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Mumbai (Maharashtra) [India], May 11 (ANI): The Bank of India (BoI) recently announced its fiscal results ending 2026, mentioning it registered a net profit which surpassed the Rs 10,000 crore mark, and with this bank's CEO and MD, Rajneesh Karnatak, stated that the "Indian economy is doing quite well in spite of global challenges."
In an exclusive interview with ANI, Karnatak outlined the vision of a Bank of India transformed by technology and a domestic economy that remains fundamentally unbowed by global geopolitical headwinds.
The bank's stellar Q4 results were characterised by a 14 per cent growth in global business and a significant 16 per cent surge in domestic credit.
Karnatak attributed this success to a three-year strategic pivot toward Artificial Intelligence and automation.
"The results are a culmination of IT spending that has automated processes and improved operational efficiency," he said, noting that the bank achieved a 1 per cent Return on Assets (ROA) in Q4--a target he aims to maintain through FY27.
Karnatak also offered a bullish reading of the Indian economy. He maintained that the impact on India's fiscal health has been marginal. He acknowledged potential "order two and three" secondary impacts in the coming months but expressed confidence that the resolution would arrive by early next quarter.
"The economy is doing quite well in spite of global challenges," Karnatak stated. This resilience is mirrored in the bank's asset quality, with Gross NPAs dropping to 1.98 per cent and credit costs falling to a lean 0.48 per cent.
Addressing the Reserve Bank of India's (RBI) decision to maintain the status quo on repo rates, Karnatak emphasised the stability of the Indian Rupee.
He noted that while global currencies have faltered against the dollar, the Rupee's depreciation has been contained, bolstered by the RBI's timely interventions.
Regarding international risks, the CEO downplayed exposure to the Gulf region, which constitutes only 5 per cent of BoI's global book. Instead, the bank remains focused on its primary hubs in the US, UK, and Japan, leveraging its strong domestic credit growth, which outpaced the industry average, to fuel future expansion.
As the bank enters FY27, the focus remains on sustaining profitability through technological superiority. For investors and analysts, BoI's results serve as a barometer for an Indian banking sector that is increasingly decoupled from global fragility, driven instead by internal efficiency and robust domestic demand. (ANI)