Bank Of India To See 10-12 Bps NIM Improvement Because Of Rate Hikes, Says MD Rajneesh Karnatak
CNBC-TV18 · 26 Oct 2026 · 11 min
Management interview of Bank of India (BANKINDIA), with 14 key numbers discussed.
- Rajneesh Karnatak, MD & CEO, Bank of India
Bank of India expects a 10-12 bps expansion in domestic NIM in Q3 following the RBI's 25 bps repo rate hike, as 63% of its loan book is repo-linked, although rising deposit costs will partly offset gains. Management targets approaching a 3% global NIM over the next 2-3 years, supported by higher-yielding MCLR and mid-corporate advances alongside lower deposit costs. Asset quality improved significantly, with overall SMA balances reducing to Rs 24bn (0.3% of the standard book). For the full year, the bank revised deposit growth guidance to 16-17% and advances growth to 15-16% on an annualized basis.