Current Rating Overview
On 23 October 2025, MarketsMOJO assigned Bank Of India a 'Buy' rating, adjusting its previous 'Strong Buy' grade. This change was accompanied by a slight decrease in the Mojo Score from 81 to 78, reflecting a nuanced view of the stock’s prospects. The 'Buy' rating indicates that the stock is expected to deliver favourable returns relative to the market, supported by solid fundamentals and positive technical indicators. Investors should understand that this rating is a balanced endorsement, signalling confidence in the bank’s growth potential while recognising certain valuation or trend considerations.
Here’s How Bank Of India Looks Today
As of 20 January 2026, Bank Of India presents a compelling investment case grounded in four key parameters: Quality, Valuation, Financial Trend, and Technicals. These factors collectively underpin the current 'Buy' rating and offer a comprehensive picture of the bank’s standing in the public sector banking space.
Quality Assessment
The bank’s quality grade is rated as 'good', reflecting robust operational and credit fundamentals. A standout metric is the Gross Non-Performing Assets (NPA) ratio, which currently stands at a low 2.54%. This figure indicates prudent lending practices and effective risk management, crucial for a public sector bank operating in a competitive environment. Furthermore, Bank Of India has demonstrated consistent profitability, declaring positive results for 17 consecutive quarters, which underscores its resilience and steady earnings generation capability.
Valuation Perspective
Bank Of India’s valuation is considered 'attractive' at present. The stock trades at a Price to Book Value (P/BV) of 0.9, suggesting it is reasonably priced relative to its net asset value. This valuation is particularly notable given the bank’s Return on Assets (ROA) of 0.9%, which signals efficient utilisation of its asset base to generate profits. Compared to peers and historical averages, the current valuation offers investors a fair entry point, balancing growth expectations with risk considerations. Additionally, the company’s Price/Earnings to Growth (PEG) ratio is a modest 0.2, indicating that earnings growth is not fully priced into the stock, which may appeal to growth-oriented investors.
Financial Trend Analysis
The financial trend for Bank Of India remains positive, supported by impressive growth rates and strong earnings momentum. The bank’s net profit has grown at a compound annual growth rate (CAGR) of 46.49%, a remarkable achievement signalling robust expansion and operational efficiency. For the nine months ended recently, the Profit After Tax (PAT) reached ₹7,432.60 crores, reflecting a year-on-year growth of 34.76%. Interest earned during the latest quarter hit a record high of ₹18,406.09 crores, further evidencing the bank’s ability to generate income from its core lending activities. These figures highlight a sustained upward trajectory in financial performance, reinforcing the stock’s appeal.
Technical Outlook
From a technical standpoint, Bank Of India is rated as 'bullish'. The stock has delivered strong returns over multiple time frames, including a 58.82% gain over the past year and a 40.34% increase over six months. Shorter-term trends are also positive, with a 12.42% gain year-to-date and a 24.55% rise over three months. Despite a minor 0.86% decline on the most recent trading day, the overall momentum remains upward, supported by healthy volume and market interest. This technical strength complements the fundamental backdrop, suggesting continued investor confidence and potential for further price appreciation.
Investment Implications
For investors, the 'Buy' rating on Bank Of India signals a favourable risk-reward profile. The bank’s strong credit quality, attractive valuation, positive financial trends, and bullish technical indicators collectively suggest that the stock is well-positioned to deliver solid returns. While the rating is slightly more conservative than the previous 'Strong Buy', it reflects a prudent assessment of current market conditions and company fundamentals. Investors should consider this rating as an endorsement to accumulate or hold the stock, particularly within a diversified portfolio focused on midcap public sector banks.
Sector and Market Context
Operating within the public sector banking sector, Bank Of India benefits from government backing and a broad customer base. The midcap market capitalisation places it in a dynamic segment of the Indian banking industry, where growth opportunities coexist with regulatory and economic challenges. The bank’s consistent performance and improving asset quality distinguish it from some peers, making it a noteworthy candidate for investors seeking exposure to the sector’s recovery and expansion.
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Summary of Key Metrics as of 20 January 2026
Bank Of India’s stock returns over various periods illustrate its strong market performance: a 1-day decline of 0.86%, but gains of 9.52% over one week, 12.85% over one month, 24.55% over three months, 40.34% over six months, and an impressive 58.82% over the past year. These returns are supported by fundamental strength, including a Gross NPA ratio of 2.54%, a PAT growth of 34.76% for the latest nine months, and record quarterly interest earned of ₹18,406.09 crores. The bank’s consistent positive quarterly results and strong lending practices further reinforce its investment case.
What This Means for Investors
Investors looking to capitalise on the growth potential of public sector banks should consider Bank Of India’s current 'Buy' rating as a signal of confidence from MarketsMOJO. The rating reflects a balanced view that combines solid quality, attractive valuation, positive financial trends, and bullish technical momentum. While the stock is not rated 'Strong Buy' at present, the 'Buy' grade still indicates a favourable outlook and suggests that the stock is a worthy addition to portfolios seeking midcap banking exposure with growth and stability.
Conclusion
In conclusion, Bank Of India’s current 'Buy' rating by MarketsMOJO, last updated on 23 October 2025, is supported by a comprehensive analysis of the bank’s quality, valuation, financial trends, and technical indicators as of 20 January 2026. The stock’s attractive valuation, strong asset quality, consistent profit growth, and positive market momentum make it a compelling choice for investors seeking exposure to the public sector banking sector. As always, investors should consider their individual risk tolerance and investment horizon when evaluating this recommendation.
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