Your Bank's Board of Directors have the pleasure of presenting
the Bank's Annual Report on its Business and Operations along
with the audited Balance Sheet, Profit & Loss Account for the year
ended March 31,2026.

1. Performance Indicators

Domestic Business:

• Domestic Business of the Bank registered a growth
of YoY 15.10% to reach '14.55 lakh crore as on

31.03.2026 as against '12.64 lakh crore as on

31.03.2025.

• Current Account and Savings Account (CASA)
Deposits increased YoY by 7.29% and stood at ' 3.01
lakh crore as on 31.03.2026 and CASA Ratio stood at
37.64%.

• Total Domestic Deposits grew by 14.30% YoY to reach
' 8 lakh crore as on 31.03.2026 as against ' 7 lakh
crore as on 31.03.2025.

• Gross Domestic Advances registered growth of
16.10% YoY, reached ' 6.54 lakh crore as on

31.03.2026 from ' 5.64 lakh crore as on 31.03.2025.

• Share of Retail, Agriculture and MSME (RAM)
Advances, with an outstanding of ' 3.84 lakh crore,
stood at 58.74% of total advances as on 31.03.2026,
compared to 57.26% as on 31.03.2025.

• Priority Sector Lending constituted 46.36% of Adjusted
Net Bank Credit against regulatory threshold of 40%.

• Share of Agricultural Credit to Adjusted Net Bank
Credit was 19.56% as on 31.03.2026, against the
regulatory requirement of 18%.

• Retail Credit grew by 21.19% YoY from ' 1.34 lakh
crore as on 31.03.2025 to ' 1.62 lakh crore as on

31.03.2026.

• MSME Credit registered growth of 17.68% from
' 0.91 lakh crore as on 31.03.2025 to ' 1.07 lakh crore
as on 31.03.2026.

• The Domestic CD Ratio stood at 81.74% as on

31.03.2026.

International Business:

• Overseas Business has increased by 11.51% and
reached at ' 2.44 lakh crore as on 31.03.2026 from '
2.19 lakh crore as on 31.03.2025.

• Gross International Advances increased by 14.25%
and reached at ' 1.17 lakh crore as on 31.03.2026
from ' 1.02 lakh crore as on 31.03.2025.

• Total International Deposits increased by 9.11% and
reached ' 1.27 lakh crore as on 31.03.2026 from '
1.16 lakh crore as on 31.03.2025.

• The International Business of the Bank accounted for
14.36% of its global business as of 31st March 2026.

Global Business:

• Gross Business of the Bank registered a growth
of 14.57% and reached ' 16.98 lakh crore as on

31.03.2026 from ' 14.83 lakh crore as on 31.03.2025.

• Total Deposits increased 13.56% and reached ' 9.27
lakh crore as on 31.03.2026 from ' 8.17 lakh crore as
on 31.03.2025.

• Gross Advances increased by 15.82% and reached
' 7.71 lakh crore as on 31.03.2026 from ' 6.66 lakh
crore as on 31.03.2025.

Financial Parameters:

• Operating Profit increased by 4% YoY and reached '
17,049 crore for FY'26 as against ' 16,412 crore for
FY'25.

• Your Bank has reported Net Profit of ' 10,527 crore in
FY'26 as against ' 9,219 crore in FY'25 exhibiting a
growth of 14% YoY.

• Capital Adequacy Ratio stood at an improved level of
18.01% as on 31.03.2026 as against 17.77% as on

31.03.2025.

• Net Worth increased by 13.96% YoY to ' 75,278
Crore as on 31.03.2026 from ' 66,059 Crore as on

31.03.2025.

• Book Value per share was ' 165.35 as on 31.03.2026.

Asset Quality:

• Gross Non Performing Asset (NPA) - Global declined
by 29.62% YoY from ' 21,749 crore as on 31.03.2025
to ' 15,306 crore as on 31.03.2026.

• Gross NPA Ratio improved to 1.98% as on 31.03.2026
from 3.27% as on 31.03.2025.

• Net NPA declined by 20.68% YoY and stood at
' 4,250 crore as on 31.03.2026 as against ' 5,358
crore as on 31.03.2025.

• Net NPA Ratio improved to 0.56% as on 31.03.2026
from 0.82% as on 31.03.2025.

• Total Special Mention Account (SMA) Portfolio in the
' 5 crore and above bracket declined to ' 4,713 crore
as of 31st March 2026, as against ' 5,921 crore on
31st March 2025.

• SMA Portfolio was 0.62% of the Total Gross Advances
as on 31st March 2026, compared to 0.92% as on
31st March 2025.

• Provision Coverage Ratio (PCR) of your Bank stood at
a healthy 93.57% as of 31st March 2026, as against
92.39% as on 31st March 2025.

The financial performance of the Bank for the year 2025-26 is
summarized below:

Key Financial Ratios are presented below:

2. Capital Raised:

During the financial year 2025-26, Bank has raised:

• ' 2500 crore by way of Tier II bonds (Series XVIII) on

12.12.2025.

3. Funds raised by issuance of long term infrastructure

bonds

• During the FY 2025-26, Bank has raised '10,000
crore by issue of Long Term Infrastructure Bond for a
tenor of 10 years on 26.12.2025.

4. Capital Adequacy:

• As per Basel III Framework, Bank's Capital Adequacy
Ratio was 18.01% as on 31.03.2026, which is higher
than the regulatory requirement of 11.5%.

• Details of Capital Adequacy (Basel III) are as under:

(Amount in 'Crore)

Dividend:

• Your Bank has recommended a dividend of ' 4.65 per
equity share for the financial year 2025-26, amounting
to a total payout of ' 2,116.99 crore.

5. Key Business Initiatives

• During FY26, Your Bank has introduced Bharat
Connect Biller Operating Services, designed to
enhance digital payment capabilities for its corporate
clients. Through this service, eligible corporate clients
can get themselves on boarded as billers on the Bharat
Connect Platform and offer their customers multiple
digital payment options, ensuring wider reach, faster
collections, and improved customer convenience.

• Under the Deen Dayal Jan Awas Yojana - Shehari
(DJAY-S) scheme, the Bank is driving urban growth by
providing loans up to ' 20.00 lakh for JLGs, ' 1.50 lakh
for SHGs and ' 4.00 lakh for individuals, specifically
targeting youth and vulnerable occupational groups.
This initiative features a supportive 5% interest
subvention and CGTMSE cover to ensure affordable,
low risk credit access. By fostering small scale
manufacturing and financial inclusion, the Bank is
committed to building a more resilient and self-reliant
urban economy.

• On the occasion of its 120th Foundation Day,
on 07.09.2026, Your Bank inaugurated 101 new
branches across India, continuing its growth trajectory
of adding a total of 201 new branches during FY26,
bringing the total branch count to over 5,500. With
this, and including the extensive network of ATMs,
Cash Recycler Machines (CRMs) and Business
Correspondents (BCs), Your Bank now has a growing
network of over 38,000 customer touchpoints.

• During FY26, the Bank has launched two key One
Time Settlement (OTS) initiatives: ‘Star Sanjeevani
2025’ for NPA accounts with outstanding up to '

1.00 crore, and ‘BOI OTS 2025’ targeting recoveries
between ' 1.00 crore and ' 50.00 crore. Both the
schemes cover Doubtful, Loss, and Regular Written-
off categories, streamlining debt resolution across its
portfolio.

• In a strategic move to provide better service to
its enterprise partners, Your Bank is doubling its
specialized corporate credit network by opening
10 new Emerging Corporate Credit Branches
(ECCBs), bringing the total to 20 centers nationwide.

• Your Bank has revolutionized Supply Chain Finance
(SCF) with the launch of the BOI Trade Easy (LMS)
Platform. This digital interface offers corporate entities
dashboard access for real time invoice management,
seamless fund transfers, and automated Straight-
Through Processing (STP) for disbursements. By
simplifying dealer-vendor onboarding and utilizing
FIFO-based invoice reconciliation, the Bank is
providing its business partners with an agile,
transparent, and highly efficient tool for liquidity
management.

• The Bank has established the BOI Social Foundation
Trust to undertake, implement and monitor its CSR
initiatives. This non-profit trust will ensure transparent,

structured and sustainable implementation of the
Bank's community and social welfare initiatives.

6. Strategic Initiatives for Combatting Cyber-Enabled

Fraud

• 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.

• 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 immediately debit
frozen subject to Enhance Due Diligence (EDD).
Based on EDD outcomes, appropriate restrictions are
imposed.

• The Bank has integrated Financial Fraud Risk Indicators
(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.

• 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 and supported
by 72 offline RFIs operationalized at branch level.

7. HR Transformation Initiative

• The Bank has expanded its Job Family framework
from 8 to 11 distinct categories, adopting a data-
driven approach to talent allocation. By aligning
roles with employee preferences, qualifications,
and performance, this policy integrates closely with
Learning & Development through specialized training
and Centers of Excellence. This initiative offers greater
career flexibility, ensuring every employee has a clear,
growth-oriented path tailored to their aspirations.

• To enhance customer service across diverse
geographies, the Bank has introduced a voluntary
Regional Language Training Program in

collaboration with CIIL, Mysuru. This initiative
encourages officers of the Bank to master local
languages through a certification process. By bridging
linguistic barriers, the Institution is fostering deeper
community connections and delivering a more
personalized banking experience.

• The Bank has launched a customized certificate
program in Quantitative Finance & Risk Management
(QFRM) in collaboration with the Indian Institute of
Quantitative Finance. This initiative aims to build an
elite pool of experts in advanced quantitative financing
and risk management, ensuring its workforce is
equipped with specialized skills needed for modern
day banking challenges.

• As part of the StarLight Initiative, Bank of India has
launched a new suite of Centers of Excellence (CoEs)
to revamp staff training colleges into modern learning
hubs designed to build future ready skills, boost

professional growth, and foster a learning culture
across the organization.

8. IT Transformation Initiatives

Under Project Star Nextech, the Bank has revamped its IT
vertical to drive digital and technical transformation across
all operations. A key milestone is the creation of the IT
Governance & Excellence Department, aimed at fostering
agility, innovation, and customer-centric approach. This
strategic restructuring aligns its technical capabilities with
global standards, ensuring enhanced collaboration, secure
compliance, and robust talent management for a digital-first
banking future.

9. Awards and Recognition: Unlocking our Potential

• Your Bank has been recognized as the 2nd Best
Top Improver by the IBA at the EASE 7.0 Annual
Citation Ceremony, achieving a remarkable 99.2%
improvement over the baseline in Q4 FY25 and
reaffirming its commitment to the EASENext Strategic
3-Year Roadmap for FY2025-27. Demonstrating
strong performance in technological and operational
development, the Bank also ranked 3rd under the
EASE framework’s Innovation theme during Q3
FY26.

• The Bank received the award for Best Bank for
Promoting Social Schemes under the MSME
Banking Excellence Awards 2025, recognizing
its significant contribution toward promoting and
implementing government backed social schemes
across MSME sector.

• The Bank was awarded the Best Digital Adoption
under CGTMSE during the CGTMSE Silver Jubilee
Awards (2025) for achieving the highest guarantee
coverage through digital mode using API based
processes, which has improved turnaround time.

• The Bank was honored with the SKOCH Gold Award
- MSME Growth (BFSI) in the Gold Category for
BFSI, acknowledging its outstanding performance and
strategic initiatives in expanding MSME financing and
supporting economic development.

• The Bank was recognized as the Winner of APY
Annual Awards by the PFRDA for FY 2024-25 for
achieving 126% of its enrolment target.

• Bank of India was honored for Excellence in AML
Measures at the FinCrime Expert Conclave in
Mumbai, held on September 10, 2025. This recognition
underscores the Institution's continued dedication
to robust compliance frameworks, advanced fraud
prevention, and safeguarding customer information
against financial crime.

10. Advancing Value Creation through Environmental,
Social, and Governance (ESG) Excellence

As a leading financial institution, the Bank is deeply committed
to driving sustainable economic growth and fostering a
resilient future for all our stakeholders. The Bank is actively
integrating Environmental, Social, and Governance (ESG)
criteria into its core lending frameworks and investment
decisions, ensuring that capital is strategically directed
toward businesses that champion green innovation and
social equity.

• Your Bank crossed a total green finance exposure of '

14.000 crore.

• The Bank mobilized ' 930.07 crore in green deposits
during FY26.

• Rooftop solar power was sanctioned for more than

30.000 households.

• Through the Star Energy Saver Scheme, 672 SMEs
received upgrades for energy efficient machinery.

• A sum nearing ' 2,600 crore was sanctioned for
Sustainable Water and Waste Management projects.

• All three Head Office buildings at BKC achieved the
Leadership in Energy and Environmental Design
(LEED) Gold Category Green Building Certification.

• A total of 30 owned administrative and residential
premises were successfully solarized. These
solarization efforts established a total installed
capacity of 630 kW.

• Care Edge-ESG assigned the institution a premier
‘Care Edge ESG-1' rating. This operational excellence
is highlighted by an overall ESG score of 74.5.

• Financial Inclusion reached a milestone of 2.96 crore
PMJDY accounts. Over 21 lakh farmers received
critical support via Kisan Credit Cards (KCC).

• Financing extended to over 3.57 lakh women Self Help
Groups (SHGs) to catalyze economic independence.

• Out of 47 lakh total MUDRA beneficiaries, women
account for 37% of the total.

11. Vision, Strategy and Future Outlook

• Expand the Bank's Retail, Agriculture and MSME
(RAM) lending portfolio by deepening relationships
with our existing customer base while actively
expanding into new customer segments.

• Continue to optimize the funding profile while
leveraging digital onboarding to capture high velocity,
low cost deposits from emerging retail segments.

• Remain committed to fortifying asset quality by
integrating robust assurance functions into credit
lifecycle, utilizing early warning frameworks for
predictive stress detection and compliance audits to
ensure proactive NPA containment and disciplined
NPA management.

• Adopt a multi-pronged approach to increase the
Bank's Corporate Clientele and expand the Mid
Corporate Segment through Emerging Corporate
Credit Branches

• Harness the revamped IT architecture to drive digital
straight-through processing and enhanced cross¬
selling, while strengthening the assurance framework
through rigorous monitoring, secure governance, and
integrated risk management to ensure a seamless
and compliant customer experience..

12. Directors’ Responsibility Statement

The Directors confirm that in the preparation of the annual

accounts for the year ended March 31,2026:

a) The applicable accounting standards have been
followed along with proper explanation relating to
material departures, if any,

b) The accounting policies framed in accordance with
the guidelines of the Reserve Bank of India were
consistently applied. Reasonable and prudent
judgements and estimates were made so as to give
a true and fair view of the state of affairs of the Bank
and for preventing and detecting fraud and other
irregularities,

c) Proper and sufficient care for the maintenance of
adequate accounting records in accordance with
the provisions of applicable laws governing banks in
India for safeguarding the assets of the Bank and for
preventing and detecting fraud and other irregularities,

d) Annual accounts have been prepared on a going
concern basis,

e) Internal financial controls system to be followed by the
Bank were laid down and that such internal financial
controls are adequate and were operating effectively,

f) Proper systems have been devised to ensure
compliance with the provisions of all applicable laws
and that such systems were adequate and operating
effectively.