Bank of India (BOI) in 2026: The Complete Guide to a 120-Year-Old Banking Pioneer
Bank of India is one of those rare institutions whose name often gets confused with the country it serves. Yet it is not the central bank — that role belongs to the Reserve Bank of India. Bank of India, or BOI, is a public sector commercial bank founded in 1906, two decades before the RBI even existed. It is one of the oldest joint-stock banks in India and one of the most consistently underrated public sector lenders in the country.
Through 120 years of operation, BOI has weathered the First World War, the Great Depression, Partition, Independence, the nationalisation wave of 1969, the 1991 liberalisation, the global financial crisis of 2008, and the COVID disruption of 2020. In 2026, the bank crossed the ₹16.98 lakh crore global business mark, reported its highest-ever annual profit of ₹10,527 crore, and saw the Government of India extend the tenure of its MD & CEO Rajneesh Karnatak for another three years. This long-form guide walks you through everything that matters about Bank of India today — its history, leadership, products, recent financials, share price, and what banking with BOI actually looks like.
Bank of India at a Glance (2026)
Here is the no-fluff snapshot of BOI in 2026, drawn straight from the bank’s board-approved Q4 FY26 disclosures dated 8 May 2026.
| Parameter | Latest Figure (FY26) |
|---|---|
| Founded | 7 September 1906 |
| Founders | A group of eminent Mumbai businessmen led by Sir Sassoon David |
| Nationalised | 19 July 1969 |
| Headquarters | Star House, Bandra Kurla Complex (BKC), Mumbai |
| MD & CEO | Rajneesh Karnatak (tenure extended through April 2029) |
| Non-Executive Chairman | Shri M. R. Kumar (since 22 February 2024) |
| Global Business (FY26) | ₹16.99 lakh crore |
| Global Deposits | ₹9.27 lakh crore |
| Global Advances | ₹7.71 lakh crore |
| Overseas Advances | ₹1.17 lakh crore |
| Net Profit FY26 | ₹10,527 crore (up 14.19% YoY) |
| Net Profit Q4 FY26 (Standalone) | ₹3,016 crore (up 14.85% YoY) |
| Final Dividend FY26 | ₹4.65 per share (46.5% on ₹10 face value) |
| CASA Ratio (March 2026) | 37.64% |
| Gross NPA Ratio | 1.98% |
| Capital Adequacy Ratio | 18.01% |
| Stock Exchanges | BSE (532149) and NSE (BANKINDIA) |
The Origin Story: From a Mumbai Boardroom in 1906 to a Global Lender
Bank of India was born in colonial Mumbai on 7 September 1906, founded by a group of eminent businessmen led by Sir Sassoon David. The promoters wanted to create a bank with Indian capital and Indian sensibilities at a time when most large banks in the country were controlled by British shareholders. The bank started operations with a modest paid-up capital of ₹50 lakh — a substantial sum then, but a fraction of what would eventually flow through its books.
From the start, BOI carried itself differently. While many of its peers focused on serving the British trading establishment, BOI made a deliberate effort to back Indian merchants, industrialists and small traders. By 1921, the bank had opened its first overseas branch — in London — making it one of the earliest Indian banks to set up shop abroad. That international DNA has stayed with BOI through the decades and shows up today in operations across 15 countries.
Key Milestones Across 120 Years
• 1906: Bank of India incorporated in Bombay (now Mumbai) on 7 September with Sir Sassoon David as one of the founding promoters.
• 1921: Opens its first overseas branch in London — among the earliest Indian banks to do so.
• 1946: Opens its first branch in Tokyo, Japan, expanding into East Asia.
• 1969: Nationalised on 19 July as part of the first wave of bank nationalisations along with 13 other major commercial banks.
• 1989: Becomes the first Indian bank to install an Automated Teller Machine (ATM) at its M. G. Road branch in Mumbai.
• 1997: Issues its first IPO of equity shares, expanding its public shareholder base.
• 2000s: Major international expansion across Hong Kong, Singapore, Cambodia, Tanzania, Botswana, New Zealand, Indonesia and other markets.
• 2017: Crosses the ₹9 lakh crore total business mark.
• 2019: Star House-II inaugurated as additional corporate space in BKC, Mumbai.
• 2023: Rajneesh Karnatak takes charge as MD & CEO on 29 April 2023.
• 2024: M. R. Kumar, former Chairman of LIC, takes charge as Non-Executive Chairman on 22 February 2024.
• 2026: Government extends Karnatak’s tenure for three additional years through April 2029; bank crosses ₹16.99 lakh crore in global business.
Ownership, Leadership and Governance
The Government of India, through its Department of Financial Services, holds the majority stake in Bank of India — typically around 73-74% of the equity. The remainder is held by mutual funds, foreign portfolio investors, insurance companies, retail investors and other institutional holders. BOI is listed on both the BSE (under code 532149) and the NSE (under ticker BANKINDIA).
Current Leadership
Bank of India’s leadership team has been one of its quieter strengths in recent years. Two appointments stand out:
• Shri Rajneesh Karnatak — MD & CEO since 29 April 2023. A career banker with over 31 years of experience, he holds an M.Com degree and is a Certified Associate of the Indian Institute of Bankers (CAIIB). Before joining BOI, he was Executive Director at Union Bank of India (from October 2021) and Chief General Manager at Punjab National Bank. His earlier years were spent at Oriental Bank of Commerce, where he headed Mid Corporate Credit and Digital Banking. The Government of India extended his tenure for three additional years through an official gazette notification dated 23 April 2026, just days before his original term was due to expire on 28 April 2026. He will now lead the bank through April 2029.
• Shri M. R. Kumar — Non-Executive Chairman since 22 February 2024. A Science graduate from the University of Madras, Kumar previously served as Chairman of LIC of India from March 2019 to March 2023. He joined LIC in 1983 as a Direct Recruit Officer and headed three of its zones (Southern, North Central and Northern) during his career.
• Multiple Executive Directors handle credit, operations, risk, treasury and international business portfolios. P. R. Rajagopal currently serves as one of the Executive Directors, while a Chief Vigilance Officer (CVO) oversees governance and compliance matters.
BOI follows the standard PSU bank governance model — a board with government nominees, RBI nominees, shareholder-elected directors and independent directors. Recent additions to senior management have emphasised credit quality, digital banking, and risk management — reflecting Karnatak’s own background.
The Footprint: Pan-India Reach Plus 15 Countries
BOI operates one of the most geographically diversified networks among Indian public sector banks. Within India, it runs a branch network of more than 5,100 outlets spread across every state and union territory, supported by an ATM, BNA (Bunch Note Acceptor) and Business Correspondent network that reaches deep into rural and semi-urban India.
Internationally, BOI has been doing what most PSU banks only talk about: actually operating overseas at scale. The bank is present in 15 countries through a mix of branches, subsidiaries and representative offices. Major international locations include:
• United Kingdom — through Bank of India (UK) Limited and the London office.
• Singapore — a key Asian hub for trade finance and corporate banking.
• Hong Kong — significant presence for India-China-related transactions.
• Tokyo, Japan — one of the oldest BOI branches abroad, opened in 1946.
• United States — New York representative office, complemented by IBU operations.
• Tanzania, Botswana, Kenya, Uganda, Zambia — strong East and Southern African footprint.
• Bank of India (New Zealand), Bank of India (Indonesia), Bank of India (Tanzania), and Bank of India (Botswana) — fully owned subsidiaries.
• Cambodia, Vietnam (representative office) and several others.
• GIFT City IBU at Gandhinagar — for offshore banking in foreign currency.
Overseas advances stood at ₹1.17 lakh crore as of March 2026, up 14.25% year-on-year. That is a meaningful contribution to the overall book and one of the reasons BOI is often called ‘India’s international bank’ within the PSU banking circle.
The Complete Bank of India Product Universe
Savings Accounts
• BOI Star Savings Bank Account — entry-level savings account for individuals.
• Star Diamond Savings Account — premium variant with higher balance and added perks.
• Star Yuva (Youth) Savings Account — for young adults aged 18-25.
• Star Mahila Savings Account — savings account focused on women, with preferential pricing on certain products.
• Star Senior Citizen Savings Account — with concessional charges and higher FD rates for those 60+.
• Salary Account variants for government, defence, corporate and educational segment employees.
• Basic Savings Bank Deposit Account (BSBDA) — zero balance, RBI-mandated for financial inclusion.
• Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
• Minor and student accounts, NRI accounts (NRE/NRO/FCNR).
Current Accounts
BOI offers a tiered range of current accounts under the ‘Star’ branding — Star Diamond, Star Privilege, Star Premium, and standard Current Account variants — with progressive minimum balance norms and free transaction limits. Specialised current accounts are available for traders, exporters/importers and start-ups.
Fixed Deposits, Term Deposits and Recurring Deposits
• Standard Fixed Deposits with tenures from 7 days to 10 years.
• Star Sunidhi tax-saver FDs with a 5-year lock-in qualifying under Section 80C.
• BOI Star Senior Citizen FDs — additional 0.50% per annum for those aged 60+.
• Super Senior Citizen rates (typically with an additional premium on top of senior citizen rate for those 80+).
• Recurring deposits from 6 months to 10 years.
• Star Flexi-Recurring Deposits with variable monthly instalment options.
• Reinvestment Plans, Monthly Income Plans and other structured deposit variants.
Loans
• Star Home Loan — for purchase, construction, plot-and-construction, renovation, and balance transfer. Tenures up to 30 years, repo-linked lending rates.
• Star Personal Loan — for salaried customers in government, PSU, defence, corporate and reputed institution segments.
• Star Vehicle Loan — for both new and used cars, two-wheelers, and commercial vehicles.
• Star Education Loan — including Vidya Lakshmi-linked products for higher education in India and abroad.
• Star Gold Loan — quick disbursal against gold ornaments with minimum documentation.
• Star Loan Against Property (LAP) for business or personal needs.
• Star Mortgage Loan and Reverse Mortgage Loan for senior citizens.
• Star Pension Loan for retired employees.
MSME, Agriculture and Corporate Banking
• Star MSME working capital, cash credit and term loans.
• MUDRA loans (Shishu / Kishore / Tarun).
• Stand Up India loans for SC/ST and women entrepreneurs.
• Agriculture loans — Star Kisan Credit Card, dairy, poultry, horticulture, farm mechanisation, plantation.
• Self-Help Group (SHG) financing — a focus area after BOI’s April 2025 MoU with Sa-Dhan.
• Corporate term loans, working capital, project finance, syndicated lending, supply chain finance and trade finance.
Credit Cards, Debit Cards and Bancassurance
• BOI Credit Cards under partnership with leading networks — VISA, MasterCard and RuPay.
• BOI Star Smart, Eclat Select and other premium credit cards launched in partnership with the bank’s subsidiary BOI Credit Card Services.
• BOI Co-branded Defence Salary credit cards for armed forces personnel.
• RuPay Select, Visa Platinum and Classic Debit Cards.
• Bancassurance distribution of life insurance through Star Union Dai-ichi Life Insurance (SUD Life), the bank’s joint venture with Union Bank of India and Dai-ichi Life of Japan.
• General insurance distribution through other partner insurers.
• Mutual funds, demat services and PMS through approved partners.
Digital Banking: BOI Mobile, Star Connect and More
BOI has put serious effort into modernising its digital stack. As of FY26, more than 95% of the bank’s transactions are now happening through digital and alternate channels. The total number of transactions through alternate delivery channels reached 7.6 billion in FY26 — a 22% year-on-year increase.
• BOI Mobile App (Omni Neo) — the flagship mobile banking application supporting account services, fund transfers, FD/RD bookings, loan applications, credit card management and bill payments.
• Star Connect Internet Banking — full-featured net banking portal for individuals and businesses.
• UPI Integration — BOI customers can link accounts to BHIM, Google Pay, PhonePe and Paytm. The bank added 51 lakh+ UPI customers in FY26 alone, taking total UPI customers to 271 lakh+.
• BHIM BOI UPI App — the bank’s own UPI application.
• WhatsApp Banking — for balance enquiry, mini-statement and other quick services.
• Star Token NG — soft token authentication for high-security online transactions.
• Bharat Bill Payment System (BBPS), AEPS, IMPS and NEFT/RTGS — all standard inter-bank rails supported.
• GIFT City IBU Digital Platform — for international corporate banking clients.
Bank of India Financial Performance (FY26 Highlights)
FY26 was an inflection year for BOI. The board approved the results on 8 May 2026. The headline numbers tell a clear story of profitability improvement, asset quality clean-up and digital momentum.
Q4 FY26 (Quarter Ended 31 March 2026)
• Net profit (standalone): ₹3,016 crore, up 14.85% year-on-year.
• Net profit (consolidated): ₹3,087.76 crore.
• Total income: ₹22,685 crore (vs ₹21,751 crore in Q4 FY25).
• Interest income: ₹19,476 crore (vs ₹18,323 crore in Q4 FY25).
• Operating profit Q4 FY26: ₹5,026 crore.
• Return on Average Assets (RoA): 1.01% for Q4 FY26 (vs 0.96% in Q3 FY26 and 0.98% in Q4 FY25).
• Return on Equity (RoE): 16.36% for Q4 FY26.
Full Year FY26
• Net profit FY26: ₹10,527 crore — up 14.19% YoY from ₹9,215 crore in FY25.
• Operating profit FY26: ₹17,049 crore.
• Global business mix: ₹16.99 lakh crore, up 14.57% YoY.
• Global deposits: ₹9.27 lakh crore, up 13.56% YoY.
• Global advances: ₹7.71 lakh crore, up 15.82% YoY.
• Overseas advances: ₹1.17 lakh crore, up 14.25% YoY.
• Retail advances: up 21.19% YoY.
• MSME advances: up 17.68% YoY.
• Agriculture advances: up 17.60% YoY.
• Corporate advances: up 12.08% YoY.
• Share of RAM (Retail, Agriculture, MSME) Advances: increased to 58.74% of total advances.
Asset Quality and Capital
• Gross NPA Ratio: 1.98% as of 31 March 2026, sharply lower from 3.27% a year earlier.
• Net NPA Ratio: 0.56% as of 31 March 2026 (vs 0.82% a year earlier).
• Provision Coverage Ratio (PCR): 92.94% — one of the higher PCRs among PSU banks.
• FY26 credit cost: 0.48%.
• Capital Adequacy Ratio (CRAR): 18.01% — well above regulatory minimums.
• Domestic CASA Ratio: 37.64% as of March 2026; CASA deposits grew 7.30% YoY to ₹3.54 lakh crore.
Dividend and Shareholder Returns
The Board of Directors recommended a final dividend of ₹4.65 per equity share (46.5% on ₹10 face value) for FY26, subject to shareholder approval at the 30th Annual General Meeting scheduled for 15 June 2026 via video conferencing. The record date for dividend eligibility was fixed as 29 May 2026.
Bank of India Share Price: What Investors Should Know
Bank of India shares trade on both NSE (ticker: BANKINDIA) and BSE (532149). The stock has had a constructive FY26, with the share price hovering around the ₹140 mark in May 2026 following the Q4 results. On the day immediately after results, BOI shares jumped over 4%, reflecting market approval of the asset quality improvement and dividend recommendation.
Key Investor Takeaways
• Highest-ever annual net profit of ₹10,527 crore in FY26 — a 14.19% YoY jump.
• Gross NPA ratio improvement from 3.27% to 1.98% in a single year — one of the sharper PSU bank turnarounds.
• Healthy CRAR of 18.01% with adequate buffer for further loan growth.
• Strong retail and MSME momentum — both growing above 17% YoY.
• Leadership stability after the April 2026 CEO tenure extension.
Brokerages have generally been constructive on BOI, with most maintaining ‘Hold’ or ‘Buy’ ratings based on continued asset quality improvement and the bank’s improving profitability profile. As always with banking stocks, especially YMYL-sensitive ones, share-price targets are opinions, not predictions. Verify the live share price on NSE/BSE, read the bank’s investor presentation, and ideally consult a SEBI-registered advisor before any trade. This article is not investment advice.
Subsidiaries, Joint Ventures and Group Companies
Beyond the bank itself, the BOI Group includes a network of subsidiaries and joint ventures that extend the institution’s reach across geographies and product lines.
• BOI Shareholding Limited — clearing services.
• BOI Mutual Fund (BOI AXA Investment Managers, now BOI Mutual Fund) — asset management.
• BOI Merchant Bankers Limited — investment banking and merchant banking services.
• BOI Star Union Dai-ichi Life Insurance (SUD Life) — joint venture life insurance company with Union Bank of India and Dai-ichi Life of Japan.
• Bank of India (Tanzania) Limited.
• Bank of India (New Zealand) Limited.
• Bank of India (Uganda) Limited.
• Bank of India (Botswana) Limited.
• PT Bank of India Indonesia Tbk — listed on the Indonesian stock exchange.
• Indo Zambia Bank — a joint venture with Indian Bank, Central Bank of India and the Government of Zambia.
• STCI Finance Limited — a NBFC associate of the bank.
• Bank of India branches in Singapore, Hong Kong, Tokyo, London, New York, Paris and several other key global financial centres.
Strengths and Honest Challenges
Where Bank of India Genuinely Shines
• 120 years of operational continuity and one of the most recognised PSU bank brands in India.
• Government ownership of around 73-74% provides implicit sovereign backing for retail customers.
• Genuine international presence across 15 countries — only a handful of Indian PSU banks operate globally at this scale.
• Sharp asset quality improvement in FY26 — Gross NPA down from 3.27% to 1.98% in a year, NNPA down to 0.56%.
• Highest-ever annual profit of ₹10,527 crore in FY26 with healthy 14%+ YoY growth.
• Strong capital position with CRAR at 18.01% — well above regulatory norms.
• Continuity in leadership — Karnatak’s tenure extension till April 2029 provides strategic stability.
• Provision Coverage Ratio at 92.94% — strong buffer against future credit losses.
• Robust digital adoption — 95%+ transactions are digital, 271 lakh+ UPI customers.
• First Indian bank to install an ATM (1989) — historical lead in financial technology adoption.
Where BOI Has Room to Improve
• Net Interest Margin (NIM) remains modest at around 2.55% (global) — below several private bank peers.
• Customer service experience at branch level varies significantly between metros and smaller towns — a persistent PSU bank challenge.
• Premium credit card portfolio and wealth management offerings trail private peers like HDFC, ICICI and Axis.
• Brand visibility in younger urban customer segments lags more aggressive private banks.
• Cost of deposits at 4.85% (Q1 FY26) is on the higher side, weighing on margins.
• CASA ratio at 37.64%, while respectable, has room to improve compared to top PSU peers.
How to Open a Bank of India Account in 2026
Digital (Fastest)
• Download the BOI Mobile (Omni Neo) app from Google Play Store or Apple App Store.
• Select ‘Open Savings Account’ and complete Aadhaar-based Video KYC.
• Submit PAN, Aadhaar, mobile number and complete biometric verification.
• Account is activated within hours, virtual debit card is issued instantly.
• Physical debit card, passbook and welcome kit arrive by post.
In-Branch
• Visit your nearest BOI branch using the locator on bankofindia.bank.in.
• Carry PAN card, Aadhaar (linked to your active mobile number), and recent passport-size photographs.
• Fill the account opening form and submit KYC documents.
• Deposit the minimum balance (zero for PMJDY/BSBDA, low minimums for standard savings accounts).
• Collect your passbook and debit card; register for SMS alerts, Star Connect net banking and BOI Mobile.
Frequently Asked Questions (FAQ)
Q1. Is Bank of India a government bank?
Yes. Bank of India is a public sector bank owned majority by the Government of India (around 73-74% as of recent disclosures). It was nationalised on 19 July 1969 along with 13 other major commercial banks.
Q2. Is Bank of India the same as the Reserve Bank of India?
No. Bank of India is a commercial bank that provides retail, corporate and international banking services. The Reserve Bank of India (RBI) is India’s central bank — the regulator and monetary authority. The two are entirely different institutions, though they are sometimes confused due to their similar names.
Q3. Who is the current MD and CEO of Bank of India?
Shri Rajneesh Karnatak is the current MD & CEO. He took charge on 29 April 2023, and the Government of India extended his tenure for three additional years through April 2029 via gazette notification dated 23 April 2026.
Q4. Where is the headquarters of Bank of India?
Bank of India is headquartered at Star House-I, 8th Floor, C-5, G-Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051.
Q5. Is BOI safe for deposits?
Yes. As a government-owned scheduled commercial bank regulated by the RBI, BOI is among the safest places for deposits in India. All eligible deposits up to ₹5 lakh per depositor are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
Q6. What is the dividend declared by BOI for FY26?
Bank of India has recommended a final dividend of ₹4.65 per equity share (46.5% on ₹10 face value) for FY26, subject to shareholder approval at the 30th AGM scheduled for 15 June 2026 via video conferencing. The record date is 29 May 2026.
Q7. How many branches does Bank of India have?
BOI operates over 5,100 branches across India, supported by a large ATM and Business Correspondent network. Internationally, the bank has operations in 15 countries through branches, subsidiaries and representative offices.
Q8. What was BOI’s net profit in FY26?
Bank of India reported a full-year net profit of ₹10,527 crore for FY26 — its highest-ever annual profit and a 14.19% year-on-year increase from ₹9,215 crore in FY25.
Final Thoughts: Why Bank of India Still Matters in 2026
It is easy to overlook Bank of India in a banking landscape dominated by SBI’s sheer scale, HDFC Bank’s glossy brand, and the relentless digital push of newer private banks. But BOI is one of those quiet institutions that has been part of Indian banking longer than the RBI itself, longer than the country’s independence, and longer than most of its competitors combined. Twelve decades of operation is not a small number.
What makes 2026 a meaningful year for BOI is that the bank has finally turned the corner on several historical pain points. Asset quality has improved sharply. Profitability has scaled to a record high. The leadership team has been given a clear runway through 2029. The international franchise continues to deliver. And the digital story — 95%+ digital transactions, 271 lakh UPI customers — shows that the bank is not standing still while the industry transforms around it.
For an individual customer, BOI offers what most people genuinely need from a bank — a trusted brand with government backing, a wide branch and ATM network, competitive home and personal loans, decent FD returns (especially for senior citizens), and a respectable mobile banking experience. For an investor, the FY26 print and the leadership extension make a constructive case for re-rating, though execution and margin pressure remain watchpoints. Either way, this 120-year-old institution is worth a more thoughtful look than the casual coverage it usually gets. This guide was built to provide exactly that.