Current Rating Overview
On 09 March 2026, MarketsMOJO adjusted Bank Of India's rating from 'Strong Buy' to 'Buy', reflecting a recalibration of the stock’s overall assessment. The Mojo Score decreased by 7 points, moving from 81 to 74. This rating indicates a positive outlook on the stock, suggesting it remains a favourable investment option, though with a slightly more cautious stance compared to the previous evaluation.
Here’s How Bank Of India Looks Today
As of 23 April 2026, Bank Of India continues to demonstrate solid fundamentals and promising financial trends. The company operates within the Public Sector Bank sector and holds a midcap market capitalisation, positioning it well within its peer group.
Quality Assessment
The bank’s quality grade is classified as 'good', underpinned by strong lending practices and asset quality. Notably, the Gross Non-Performing Assets (NPA) ratio stands at a low 2.26%, signalling effective credit risk management. This low NPA ratio is a critical indicator of the bank’s asset quality and operational discipline, which supports sustainable profitability and reduces credit-related uncertainties.
Valuation Perspective
Bank Of India’s valuation grade is deemed 'very attractive'. The stock trades at a Price to Book Value of 0.8, which is considered fair and appealing relative to its historical valuations and peer averages. This valuation suggests that the stock is reasonably priced, offering potential upside for investors seeking value opportunities in the banking sector. Additionally, the Return on Assets (ROA) is 0.9%, reinforcing the bank’s efficient utilisation of its asset base to generate profits.
Financial Trend Analysis
The financial grade is rated 'positive', reflecting robust growth and consistent profitability. The bank has achieved a remarkable compound annual growth rate (CAGR) of 51.96% in net profits over the long term. This growth trajectory is supported by 18 consecutive quarters of positive results, highlighting the company’s resilience and operational strength. For the latest quarter, interest earned reached a peak of ₹18,927.13 crores, while profit before tax excluding other income (PBT less OI) grew by 45.5% compared to the previous four-quarter average, amounting to ₹1,337.98 crores.
Technical Outlook
The technical grade is described as 'mildly bullish'. The stock’s recent price movements show a mixed but generally positive trend. Over the past day, the stock declined marginally by 0.59%, but it has gained 2.08% over the past week and 5.81% in the last month. Despite a 4.73% dip over three months, the six-month return stands at a healthy 12.14%, and the year-to-date return is 5.74%. Impressively, the stock has delivered a 29.14% return over the past year, outperforming many peers in the public sector banking space.
Investment Implications
For investors, the 'Buy' rating reflects a balanced view that Bank Of India offers attractive value and solid growth prospects, supported by strong fundamentals and a positive financial trend. The mildly bullish technical signals suggest that while short-term volatility may persist, the medium to long-term outlook remains constructive. The combination of low NPAs, consistent profit growth, and reasonable valuation makes the stock a compelling choice for those seeking exposure to the public sector banking sector with a moderate risk appetite.
Key Financial Highlights as of 23 April 2026
- Gross NPA Ratio: 2.26%
- Net Profit CAGR: 51.96%
- Interest Earned (Quarterly): ₹18,927.13 crores
- PBT less Other Income (Quarterly): ₹1,337.98 crores (45.5% growth vs previous 4Q average)
- ROA: 0.9%
- Price to Book Value: 0.8
- PEG Ratio: 0.3
- 1-Year Stock Return: +29.14%
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Understanding the Rating Components
The 'Buy' rating assigned to Bank Of India is a synthesis of four critical parameters that investors should consider:
1. Quality
Quality reflects the bank’s operational soundness and risk management. Bank Of India’s low Gross NPA ratio of 2.26% indicates prudent lending and effective recovery mechanisms, which are essential for maintaining asset quality and protecting shareholder value.
2. Valuation
Valuation assesses whether the stock price fairly represents the company’s intrinsic worth. With a Price to Book Value of 0.8 and a PEG ratio of 0.3, the stock is attractively priced relative to its earnings growth, offering investors a margin of safety and potential for capital appreciation.
3. Financial Trend
This parameter evaluates the company’s recent and long-term financial performance. Bank Of India’s consistent profit growth, demonstrated by a 51.96% CAGR in net profits and 18 consecutive quarters of positive results, underscores a strong upward trajectory in earnings and operational efficiency.
4. Technicals
Technical analysis considers price trends and market sentiment. The mildly bullish technical grade suggests that while short-term fluctuations may occur, the stock’s price momentum remains generally positive, supporting the case for accumulation by investors.
Conclusion
In summary, Bank Of India’s current 'Buy' rating by MarketsMOJO reflects a well-rounded investment proposition. The bank’s strong fundamentals, attractive valuation, positive financial trends, and supportive technical signals combine to make it a compelling choice for investors seeking exposure to the public sector banking sector. While the rating was updated on 09 March 2026, the comprehensive analysis as of 23 April 2026 confirms the stock’s favourable outlook and potential for delivering value in the medium to long term.
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