NIM expansion from CASA improvement
Expected: Q4 FY26HIGH confidence+₹300 Cr revenue
What: 140 bps CASA improvement driving 10-15 bps NIM expansion
Impact: +₹300 Cr revenue
“Global NIM sequentially improved by 16 bps to 2.57% in Q3 FY26”
Bank of India: Why Is It Outperforming Nifty 500?
ActiveRS +15.3%Strong12w Streak
In Week of Mar 28, 2026, Bank of India (Banks - PSU) is outperforming Nifty 500 with +15.3% relative strength. Fundamentals: Strong. On a 12-week streak.
PB: At PeakEmerging Opportunity
What's Happening
⏳Steady earner with flat PB — waiting for re-rate catalyst
🌐FII stake increased 1.0% this quarter
🏦GNPA at 2.26% and improving — strong asset quality
💰Trading 57% below estimated fair value — significant discount
Earnings Acceleration Triggers
1. NIM expansion from CASA improvement
Q4 FY26HIGH
2. Credit cost reduction to 0.75%
Q4 FY26MEDIUM
Key Risks
1. Competitive deposit pricing pressure
MEDIUM2. Legacy asset quality stress
MEDIUMKey Numbers
PAT Growth YoY
+7%
Stable
Revenue YoY
+4%
Decelerating
GNPA
2.26%
Improving
Price to Book
0.8
PEG Ratio
0.21
Current Price
₹145
Dividend Yield
2.79%
Fundamental Score
60/100
Strong
3Y PAT CAGR
+40%
Market Cap
66.0K Cr
Valuation
Significantly Undervalued12-Week Performance
Weekly presence in the outperformers list. Green = beating Nifty 500 by 10%+ that week.
12 weeks agoThis week
Why Are Bank of India's Earnings Accelerating?
Based on Q3 FY26 (December 31, 2025) earnings • Updated Feb 22, 2026
Credit cost reduction to 0.75%
Expected: Q4 FY26MEDIUM confidence+₹75 Cr revenue
What: Asset quality improvement reducing provisioning needs
Impact: +₹75 Cr revenue
“Management guidance to reduce credit cost to 0.75% by year-end”
What Are the Key Risks for Bank of India?
Earnings deceleration risks from management commentary
Competitive deposit pricing pressure
MEDIUMTrigger: Deposit rate wars among PSU banks
Impact: -5 bps margin impact
Management view: Focus on mobilizing low-cost deposits in competitive environment
Monitor: CASA ratio trend
Legacy asset quality stress
MEDIUMTrigger: Deterioration in above 5 crore SMA accounts
Impact: -15 bps margin impact
Management view: Stress largely contained in legacy accounts
Monitor: Fresh slippages
What Is Bank of India's Management Saying?
Key quotes from recent conference calls
“Global NIM sequentially has improved by 16 basis points and stood at 2.57% in Q3 FY26 — Shri Rajneesh Karnatak”
“Gross NPA ratio at 2.26% and Net NPA ratio at 0.60% — Shri Rajneesh Karnatak”
“We expect global advances growth of 13-14% and global deposit growth of 11-12% for FY26 — Shri Rajneesh Karnatak”
“Provision coverage ratio at 73.5%... Well above regulatory minimum with CAR at 14.8% — CFO”
What Is Bank of India's Management Guidance?
Forward-looking targets from management for FY26
Revenue Growth Target
13.5%
Implied PAT Growth
17.5%
Credit Growth Target
13.5%
NIM Guidance
2.6%
Management Tone: CAUTIOUS
Key Milestones
• 13-14% loan growth
• 11-12% deposit growth
• 0.75% credit cost
How Fast Is Bank of India Growing?
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +4% | +23% | Decelerating |
| PAT (Net Profit) | +7% | +40% | Stable |
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Other Top Banks - PSU Stocks Beating Nifty 500
Frequently Asked Questions: Bank of India
Based on publicly available financial data. This is educational research, not investment advice.
What were Bank of India's latest quarterly results?
Bank of India's latest quarterly results (Dec 2025) show
- PAT Growth YoY: +6.7% (stable)
- Revenue Growth YoY: +4.0%
- Net Interest Margin: 7.00%
- Gross NPA: 2.26%
Is Bank of India's profit growing or declining?
Bank of India's profit is growing with an stable trend.
- PAT Growth YoY: +6.7% (latest quarter)
- PAT Growth QoQ: +9.2% (sequential)
- 3-Year PAT CAGR: +39.9%
- Trend: Stable — consistent growth pattern
What is Bank of India's revenue growth trend?
Bank of India's revenue growth trend is decelerating.
- Revenue Growth YoY: +4.0%
- Revenue Growth QoQ: +2.9% (sequential)
- 3-Year Revenue CAGR: +23.0%
What is Bank of India's asset quality trend?
Bank of India's asset quality trend is improving.
- Gross NPA: 2.26%
- Net NPA: 0.60%
- GNPA Change YoY: -1.4% bps
What is Bank of India's 3-year profit and revenue CAGR?
Bank of India's long-term compounding rates
- 3-Year Profit CAGR: +39.9%
- 3-Year Revenue CAGR: +23.0%
Is Bank of India's growth accelerating or decelerating?
Bank of India's earnings growth is stable with mixed signals on a sequential basis.
- YoY Acceleration: +0.3% bps
- Sequential Acceleration: -31.5% bps
What is Bank of India's trailing twelve month (TTM) performance?
Bank of India's trailing twelve month (TTM) performance
- TTM PAT: ₹10,000 Cr
- TTM PAT Growth: +15.2% YoY
- TTM Revenue: ₹75,000 Cr
- TTM Revenue Growth: +7.9% YoY
Is Bank of India overvalued or undervalued?
Bank of India appears significantly undervalued based on our fair value analysis.
- Valuation Signal: Significantly Undervalued
- Current PE: 6.5x
- Price-to-Book: 0.8x
What is Bank of India's current PE ratio?
Bank of India's current PE ratio is 6.5x.
- Current PE: 6.5x
- Market Cap: 66.0K Cr
- Dividend Yield: 2.79%
How does Bank of India's valuation compare to its history?
Bank of India's current PE is 6.5x.
- Current PE: 6.5x
- Valuation Assessment: Significantly Undervalued
What is Bank of India's price-to-book ratio?
Bank of India's price-to-book ratio is 0.8x.
- Price-to-Book (P/B): 0.8x
- Book Value per Share: ₹190
- Current Price: ₹145
Is Bank of India a fundamentally strong company?
Bank of India is rated Strong with a fundamental score of 60.46/100. This score is calculated from objective financial metrics
- PAT Growth YoY: +6.7% (20% weight)
- PAT Growth QoQ: +9.2% (15% weight)
- Earnings trend: stable (5% weight)
- Price-to-Book: 0.9x vs sector median (27.5% weight)
- PEG Ratio: 0.2x vs sector median (27.5% weight)
Is Bank of India debt free?
Bank of India has a debt-to-equity ratio of N/A.
- Total Debt: ₹1.2 Lakh Cr
What is Bank of India's return on equity (ROE) and ROCE?
Bank of India's return ratios over recent years
- FY2023: ROE 6.0%
- FY2024: ROE 10.0%
- FY2025: ROE 12.0%
Is Bank of India's cash flow positive?
Bank of India's operating cash flow is positive (FY2025).
- Cash from Operations (CFO): ₹19,000 Cr
- Free Cash Flow (FCF): ₹18,000 Cr
- CFO/PAT Ratio: 194% (strong cash conversion)
What is Bank of India's dividend yield?
Bank of India's current dividend yield is 2.79%.
- Dividend Yield: 2.79%
- Current Price: ₹145
Who holds Bank of India shares — promoters, FII, DII?
Bank of India's shareholding pattern (Dec 2025)
- Promoters: 73.4%
- FII (Foreign): 5.8%
- DII (Domestic): 15.2%
- Public: 5.6%
Is promoter holding increasing or decreasing in Bank of India?
Bank of India's promoter holding has remained stable recently.
- Current Promoter Holding: 73.4% (Dec 2025)
- Previous Quarter: 73.4% (Sep 2025)
- Change: 0.00% (stable)
How long has Bank of India been outperforming Nifty 500?
Bank of India has been outperforming Nifty 500 for 12 consecutive weeks, indicating strong sustained outperformance.
Is Bank of India a new momentum entry or an established outperformer?
Bank of India is an established outperformer with 12 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Bank of India?
Bank of India has 2 key growth catalysts identified from recent earnings analysis
- NIM expansion from CASA improvement
- Credit cost reduction to 0.75%
What are the key risks in Bank of India?
Bank of India has 2 key risks worth monitoring
- Competitive deposit pricing pressure
- Legacy asset quality stress
What did Bank of India's management say in the latest earnings call?
In Q3 FY26 (December 31, 2025), Bank of India's management highlighted
- "Global NIM sequentially has improved by 16 basis points and stood at 2.57% in Q3 FY26 — Shri Rajneesh Karnatak"
- "Gross NPA ratio at 2.26% and Net NPA ratio at 0.60% — Shri Rajneesh Karnatak"
- "We expect global advances growth of 13-14% and global deposit growth of 11-12% for FY26 — Shri Rajneesh Karnatak"
What is Bank of India's management guidance for growth?
Bank of India's management has provided the following forward guidance for FY26
- Revenue growth target: 13.5%
- Implied PAT growth: 17.5%
- Credit growth target: 13.5%
- Management tone: cautious
- Milestone: 13-14% loan growth
- Milestone: 11-12% deposit growth
Is Bank of India worth studying for long term investment?
Based on quantitative research signals, here is why Bank of India may be worth studying
- Earnings growing at +6.7% YoY
- Valuation: appears significantly undervalued
- Cash flow is positive — CFO ₹19,000 Cr
What is the investment thesis for Bank of India?
Bank of India investment thesis summary:
Research Signals (Bull Case)
- Appears significantly undervalued
- Growth catalyst: NIM expansion from CASA improvement
Risk Factors (Bear Case)
- Key risk: Competitive deposit pricing pressure
What is the future outlook for Bank of India?
Bank of India's forward outlook based on current data signals
- Earnings Trend: stable
- Revenue Trend: decelerating
- Valuation: Significantly Undervalued
- Key Catalyst: NIM expansion from CASA improvement
- Key Risk: Competitive deposit pricing pressure
The above FAQs are generated from publicly available earnings data and conference call transcripts. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.