# Bank of India forecasts NIM rise to 2.55% in H2 FY27 post RBI rate hike

> Bank of India predicts net interest margin will climb to 2.55% in second half of FY27 after RBI rate hike.
- Title: Bank of India forecasts NIM rise to 2.55% in H2 FY27 post RBI…
- Summary: Bank of India predicts net interest margin will climb to 2.55% in second half of FY27 after RBI rate hike. Bank of India expects its net interest margin to…
- Keywords: bank of india, nim, rbi, fy27, rate hike, net interest margin, global advances, fcnr(b) deposits, news, india, Bank, forecasts
- Source: mint — https://livemint.com/industry/banking/bank-of-india-expects-nim-to-rise-to-2-55-in-h2-fy27-after-rbi-rate-hike-11792763396749.html
- Author: Samriddhi Mahar
- Published: 2026-10-23T17:56:12+00:00
- Read time: 1 min
- Topics: bank of india, nim, rbi, fy27, rate hike, net interest margin, global advances, fcnr(b) deposits, news, india
## Bank of India NIM forecast
Bank of India expects net interest margin to rise to 2.55% in H2 FY27 after RBI rate hike.

> Bank of India expects margins to improve in H2 FY27 as faster loan repricing offsets slower deposit-cost increases, while strong FCNR(B) inflows boost liquidity but weigh on near-term NIMs.
## NIM definition
NIM measures the difference between interest earned on loans and what banks pay on deposits.
## RBI rate hike impact
66% of Bank of India's advances linked to external benchmarks allow immediate rate pass-through.
## Deposit repricing
Deposit rates reprice slowly with 60% of term deposits in 12-18 month maturity buckets.
## FCNR(B) deposits
Bank mobilised $2.2 billion in FCNR(B) deposits, equivalent to ₹21,000-22,000 crore.
## FCNR(B) leverage
80-90% of FCNR(B) deposits came through leveraged route with up to 9x leverage.
## NIM performance
Global NIM stood at 2.47% in September quarter, up from 2.41% a year earlier.
## Key takeaway

Bank of India expects its net interest margin to rise to 2.55% in H2 FY27 due to faster loan repricing following RBI's 25-basis-point rate hike.