Current Rating and Its Significance
MarketsMOJO’s 'Buy' rating for Bank Of India indicates a positive outlook on the stock, suggesting it is expected to outperform the broader market over the medium term. This rating reflects a balanced assessment of the bank’s quality, valuation, financial trends, and technical indicators. Investors should view this as a recommendation to consider adding or holding the stock in their portfolios, based on its current fundamentals and market positioning.
Quality Assessment
As of 28 December 2025, Bank Of India demonstrates strong operational quality. The bank maintains a low Gross Non-Performing Assets (NPA) ratio of 2.54%, signalling prudent lending practices and effective risk management. This low level of stressed assets is a key indicator of asset quality, especially within the public sector banking space where NPAs can often be elevated. Furthermore, the bank has reported positive results for 17 consecutive quarters, underscoring consistent profitability and operational stability.
The bank’s long-term fundamental strength is evident in its impressive compound annual growth rate (CAGR) of 46.49% in net profits, reflecting robust earnings growth over recent years. This sustained growth trajectory highlights the bank’s ability to expand its core business and improve profitability despite challenging macroeconomic conditions.
Valuation Perspective
Bank Of India’s valuation remains attractive as of 28 December 2025. The stock trades at a price-to-book (P/B) ratio of 0.8, which is below the average for its peer group, suggesting it is reasonably priced relative to its net asset value. This valuation metric indicates that the market currently values the bank’s assets conservatively, potentially offering a margin of safety for investors.
Additionally, the bank’s return on assets (ROA) stands at 0.9%, which, combined with its valuation, points to an efficient utilisation of assets to generate profits. The price/earnings to growth (PEG) ratio of 0.2 further supports the view that the stock is undervalued relative to its earnings growth potential, making it an appealing option for value-oriented investors.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend and Profitability
The latest data as of 28 December 2025 shows Bank Of India’s financial trend remains positive. The bank’s profit after tax (PAT) for the first nine months stands at ₹7,432.60 crores, reflecting a year-on-year growth of 34.76%. This strong profit growth is supported by the highest quarterly interest earned figure of ₹18,406.09 crores, indicating healthy core income generation.
Such consistent profitability and revenue growth over multiple quarters demonstrate the bank’s ability to capitalise on lending opportunities and manage costs effectively. This financial momentum is a key factor underpinning the 'Buy' rating, as it suggests the bank is well-positioned to sustain earnings growth in the near term.
Technical Outlook
From a technical perspective, Bank Of India exhibits a bullish trend as of 28 December 2025. The stock has delivered a year-to-date (YTD) return of 37.01% and a one-year return of 35.55%, outperforming many peers in the public sector banking segment. Over the past three months, the stock has gained 20.22%, reflecting strong investor interest and positive market sentiment.
Despite some short-term volatility, including a 6.08% decline over the past month, the overall technical indicators support a constructive outlook. The stock’s momentum and relative strength suggest that it remains in an upward trajectory, which complements the fundamental case for investment.
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Investor Takeaway
For investors, the 'Buy' rating on Bank Of India as of 28 December 2025 signals a favourable risk-reward profile. The bank’s strong asset quality, attractive valuation, positive financial trends, and bullish technical setup collectively support the case for investment. While the stock has moderated slightly from its previous 'Strong Buy' rating, the current assessment reflects a solid opportunity for investors seeking exposure to a midcap public sector bank with robust growth prospects.
It is important to note that all financial metrics and returns mentioned are current as of 28 December 2025, providing an up-to-date view of the stock’s performance and fundamentals. Investors should consider these factors alongside their individual risk tolerance and portfolio objectives when making investment decisions.
Summary of Key Metrics as of 28 December 2025
- Mojo Score: 78.0 (Buy Grade)
- Gross NPA Ratio: 2.54%
- Net Profit CAGR: 46.49%
- PAT (9M): ₹7,432.60 crores, up 34.76%
- Interest Earned (Quarterly): ₹18,406.09 crores (highest)
- ROA: 0.9%
- Price to Book Value: 0.8
- PEG Ratio: 0.2
- Stock Returns: YTD +37.01%, 1 Year +35.55%
These figures illustrate the bank’s strong fundamentals and market performance, reinforcing the rationale behind the current 'Buy' rating.
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