support and driving operational excellence for NRI clientele.
> Exporters Meets: The Bank organized frequent interactive sessions for exporters alongside Zonal Officers, covering all major export hubs across the country.
> Special Rupee Vostro Accounts (SRVA): Supporting the internationalization of the Rupee, the Bank has opened SRVAs for 12 banks across vital global trade destinations.
> Digital Drivers of Growth: By implementing Straight Through Processing (STP) for inward remittances, the Bank has significantly reduced turnaround times (TAT). Additionally, the phased implementation of the trade finance platform, FINASTRA will soon allow customers to initiate digital requests for trade related transactions directly from their office.
> Capacity Building and upskilling of Manpower:
To develop the talent pool in the Bank, operational and strategic training is provided on continuous basis by arranging various training programmes covering maximum number of field functionaries of AD Branches and SMECC Heads for delivering best in class services to Forex Customers and imbibing a compliance culture.
30. GOVERNMENT BUSINESS DEPARTMENT
The Government Business Vertical plays a vital role in strengthening the Banks engagement with Central/State Governments, PSUs, and autonomous bodies across India. The Vertical provides a wide range of government banking services including pension disbursement, tax collections, treasury operations, postal transactions, and management of small savings and investment schemes such as Public Provident Fund, Senior Citizens Savings Scheme, Sukanya Samriddhi Yojana, National Pension System, RBI Bonds etc.
The Vertical also facilitates account opening for Government organizations and supports integration with digital platforms such as the Public Financial Management System (PFMS). Through customized technology-driven solutions and dedicated support to branches, the Vertical enhances operational efficiency and strengthens institutional relationships.
As an accredited banker to key ministries including the Ministry of Electronics and Information Technology, Ministry of Steel, and Ministry of Skill Development and Entrepreneurship, the Bank remains committed to delivering innovative, customercentric, and value-added services, thereby contributing to the nations governance and economic development.
Key Initiatives:
1. The bank has contributed in the Social Security Schemes and mobilised 102,021 Small Savings Account in FY 2025-26.
2. Bank has signed MoUs with Defence and Paramilitary forces like Army, Air Force Navy, BSF, CRPF and ITBP for salary accounts of their active personnel and for the pensioners.
3. Bank also signed salary MOUs with some of the major PSU / PSE / Railways like SAIL, Western Railways, Central Railways, Brihanmumbai Municipal Corporation (BMC) and with State Governments of Bihar, Jharkhand, Uttarakhand, Tamil Nadu and Chhattisgarh for their employees.
4. Bank has signed MOU with NeGD under the Ministry of Electronics & IT (MeitY) to promote the digital services of UMANG application of Central/ State Government through BOI Omni Neo App.
5. Bank received an appreciation letter from Department of Pension and Pensioners Welfare for the good work in Digital Life Certificate Camps, reflecting the strength in Digital Service Delivery.
6. Bank was felicitated by PFRDA on 12th September 2025 for overall performance in various campaigns launched by PFRDA during FY 2024-25.
31. TRANSACTION MONITORING AND KYC - AML
Measures to Mitigate Cyber-Enabled Fraud and Strengthen AML/CFT Framework
The Bank has strengthened its control framework to address the rising incidence of cyber-enabled frauds, mule accounts, and risks relating to money laundering and terrorist financing through the following measures:
> Implementation of MuleHunter.AI
The Bank has deployed MuleHunter.AI, developed by Reserve Bank Innovation Hub (RBIH), for identification of mule accounts. The system enables real-time detection and immediate debit freeze of accounts involved in fraudulent and suspicious activities.
> Transaction Monitoring for Newly Opened Accounts
Velocity checks have been implemented for accounts with age up to six months. Accounts exceeding predefined thresholds—such as abnormal transaction volumes or transactions beyond 2-3 times the declared annual turnover—are flagged and immediate debit freeze further subjected to Enhanced Due Diligence (EDD). Based on EDD outcomes, appropriate restrictions are imposed.
> Real-Time Financial Fraud Risk Indicators (FRIs)
The Bank has integrated FRIs for monitoring digital transactions. Transactions assessed as high-risk, based on risk scores provided by the Department of Telecommunications (DoT), are declined in real time to prevent potential frauds.
> AI/ML-Based AML Transaction Monitoring System
All transactions, along with alerts received from I4C, NPCI, and Law Enforcement Agencies (LEAs), are processed through an AI/ML-based AML/CFT monitoring system:
> Configured with 125 Red Flag Indicators (RFIs) including 23 related to Cyber enabled financial frauds-prescribed by FIU-IND
> Supported by 72 offline RFIs operationalized at branch level
Alerts generated are examined, and accounts are subjected to EDD. Accounts with adverse findings are immediately debit frozen.
> Regulatory Reporting and Enforcement Coordination
In cases involving suspicion of money laundering or terrorist financing, Suspicious Transaction Reports (STRs) are filed with FIU-IND in a timely manner. The Bank actively coordinates with FIU-IND and LEAs to support investigation and enforcement actions.
Overall, these initiatives enhance the Banks capability for early detection, real-time intervention, and regulatory compliance, thereby safeguarding the integrity of the financial system.
32. DIVIDEND DISTRIBUTION POLICY
In terms of Regulation 43A of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, Bank has formed a Dividend Distribution Policy and the same is available on our website -
https://bankofindia.bank.in/documents/20121/25744421/5-
Dividend-Distribution-policv.pdf
ACKNOWLEDGEMENT:
The Board expresses its gratitude to the Government of India, Reserve Bank of India and Securities and Exchange Board of India and other regulatory authorities for their valuable guidance and support. The Board also thanks the financial Institutions and correspondent banks for their co-operation and support. The Board acknowledges the unstinted support of its customers, business associates, bondholders and shareholders. The Board also wishes to place on record its appreciation of staff members for their dedicated service and contribution for the overall performance of the Bank.
| For and on behalf of the Board of Directors | |
| Sd/- | |
| Place : Mumbai | Rajneesh Karnatak |
| Date : 8 May, 2026 | MD & CEO |
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