Bank of India shares rally 80% in 10 months; hits new 52-week post Q3 show; what's next

Bank of India target price: Brokerage firms continue to remain positive on the PSU Bank, Bank of India, even as the lender reported a muted performance in the December 2025 quarter. Bank of India has been among the best performing stocks in the last one year and analysts see more legs to the rally.

Bank of India reported a 7.5 per cent YoY fall in the net profit at Rs 2,705 per cent, while net interest income rose 6.5 per cent YoY to Rs 6,462.6 crore for October-December 2025. The state-run lender's gross NPAs improved to 2.26 per cent, while net NPAs were down to 0.60 per cent for the quarter.

Bank of India is a PSU bank with the Government of India holding a 73.38 per cent ownership stake and is the sixth-largest nationalised bank in terms of advances. The bank has a wide network of branches across India and 22 overseas branches with around 65 per went of its domestic branches are serving rural and semi-urban regions.

The bank focuses mainly on the retail, agriculture, and MSME segments, which together accounted for 58.21% of domestic advances as of Sept 30, 2025. Over time, Bank of India's asset quality and operational efficiency has strengthened, with a steady improvement in NPAs, said Master Capital.

Continued improvement in profitability metrics along with consistent business growth, supports a positive outlook for the bank. Gross non-performing assets (NPAs) improved, whereas net NPAs improved, reflecting strong operational performance and management, it said. Master Capital has a 'buy' rating with a target price of Rs 180-187 and a stop loss of Rs 136.

Shares of Bank of India rose more than 6.8 per cent during the trading session on Thursday to hit its 52-week high. However, the stock finally settled at Rs 166.40, up 5.62 per cent for the day. The stock has rallied nearly 80 per cent from its 52-week low at Rs 92.74, hit 10 months ago.

The deposits grew at a healthy, albeit lower pace compared to advances growth. The management expects this pace of growth to sustain and has revised its guidance upwards to 11-12 per cent for FY26. The global NIMs improved sequentially to 2.57 per cent, up by 16 bps QoQ. The benefit of the term deposits repricing was visible in 3Q which led to a decline in cost of deposits, said Systematix Institutional Equities.

The management expects the benefit of TD repricing to continue flowing in while it is churning lower yielding advances for relatively those offering higher yields. It expects the full year NIMs for FY26 to come in at 2.5 per cent levels.  We maintain BUY rating on the bank and increase our target price to Rs 190," it added.
 

Bank of India: Technical Views

Prices of Bank of India are exhibiting pronounced bullish momentum across multiple timeframes, with a decisive break above a long-standing resistance zone on the monthly chart suggesting a transition from consolidation to a new uptrend. Prices are trading above major moving averages, such as the 55-day and 100-day EMAs, which signals strong trend support on the daily chart, said Master Capital.

"Broader price structure reveals a pattern of higher highs and higher lows, denoting sustained demand. Positive momentum indicators such as the MACD and the RSI, which is remaining in a bullish range, support the continued strength. We believe, any short-term pullbacks are likely to be viewed as buying opportunities within the broader uptrend," it added.