Value Added Product Mix Shift
Expected: CurrentHIGH confidence
What: Global NIM: 2.57%
Impact: +16 bps qoq
“churned our portfolio... replaced with certain advances of AA and other categories whichever giving 20-30-40 basis point higher.”
Bank of India: Stock Analysis & Fundamentals
Data from 5w agoBank of India (Banks - PSU) — fundamental analysis, earnings data, and key metrics. PE: 6.6. ROE: 12.4%. This stock is not currently in the Nifty 500 momentum outperformers list.
Bank of India Key Facts
What's Happening
🌐FII stake increased 1.0% this quarter
Earnings Acceleration Triggers
1. Value Added Product Mix Shift
CurrentHIGH
2. Asset Quality Improvement
CurrentHIGH
3. Order Book Or Contract Wins
Next 6 monthsMEDIUM
Key Risks
1. ECL framework adoption expected to impact CRAR by approximately 1% to 2%
MEDIUM2. Global uncertainty and tensions leading to slowness in international advances
LOW3. Rising gold prices posing valuation risks to the gold loan portfolio
LOWSector-Specific Signals
Net Interest Margin (Global)2.57%
Gross NPA Ratio2.26%-143 bps
Net NPA Ratio0.60%-25 bps
CASA Ratio37.97%
Key Numbers
Current Price
₹148
Dividend Yield
2.74%
Market Cap
67.3K Cr
Valuation
N/AWhy Are Bank of India's Earnings Accelerating?
Based on Q3 FY26 earnings • Updated Apr 18, 2026
Asset Quality Improvement
Expected: CurrentHIGH confidence
What: Net NPA Ratio: 0.60%
Impact: -25 bps yoy
“Net NPA ratio also improved by 25 bps on YoY basis to 0.60% for Q3FY26.”
Order Book Or Contract Wins
Expected: Next 6 monthsMEDIUM confidence
What: Corporate Pipeline: ₹65,000 crore
“Corporate pipeline is around Rs.65,000 crore which will help us to grow the credit in the Q4 and the Q1 in the next financial year.”
Global NIM improved to 2.57%
HIGH confidence
What: Global NIM improved to 2.57%
“Global NIM sequentially has improved by 16 Bps and stood at 2.57% in Q3FY26.”
Global Advances Growth guidance raised
HIGH confidence
What: 12-13% → 13-14%
“the guidance for global advances growth will be around 13-14%”
What Are the Key Risks for Bank of India?
Earnings deceleration risks from management commentary
ECL framework adoption expected to impact CRAR by approximately 1% to 2%
MEDIUMTrigger: New RBI draft guidelines require higher provisioning based on expected credit losses.
Impact: PAT impact: ₹4,700 crore hit to capital
Management view: Impact will be spread over five years (0.40% per annum), which is manageable given ₹10,000 crore annual profit.
Monitor: regulatory
Global uncertainty and tensions leading to slowness in international advances
LOWTrigger: Management is being watchful and cautious about entering new overseas accounts due to political issues.
Management view: Focusing on domestic credit growth and being very watchful of overseas corporates.
Monitor: geopolitical
Rising gold prices posing valuation risks to the gold loan portfolio
LOWTrigger: Metal price volatility could lead to higher LTVs if prices correct sharply.
Management view: Reduced Loan-to-Value (LTV) ratio to 75% for fresh advances to create a 25% margin buffer.
Monitor: commodity
What Is Bank of India's Management Saying?
Key quotes from recent conference calls
“the guidance for global advances growth will be around 12-13% and the global deposit growth will be around 10-11% for FY26. [Previous Global Advances Growth guidance]”
“we are giving a guidance of around 0.90% of ROA for FY26. [Previous Return on Assets (ROA) guidance]”
“our total business should be at around Rs.31 Lac crore; Within that number... the RAM book should be at around 65 % [Initiative: BOI at 125 Strategy]”
“we feel that the ECL impact should be at around 2 % on our CRAR... translates to around Rs. 4,600 to Rs.4,700 crores. [Risk (regulatory): MEDIUM]”
What Did Bank of India Report This Quarter?
Headline numbers from the latest earnings call
Revenue
₹6,461 crore
YoY +6%
Why: Growth in Net Interest Income was driven by a sequential improvement in Global NIM by 16 basis points to 2.57%.
NII growth was supported by a conscious strategy to churn the portfolio towards better-yielding advances.
EBITDA
₹4,193 crore
YoY +13%
Why: Operating profit growth was driven by a 30% YoY increase in non-interest income and improved margins.
Non-interest income stood at ₹2,279 crore, showing strong traction in fee-based activities.
PAT
₹2,705 crore
YoY +7%QoQ +5.8%
Why: Net profit growth was supported by improved asset quality and a reduction in credit costs to 0.34%.
The bank maintained a steady PAT growth despite a one-off corporate slippage during the quarter.
Other Highlights
• Global business grew 12.54% YoY to ₹16,27,602 crore.
• RAM advances increased by 18.05% YoY, now constituting 58.54% of domestic advances.
• Provision Coverage Ratio (PCR) improved to 93.60% in Dec-25.
What Sector Metrics Matter for Bank of India?
Sub-sector-specific signals from the latest concall — each with management's stated reason for the change
Net Interest Margin (Global)
2.57%
QoQ +16 bps
Why: Improvement driven by churning the portfolio from low-yielding AAA PSUs to higher-yielding AA corporates and RAM loans.
Gross NPA Ratio
2.26%
YoY -143 bps
Why: Reduction achieved through strong cash recoveries and controlled slippages.
Net NPA Ratio
0.60%
YoY -25 bps
Why: Improved provisioning and recovery efforts.
CASA Ratio
37.97%
QoQ -142 bps
Why: Structural shift in the economy where depositors are moving idle funds to higher-yielding investment avenues.
Provision Coverage Ratio
93.60%
YoY +112 bps
Why: Management increased provisions to strengthen the balance sheet.
Credit Cost
0.34%
YoY -5 bps
Why: Improved asset quality and lower fresh slippages compared to the previous year.
CRAR
17.09%
YoY +109 bps
Why: Capital position strengthened through internal accruals and profit growth.
Slippage Ratio
0.16%
YoY -3 bps
Why: Better monitoring and prudent credit underwriting.
What Is Bank of India's Management Guidance?
Forward-looking targets from management for FY26
OPM Guidance
2.5%
Capex Plan
₹2000 Cr
Revenue Outlook
₹10,000 crore annual net profit
Margin Outlook
REAFFIRMED
Capex Plan
₹2,000 crore
IT expenditure including digital transformation and cybersecurity.
Volume
RAISED
Management Tone: BULLISH
Guidance Changes
RAISED
Global Advances Growth: 12-13% → 13-14%
The above analysis is parsed from publicly available earnings call transcripts. This is educational research only — not investment advice. Last updated Apr 18, 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%
- Revenue Growth YoY: +4.0%
- Net Interest Margin: 7.00%
- Gross NPA: 2.26%
What is Bank of India's current PE ratio?
Bank of India's current PE ratio is 6.6x.
- Current PE: 6.6x
- Market Cap: 67.3K Cr
- Dividend Yield: 2.74%
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: ₹148
Is Bank of India a fundamentally strong company?
Bank of India's fundamental strength based on key financial ratios
- Return on Equity (ROE): 12.0%
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 2.74%.
- Dividend Yield: 2.74%
- Current Price: ₹148
Who holds Bank of India shares — promoters, FII, DII?
Bank of India's shareholding pattern (Mar 2026)
- Promoters: 73.4%
- FII (Foreign): 7.3%
- DII (Domestic): 14.0%
- Public: 5.4%
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% (Mar 2026)
- Previous Quarter: 73.4% (Dec 2025)
- Change: 0.00% (stable)
Is Bank of India a new momentum entry or an established outperformer?
Bank of India is an established outperformer with 1 weeks of consecutive Nifty 500 outperformance.
What are the growth catalysts for Bank of India?
Bank of India has 5 key growth catalysts identified from recent earnings analysis
- Value Added Product Mix Shift — Shedding low-yielding AAA PSU advances for higher-yielding AA corporate and RAM loans.
- Asset Quality Improvement — Strong cash recoveries and controlled slippages in the MSME and Agriculture segments.
- Order Book Or Contract Wins — Pipeline includes in-principle approvals and sanctions moving toward documentation.
- Global NIM improved to 2.57% — Management successfully churned the portfolio by shedding low-yielding AAA PSU advances for higher-yielding AA corporates.
What are the key risks in Bank of India?
Bank of India has 3 key risks worth monitoring
- [MEDIUM] ECL framework adoption expected to impact CRAR by approximately 1% to 2% — New RBI draft guidelines require higher provisioning based on expected credit losses.
- [LOW] Global uncertainty and tensions leading to slowness in international advances — Management is being watchful and cautious about entering new overseas accounts due to political issues.
- [LOW] Rising gold prices posing valuation risks to the gold loan portfolio — Metal price volatility could lead to higher LTVs if prices correct sharply.
What did Bank of India's management say in the latest earnings call?
In Q3 FY26, Bank of India's management highlighted
- "the guidance for global advances growth will be around 12-13% and the global deposit growth will be around 10-11% for FY26. [Previous Global Advances..."
- "we are giving a guidance of around 0.90% of ROA for FY26. [Previous Return on Assets (ROA) guidance]"
- "our total business should be at around Rs.31 Lac crore; Within that number... the RAM book should be at around 65 % [Initiative: BOI at 125 Strategy]"
What is Bank of India's management guidance for growth?
Bank of India's management has provided the following forward guidance for FY26
- Revenue outlook: ₹10,000 crore annual net profit
- OPM guidance: 2.5%
- Capex plan: ₹2000 Cr for IT expenditure including digital transformation and cybersecurity.
- Management tone: bullish
- Milestone: [RAISED] Global Advances Growth: 12-13% → 13-14%
What sector-specific metrics matter most for Bank of India?
Bank of India's most important sub-sector-specific KPIs from the latest concall
- Net Interest Margin (Global): 2.57% (QoQ +16 bps) — Improvement driven by churning the portfolio from low-yielding AAA PSUs to higher-yielding AA corporates and RAM loans.
- Gross NPA Ratio: 2.26% (YoY -143 bps) — Reduction achieved through strong cash recoveries and controlled slippages.
- Net NPA Ratio: 0.60% (YoY -25 bps) — Improved provisioning and recovery efforts.
- CASA Ratio: 37.97% (QoQ -142 bps) — Structural shift in the economy where depositors are moving idle funds to higher-yielding investment avenues.
- Provision Coverage Ratio: 93.60% (YoY +112 bps) — Management increased provisions to strengthen the balance sheet.
- Credit Cost: 0.34% (YoY -5 bps) — Improved asset quality and lower fresh slippages compared to the previous year.
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
- 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)
- Growth catalyst: Value Added Product Mix Shift
Risk Factors (Bear Case)
- Key risk: ECL framework adoption expected to impact CRAR by approximately 1% to 2%
What is the future outlook for Bank of India?
Bank of India's forward outlook based on current data signals
- Key Catalyst: Value Added Product Mix Shift
- Key Risk: ECL framework adoption expected to impact CRAR by approximately 1% to 2%
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.