- **lead** - Bank of India is fundamentally a deposit-funded lender - it gathers savings from over 102 million customers and channels that money into loans for farmers, small businesses, home buyers, and large corporations, with the government as its majority owner. Founded in 1906 by a group of Mumbai businessmen and nationalised in 1969, it has grown into India’s sixth-largest public sector bank by building a granular retail deposit base and then lending it out across a deliberately diversified set of sectors. The recurring approach is “calibrated credit growth” paired with “quality underwriting” - the bank expands its loan book not by chasing any single hot sector, but by spreading credit across retail, agriculture, MSME, and corporate borrowers while keeping the majority of its funding in stable, low-cost retail deposits. # Business segments Five engines at different stages - a domestic deposit-gathering machine that funds a granular RAM lending core, a large-ticket corporate book, a treasury that manages the gap, and an international network that extends the balance sheet abroad - each built on the same branch infrastructure and government-backed franchise. ## 1. Domestic deposit franchise: the raw material for everything **The bank funds itself overwhelmingly with stable, low-cost retail money - CASA and retail term deposits together make up more than four-fifths of domestic deposits, so it is not at the mercy of wholesale markets.** - **Zonal factories for deposit gathering** - the bank has set up dedicated Zonal Deposit Centres at every Zonal Office with the sole job of accelerating CASA growth and market share, treating deposit mobilisation as a specialised function rather than a branch afterthought. - **Green deposits as a new tap** - the “Harit Jama Yojana” green deposit product is offered through the bank’s digital lending platform, giving environmentally conscious savers a reason to park money with the bank. ## 2. RAM lending: the granular, high-yield core **Retail, agriculture, and MSME loans together form nearly 59% of domestic advances - a deliberate push into smaller-ticket, diversified assets that earn better spreads than large corporate loans.** - **Home loans are the anchor** - at Rs. 79,178 crore, housing finance makes up 49% of the retail book, with the bank partnering with India Mortgage Guarantee Corporation to offer mortgage guarantee-backed loans in the affordable housing segment. - **Agriculture through specialist branches** - 164 Star Krishi Vikas Kendras and 134 Agri Desks serve farmers with Kisan Credit Cards, gold loans, and dairy financing; the bank issued 1.50 lakh Kisan Credit Cards during the year, and the bank financed more than 3.57 lakh women self-help groups. - **MSME lending with dedicated processing factories** - 136 centralised processing centres handle proposals above Rs. 10 lakh, while products like “Star Gig Grow Loan” for gig workers and “Star Digi Biz Loan” for digital working capital target new-economy borrowers that traditional banks often miss. - **Government credit guarantees de-risk the book** - the bank expects to fund roughly Rs. 10,000-12,000 crore under the ECLGS 5.0 scheme, where the government guarantees 100% of the loan for MSME borrowers, so the bank can lend without taking the full credit risk. ## 3. Corporate and infrastructure lending: the large-ticket engine **A Rs. 2.7 lakh crore corporate book spread across infrastructure, NBFCs, and manufacturing - built on a foundation of highly rated borrowers and specialised branch coverage.** - **Infrastructure is the biggest slice** - Rs. 53,392 crore in infrastructure advances, of which power alone accounts for Rs. 34,066 crore, reflecting the bank’s role in financing India’s electricity generation and transmission. - **NBFC lending is heavily prime** - the global NBFC portfolio of Rs. 1,00,055 crore carries a rating profile where 76% is AAA and 19% is AA, meaning the bank lends almost entirely to the safest non-bank finance companies. - **Supply chain finance as a sticky product** - the BOI Trade Easy LMS Platform and a dedicated Supply Chain Finance Cell at Head Office let the bank finance a corporate’s entire vendor ecosystem, not just the corporate itself. ## 4. Treasury: the NIM centre that manages the gap **The treasury is not run as a standalone profit centre but as a “NIM centre” - its job is to manage the bank’s Rs. 2.55 lakh crore investment portfolio, liquidity, and foreign exchange exposure so the lending engines can operate smoothly.** - **Government securities dominate the book** - SLR investments of Rs. 2,08,663 crore, all in government securities, form the bulk of the domestic investment portfolio, providing a liquid, risk-free buffer. - **Duration kept deliberately short** - the M-duration of the SLR available-for-sale portfolio was actively managed down from 1.22 to 0.47 between March 2021 and March 2022, so rising interest rates hurt the bond portfolio less. - **Infrastructure bonds raise long-term money** - the bank raised Rs. 10,000 crore through infrastructure bonds in December 2025, giving it long-duration funding to match long-duration infrastructure assets. - **PSLC trading turns a regulatory requirement into income** - by trading Priority Sector Lending Certificates, the treasury earned Rs. 253.31 crore in FY26, monetising the bank’s excess priority-sector lending. ## 5. International banking: a 15-country extension of the balance sheet **Overseas branches and subsidiaries contribute 14.36% of global business, with a book split roughly evenly between local lending, India-linked business, and trade finance.** - **The US and UK are the twin pillars** - American operations contribute 31% of overseas advances and the UK 25%, making the two developed-market franchises the dominant profit pools outside India. - **Trade finance is a third of the book** - 34% of overseas advances are trade finance, so the international network doubles as a facilitator of cross-border commerce for Indian companies. # Digital banking and technology platform **A cross-cutting engine that distributes products, automates processes, and feeds data into credit decisions - not a separate business, but the infrastructure every business line runs on.** - **Omni-channel platform as the digital storefront** - the “BOI OMNI NEO” platform integrates mobile and internet banking with the government’s UMANG app, serving 271 lakh UPI users and 131 lakh mobile banking users as of March 2026. - **Digital lending at scale** - 50 products live on the digital lending platform, generating 28.6 lakh loans worth Rs. 1.28 lakh crore in sanctions during FY26, with e-signing and e-documentation cutting out paper. - **Data lakehouse feeds 35 live use-cases** - “Project Star ADITYA” ingests data from over 40 source systems and runs 35 live use-cases across 8 business domains, generating Rs. 11,419 crore in business during FY26. - **Automation that saves people-hours** - 48 processes automated through Intelligent Process Automation have saved more than 68,000 man-hours, while a Resilience Operations Centre monitors 22 critical applications around the clock. - **Early warning system catches stress before it turns bad** - an AI/ML-based Early Warning System flags accounts above Rs. 1 crore, and a dedicated 100-person call centre team makes outbound calls to borrowers showing early signs of missed payments. # Group structure and partners **A web of domestic and overseas subsidiaries, joint ventures, and associates that extends the bank’s reach into insurance, mutual funds, asset reconstruction, and regional rural banking - all anchored by a 73.38% government stake.** - **Life insurance joint venture with Union Bank and Dai-ichi Life** - Star Union Dai-ichi Life Insurance, in which the bank holds 27.48%, gives it a seat at the life insurance table without building a captive insurer from scratch. - **Sponsored regional rural bank in Madhya Pradesh** - following the government’s RRB amalgamation in May 2025, the bank became the sole sponsor of Madhya Pradesh Gramin Bank, with 1,320 branches and a business mix of Rs. 58,931 crore. - **Strategic bets on solar and digital infrastructure** - a 50:50 joint venture between Green Valley Renewables Limited (GVRVL) and Damodar Valley Corporation (DVC) targets 310 MW of solar capacity with the bank committing Rs. 625 crore, while a 5.56% stake in ONDC (the government’s open e-commerce network) positions it for the next wave of digital commerce.