Bank of India
Bank of India
Financial Services F&OBank of India is an India-based bank. The Bank's segments include Treasury Operations, Wholesale Banking and Retail Banking. The Treasury operations segment includes the entire investment portfolio, which is dealing in government and other securities, money market operations and foreign exchange operations.(Source : Company Web-site )
Bank of India trades at an attractive P/E of 6.5x and P/B of 0.82x with strong 5-year profit CAGR of 39%, but elevated contingent liabilities of Rs.6,93,361 Cr, low interest coverage, and modest ROE of 12% limit upside conviction. The stock offers deep value characteristics but asset quality and capital efficiency concerns warrant caution.
Key Fundamentals
MidcapPublic Sector BankBanksTechnical Indicators
Key Insights
Strengths
4- Stock is trading at 0.73 times its book value
- Stock is providing a good dividend yield of 3.23%.
- Company has delivered good profit growth of 39.2% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 19.8%
Weaknesses
4- Company has low interest coverage ratio.
- Company has a low return on equity of 11.7% over last 3 years.
- Contingent liabilities of Rs.6,93,361 Cr.
- Company might be capitalizing the interest cost
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoBank of India trades at an attractive P/E of 6.5x and P/B of 0.82x with strong 5-year profit CAGR of 39%, but elevated contingent liabilities of Rs.6,93,361 Cr, low interest coverage, and modest ROE of 12% limit upside conviction. The stock offers deep value characteristics but asset quality and capital efficiency concerns warrant caution.
- Stock trades at P/E of just 6.5x, significantly below banking sector average of 12-15x, indicating deep value
- Price-to-book of 0.82x (trading below book value at 0.74x) offers margin of safety for value investors
- Compounded profit growth of 39% CAGR over 5 years demonstrates strong earnings recovery trajectory
- Dividend yield of 3.15% is attractive compared to most banking peers and provides income cushion
- Stock CAGR of 30% over 1 year shows strong price momentum and improving market sentiment
- 3-year compounded sales growth of 16% indicates healthy loan book expansion and revenue diversification
- ROE has improved from 3% over 10 years to 12% in the last year, signaling operational turnaround
- Market cap of Rs.66,565 Cr with consistent dividend payout of 19.8% reflects stable capital return policy
- Contingent liabilities of Rs.6,93,361 Cr are alarmingly high relative to market cap of Rs.66,565 Cr — over 10x ratio
- Low interest coverage ratio signals vulnerability to rate cycle changes and potential stress on margins
- 3-year ROE of only 11.7% is below cost of equity for a PSU bank, indicating inadequate shareholder returns
- 10-year stock CAGR of just 4% shows prolonged underperformance and history of value destruction
- 10-year compounded profit growth of only 14% masks years of losses and NPA-driven write-offs
- Company might be capitalizing interest cost, raising concerns about true asset quality and earnings quality
- Only 4 analyst ratings with 25% recommending sell suggests limited institutional conviction
- TTM sales growth has decelerated to 6% from 16% 3-year CAGR, indicating potential growth slowdown
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Dividend ₹4.65 & new ED appointed Jun 15
Shareholders approved ₹4.65 per share dividend for FY26 and appointed Pramod Kumar Dwivedi as Executive Director at the AGM on June 15, 2026.
- Mumbai hub for partnership financing Jun 8
Bank of India opened a Strategic Business Branch at Nariman Point consolidating co-lending, pool buyouts, TReDS, and supply chain finance under one roof to improve underwriting agility and credit monitoring.
- Multiple investor meetings held Jun 23
Bank of India met DSP Asset Managers (Jun 23), Aditya Birla Capital (Jun 17), Dymon Asia (Jun 12), Millennium Partners (Jun 8), Schonfeld Advisors (Jun 4), Balyasny (Jun 3), Marshall Wace (Jun 1), Ishana Capital (May 25), and will attend BofA India Conference 2026. No UPSI was shared in any meeting.
- Trading window closed for Q1FY27 Jun 23
Bank of India shut its trading window from July 1, 2026 until 48 hours after Q1FY27 results are declared, per SEBI insider trading norms.
- Promoter holds zero encumbrance FY26 Jun 22
The promoter (President of India) did not create any encumbrance on shares during FY 2025-26.
- Saksham Niveshak KYC campaign launched Jun 9
Bank of India launched the Saksham Niveshak campaign for KYC updation and unpaid dividend claims running from April 1 to July 9, 2026.
- CVO & CGM appointments Jun 3
Shri Lalit Taneja was appointed Chief Vigilance Officer effective June 3, 2026, and Shri Vikash Krishna was elevated to Chief General Manager effective June 1, 2026.
TL;DR: Bank of India is showing steady institutional interest with a string of investor meetings and has declared a healthy ₹4.65 dividend for FY26. The new Strategic Business Branch in Mumbai signals a focused push into partnership-led and digital financing verticals. No material headwinds emerged in the period. With Q1FY27 results pending and active investor engagement, the near-term outlook is stable with potential upside from the partnership financing strategy playing out.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 13,548 | 14,442 | 15,062 | 15,319 | 16,250 | 17,046 | 17,466 | 18,317 | 18,479 | 18,467 | 18,521 | 19,052 | 19,573 |
| Expenses | 6,590 | 4,579 | 4,546 | 4,190 | 6,041 | 5,269 | 5,456 | 4,485 | 6,050 | 5,399 | 4,849 | 5,201 | 5,989 |
| Financing Profit | -990 | 1,396 | 1,260 | 1,337 | -33 | 1,084 | 607 | 1,666 | 97 | 747 | 1,142 | 1,346 | 800 |
| Fin. Margin % | -7% | 10% | 8% | 9% | 0% | 6% | 3% | 9% | 1% | 4% | 6% | 7% | 4% |
| Other Income | 3,168 | 1,484 | 1,717 | 1,202 | 1,830 | 1,338 | 2,532 | 1,780 | 3,455 | 1,692 | 2,218 | 2,327 | 3,280 |
| Interest | 7,948 | 8,467 | 9,256 | 9,792 | 10,242 | 10,693 | 11,403 | 12,166 | 12,333 | 12,321 | 12,530 | 12,504 | 12,785 |
| Depreciation | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| PBT | 2,178 | 2,880 | 2,977 | 2,539 | 1,797 | 2,422 | 3,138 | 3,447 | 3,551 | 2,439 | 3,361 | 3,674 | 4,079 |
| Tax % | 36% | 48% | 50% | 25% | 17% | 28% | 24% | 26% | 25% | 28% | 25% | 25% | 25% |
| Net Profit | 1,413 | 1,562 | 1,499 | 1,931 | 1,574 | 1,890 | 2,422 | 2,638 | 2,602 | 1,831 | 2,576 | 2,814 | 3,089 |
| EPS in Rs | 3.44 | 3.81 | 3.65 | 4.24 | 3.46 | 4.15 | 5.32 | 5.79 | 5.72 | 4.02 | 5.66 | 6.18 | 6.78 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 43,685 | 42,093 | 39,585 | 38,313 | 41,005 | 42,591 | 40,854 | 38,281 | 47,932 | 61,073 | 71,308 | 75,613 |
| Expenses | 13,600 | 19,842 | 21,218 | 24,618 | 26,874 | 26,386 | 17,672 | 16,263 | 21,177 | 18,848 | 20,656 | 20,708 |
| Financing Profit | -2,135 | -7,994 | -9,239 | -13,984 | -13,076 | -10,987 | -3,239 | -2,065 | -686 | 4,469 | 4,057 | 4,766 |
| Fin. Margin % | -5% | -19% | -23% | -36% | -32% | -26% | -8% | -5% | -1% | 7% | 6% | 6% |
| Other Income | 4,278 | 3,672 | 6,819 | 5,846 | 4,862 | 6,687 | 6,778 | 8,092 | 7,168 | 6,415 | 9,317 | 9,737 |
| Interest | 32,220 | 30,245 | 27,606 | 27,679 | 27,207 | 27,191 | 26,421 | 24,083 | 27,441 | 37,757 | 46,594 | 50,139 |
| Depreciation | 291 | 290 | -7 | 522 | 373 | 392 | 380 | 372 | 427 | 509 | 604 | 731 |
| PBT | 1,852 | -4,612 | -2,412 | -8,660 | -8,587 | -4,692 | 3,160 | 5,655 | 6,056 | 10,375 | 12,771 | 13,773 |
| Tax % | 6% | 37% | -34% | -30% | -37% | -35% | 34% | 38% | 37% | 37% | 25% | 25% |
| Net Profit | 2,015 | -6,276 | -1,492 | -5,982 | -5,426 | -3,051 | 2,081 | 3,487 | 3,839 | 6,567 | 9,552 | 10,309 |
| EPS in Rs | 30.27 | -75.98 | -13.94 | -34.2 | -19.67 | -9.31 | 6.36 | 8.51 | 9.35 | 14.42 | 20.97 | 22.64 |
| Div. Payout % | 17% | 0% | 0% | 0% | 0% | 0% | 0% | 24% | 21% | 19% | 19% | 21% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 666 | 817 | 1,055 | 1,744 | 2,760 | 3,278 | 3,278 | 4,104 | 4,104 | 4,553 | 4,553 | 4,553 |
| Reserves | 31,857 | 32,528 | 32,574 | 35,013 | 44,892 | 41,795 | 46,703 | 52,418 | 56,329 | 66,028 | 76,172 | 85,405 |
| Borrowing | 37,649 | 51,103 | 39,491 | 43,598 | 44,265 | 39,752 | 32,464 | 26,821 | 65,015 | 80,960 | 1,23,869 | 1,18,626 |
| Deposits | 5,36,932 | 5,15,722 | 5,42,352 | 5,22,997 | 5,22,555 | 5,57,386 | 6,29,098 | 6,29,981 | 6,72,194 | 7,40,611 | 8,19,806 | 9,30,973 |
| Other Liabilities | 18,046 | 16,457 | 16,553 | 11,833 | 16,409 | 20,805 | 21,244 | 29,807 | 28,393 | 32,127 | 32,024 | 39,980 |
| Total Liabilities | 6,25,150 | 6,16,628 | 6,32,026 | 6,15,184 | 6,30,881 | 6,63,017 | 7,32,786 | 7,43,131 | 8,26,036 | 9,24,280 | 10,56,425 | 11,79,538 |
| Fixed Assets | 5,802 | 8,382 | 8,349 | 8,192 | 8,799 | 8,765 | 8,637 | 9,570 | 9,950 | 10,178 | 11,865 | 11,670 |
| CWIP | 113 | 191 | 197 | 158 | 200 | 293 | 364 | 286 | 110 | 150 | 182 | 207 |
| Investments | 1,23,196 | 1,22,621 | 1,30,751 | 1,40,321 | 1,50,905 | 1,62,323 | 1,91,693 | 1,80,274 | 2,11,324 | 2,34,592 | 2,68,002 | 2,79,084 |
| Other Assets | 4,96,040 | 4,85,435 | 4,92,729 | 4,66,513 | 4,70,977 | 4,91,636 | 5,32,092 | 5,53,001 | 6,04,652 | 6,79,361 | 7,76,376 | 8,88,577 |
| Total Assets | 6,25,150 | 6,16,628 | 6,32,026 | 6,15,184 | 6,30,881 | 6,63,017 | 7,32,786 | 7,43,131 | 8,26,036 | 9,24,280 | 10,56,425 | 11,79,538 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 14,638 | 18,311 | -6,624 | -7,366 | -9,218 | -4,827 | 37,868 | -35,487 | -7,045 | -4,437 | 18,534 | 4,753 |
| Investing | -755 | -609 | -371 | -260 | 71 | -232 | -182 | -644 | -521 | -991 | -854 | -329 |
| Financing | 1,295 | 4,864 | 3,955 | 7,185 | 7,983 | -3,192 | 2,398 | 1,146 | 541 | 3,868 | 34 | -5,672 |
| Net Cash Flow | 15,179 | 22,566 | -3,040 | -440 | -1,164 | -8,251 | 40,085 | -34,985 | -7,026 | -1,560 | 17,714 | -1,248 |
| Free Cash Flow | 14,066 | 17,814 | -6,910 | -7,620 | -9,090 | -5,184 | 37,538 | -36,035 | -7,569 | -5,264 | 17,861 | 3,907 |
| CFO/OP | 52 | 84 | -42 | -43 | -41 | -24 | 160 | -159 | -28 | -13 | 37 | 9 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE % | 6% | -19% | -4% | -17% | -14% | -7% | 4% | 6% | 6% | 10% | 12% | 12% |
Documents
Frequently Asked Questions about Bank of India
What does Bank of India do?
Where is Bank of India (BANKINDIA) listed?
Which sector does Bank of India belong to?
What is the market capitalisation of Bank of India?
What is the PE ratio of Bank of India?
What is the 52-week high and low of Bank of India?
Does Bank of India pay dividends?
What is the Return on Equity (ROE) of Bank of India?
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Company Information
Bank of India is an India-based bank. The Bank's segments include Treasury Operations, Wholesale Banking and Retail Banking. The Treasury operations segment includes the entire investment portfolio, which is dealing in government and other securities, money market operations and foreign exchange operations.(Source : Company Web-site )