Bank of India (BoI), a prominent public sector bank with 73.38% government ownership, delivered a solid 82% YoY profit growth in Q4 FY25, powered by treasury gains and healthy loan recoveries. With plans for ~12% loan growth in FY26 and improving asset quality, BoI is trading at just ~0.66× book value—making it one of the most attractively valued PSU banking bets in India.
About the Company
- Bank of India (BoI)
- Established: 1906
- Ownership: 73.38% held by Government of India
- Network: ~5,200 branches, 8,166 ATMs (as of Dec 2024)
- Core Areas: Retail banking, MSME, corporate credit, digital banking
Fundamental Analysis
Bank of India (BoI) Q4 FY25 Financials:
- Net Profit: ₹2,626 Cr (+82% YoY)
- Net Interest Income (NII): ₹6,063 Cr (+2% YoY)
- Other Income: +96% YoY
- Loan Book: ₹9.91 lakh Cr (YoY growth ~10.3%)
- Gross NPA: 3.27% | Net NPA: 0.82%
- Capital Adequacy Ratio (CAR): ~17–18%
Valuation:
- P/E Ratio: ~5.6×
- P/B Ratio: ~0.66–0.69×
- Dividend Yield: ~3.5%
Past Stock Performance
- Current Price (July 2025): ₹113–118
- 52-Week Range: ₹90 – ₹130
- 1-Year Return: ~–1%
- 5-Year Return: ~+133%
Bank of India (BoI) Share Price Target Forecast (2025–2050)
| Year | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| 2025 | 110 | 126 |
| 2026 | 130 | 150 |
| 2027 | 160 | 180 |
| 2028 | 200 | 240 |
| 2030 | 300 | 360 |
| 2035 | 500 | 600 |
| 2040 | 800 | 1,200 |
| 2045 | 1,200 | 1,800 |
| 2050 | 1,800 | 2,500 |
These forecasts are based on growth in advances, improved profitability, and long-term PSU banking sector transformation.
Growth Drivers
- Credit Growth Momentum: ~15% YoY loan book growth
- Strong Asset Quality: Net NPA below 1%; PCR ~97%
- Profit Recovery: Boosted by treasury gains and fee income
- Capital Ready: High CAR enables lending without dilution
- Attractive Valuations: Undervalued vs peers; P/B below 0.7×
Expert Views
- Analyst Consensus (12-month): ₹126 average; ₹110–₹139 range
- TradingView Forecast: ₹127 median with a bullish bias
- EPS Growth Outlook: ~10–12% CAGR based on core banking improvements
- Market Sentiment: Strong dividend appeal and balance sheet cleanup in focus
Risks & Challenges
- Shrinking Margins: NIM down to ~2.61%
- Low Valuation Re-Rating: Price may stay stagnant if PSU rerating doesn’t occur
- Credit Risk: MSME/agri segment exposure still volatile
- Global Uncertainty: External shocks could impact earnings & investor appetite
Investment Suitability
Ideal for:
- Value investors
- Long-term PSU sector believers
- Dividend-focused portfolios
Avoid if:
- You seek high-growth, fast-moving stocks
- You rely purely on technical momentum
FAQs
Q1. What is Bank of India’s near-term target?
₹126 is the average analyst forecast over the next 12 months.
Q2. Is BoI’s asset quality improving?
Yes. Net NPA is below 1% with high provision coverage.
Q3. Can it hit ₹2,000+ by 2050?
Yes, provided credit growth, NIM recovery, and PSU sector re-rating persist.
Q4. What’s the dividend like?
At ~3.5%, it’s among the better yields in the PSU space.
Conclusion
Bank of India is a classic value pick in India’s PSU banking basket. Its improving profitability, strong asset metrics, and low valuation multiples suggest solid upside for long-term investors. While short-term growth may be capped, the journey to ₹2,500 by 2050 is achievable if India’s credit growth story holds up.
