Turnaround for PSU Bank shares? Stock 20% down in 3 months but analysts are bullish

Bank of India target price: Domestic brokerage firms remain positive on Bank of India, following a strong set of numbers in the March 2026 quarter, even as the stock has declined more than 20 per cent in the last three months from its 52-week high. They see up to 25 per cent upside potential in the PSU lender.

Shares of Bank of India (BoI) rose to Rs 144.30 on Thursday, commanding a total market capitalization close to Rs 66,000 crore. The stock has gained nearly 33 per cent from its 52-week low at Rs 109, hit in August 2025. Interestingly, the stock remained mostly flat in the last one month, six months and year-to-date basis.
 

Bank of India Q4 results

Bank of India reported a 17 per cent YoY rise in the net profit at Rs 3,741 crore, while its total income rose 4.19 per cent YoY to Rs 22,852 crore for the March 2026 quarter. Its operating profit came in at Rs 5,081 crore, 3.34 per cent higher and announced a final dividend of Rs 4.65 per share. NPAs declined on both gross and net levels. Global business rose 14.53 per cent YoY to Rs 16.98 lakh crore.
 

Bank of India: Target prices & expert views

Bank of India ended FY26 with steady growth in deposits, advances and profit, while maintaining strong asset quality, said Chola Securities. It said the bank stayed focused on calibrated credit growth, quality underwriting, sectoral diversification and responsible lending. The brokerage has added the stock to its high conviction midcap portfolio.

Chola Securities said management has guided for 15-16 per cent global credit growth and 13-14 per cent deposit growth in FY27. Margins were stable, the capital adequacy ratio stood at 18.01 per cent, and the bank continued to use digital platforms and its 5,500-plus branches for loan distribution.

The sequential improvement in BoI earnings was mainly due to higher Non-Interest Income and sequential growth in NIIs. The bank has reported an advances growth of 4.4 per cent QoQ and has guided for a growth in the range of 15-16 per cent for FY27. The management expects this pace of deposits growth to sustain and has guided for a growth in the range of 13-14 per cent for FY27, in Systematix Institutional Equities.

The global NIMs improved sequentially to 2.61 per cent for Q4FY26, up by 4 bps QoQ but flat YoY. The management expects NIMs to improve going forward, driven by an increased focus on RAM and mid-corporate advances alongside lowering of the cost of deposits," it added with a 'buy' rating and a target price of Rs 175, valuing it ad Rs 0.9 times of adjusted book value apiece of Rs 206.

PAT grew 14.8 per cent YoY to Rs. 3,016 crore, bolstered by an 11 per cent YoY rise in NII. GNPA ratio dropped to 1.98 per cent, while NNPA fell to 0.56 per cent, supported by controlled slippages and healthy recoveries, said Mirae Asset ShareKhan. "Net advances surged 17 per cent YoY to Rs. 7.6 lakh crore, led by the retail, agri, and MSME, it noted.

"With a strengthening balance sheet and clear path towards 1 per cent RoA, the bank's attractive valuations and steady earnings growth position it as a resilient player. However, near-term outlook owing to global uncertainties warrant cautious approach. Thus, we maintain a 'buy' with a target price of Rs 175," it said citing increase in bad loans due to geopolitical tensions as a major risk.

The bank’s continued focus on operational efficiency, business expansion, and collections improvement reflects its long-term strategy to strengthen operational resilience, customer acquisition, and profitability. This is supported by a constructive outlook on asset quality, driven by declining SMA levels, controlled slippages, stable recoveries, and an increasing focus on lower-risk segments, said Ajcon Global Services.