Current Rating and Its Significance
MarketsMOJO's 'Buy' rating for Bank Of India indicates a positive outlook on the stock, suggesting it is a favourable investment opportunity for investors seeking growth with a balanced risk profile. This rating reflects a comprehensive evaluation of the company's quality, valuation, financial trend, and technical indicators as of today, rather than solely relying on historical data from the rating update date.
Quality Assessment
As of 09 January 2026, 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 NPAs is a critical indicator of asset quality in the banking sector, suggesting that the bank's loan portfolio is relatively healthy compared to many peers.
Moreover, the bank has reported positive results for 17 consecutive quarters, underscoring consistent profitability and operational stability. The Return on Assets (ROA) stands at 0.9%, which, while modest, is respectable within the public sector banking space and reflects efficient utilisation of assets to generate earnings.
Valuation Perspective
Bank Of India is currently trading at an attractive valuation, with a Price to Book (P/B) ratio of 0.8. This suggests the stock is priced below its book value, offering potential upside for value-oriented investors. The valuation is considered fair when compared to the historical averages of its sector peers, indicating that the stock is not overvalued despite its recent strong performance.
The Price/Earnings to Growth (PEG) ratio is notably low at 0.2, which implies that the stock's price growth is favourable relative to its earnings growth. This metric often signals undervaluation when below 1, making Bank Of India an appealing choice for investors seeking growth at a reasonable price.
Financial Trend and Profitability
The latest data shows robust financial trends for Bank Of India. The company has achieved a compound annual growth rate (CAGR) of 46.49% in net profits over the long term, reflecting strong earnings momentum. For the nine months ended recently, the Profit After Tax (PAT) reached ₹7,432.60 crores, marking a growth of 34.76% compared to previous periods.
Interest earned in the latest quarter hit a record high of ₹18,406.09 crores, highlighting the bank's expanding core income streams. These figures collectively indicate a positive financial trajectory, supporting the 'Buy' rating by signalling sustained profitability and growth potential.
Technical Outlook
From a technical standpoint, Bank Of India exhibits bullish momentum. The stock has delivered strong returns over various time frames as of 09 January 2026: a 1-day gain of 1.19%, a 1-month increase of 4.98%, and an impressive 1-year return of 50.71%. The six-month return stands at 28.40%, further confirming the upward trend.
This positive price action aligns with the technical grade assigned, suggesting that market sentiment remains favourable and that the stock may continue to perform well in the near term.
Summary for Investors
In summary, Bank Of India's 'Buy' rating by MarketsMOJO reflects a balanced and well-supported investment case. The bank's strong asset quality, attractive valuation, positive financial trends, and bullish technical indicators combine to present a compelling opportunity for investors. While the rating was last updated on 23 October 2025, the current data as of 09 January 2026 confirms the stock's solid fundamentals and growth prospects.
Investors considering Bank Of India should note the consistent profitability, healthy growth rates, and reasonable valuation metrics that underpin this recommendation. The stock's performance over the past year, with returns exceeding 50%, further reinforces its appeal within the public sector banking space.
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Looking Ahead
Bank Of India’s current standing as a midcap public sector bank with strong fundamentals and a positive outlook positions it well for investors seeking exposure to the banking sector’s growth potential. The combination of quality lending practices, attractive valuation, and consistent financial performance provides a solid foundation for future gains.
While market conditions can fluctuate, the bank’s demonstrated resilience and upward momentum suggest it remains a stock worth monitoring closely. Investors should consider their risk tolerance and investment horizon when evaluating Bank Of India within their portfolios.
Conclusion
MarketsMOJO’s 'Buy' rating on Bank Of India, last updated on 23 October 2025, is supported by the latest data as of 09 January 2026. The stock’s strong quality metrics, reasonable valuation, positive financial trends, and bullish technical signals collectively justify this recommendation. For investors seeking a well-rounded banking stock with growth potential, Bank Of India presents a compelling case.
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