Bank of India (BoI) is a public sector bank established in 1906 and headquartered in Mumbai. It was among the first banks to be nationalized by the Government of India in 1969. With operations spanning over 30 countries and a domestic network of more than 5,000 branches, BoI serves retail, corporate, and international banking segments. In recent years, the bank has demonstrated a strong recovery in profitability, asset quality, and capital adequacy, making it a key contender among PSU banks for long-term investors. This article presents a data-driven outlook on the Bank of India’s share price target for 2026–2030, based on verified financials, sector dynamics, and realistic growth assumptions.
Bank of India: Company Overview
- Founded: 1906
- Managing Director: Shri Debadatta Chand
- NSE Symbol: BANKINDIA
- Business Segments: Treasury Operations, Wholesale Banking, Retail Banking
- Market Position: Sixth-largest public sector bank in India by total business (deposits + advances)
Bank of India has significantly reduced its gross and net NPAs since FY2021 and maintained robust capital buffers. Its focus on digital transformation, cost optimization, and credit discipline has supported consistent profit growth—positioning it well in the current banking cycle.
Bank of India: Key Financial Snapshot
| Metric | Value |
|---|---|
| Current Share Price | ₹153.50 |
| Market Capitalization | ₹69,701.35 Cr |
| No. of Shares Outstanding | 455.27 Cr |
| 52-Week High / Low | ₹154 / ₹92.70 |
| P/E Ratio (TTM) | 7.01 |
| P/B Ratio | 0.95 |
| EPS (TTM) | ₹21.85 |
| Book Value (TTM) | ₹161.60 |
| ROE | 13.93% |
| ROCE | 11.98% |
| Dividend Yield | 2.75% |
| Face Value | ₹10 |
| Net Interest Income | ₹24,393.95 Cr |
| Cost-to-Income Ratio | 50.84% |
| Capital Adequacy Ratio (CAR) | 17.77% |
| Profit Growth (YoY) | 45.92% |
| CASA % | 34.84% |
Bank of India Share Price Target Forecast (2026–2030)
| Year | Target Price Range (₹) |
|---|---|
| 2026 | ₹160 – ₹175 |
| 2027 | ₹170 – ₹190 |
| 2028 | ₹180 – ₹210 |
| 2029 | ₹190 – ₹230 |
| 2030 | ₹200 – ₹250 |
Bank of India Share Price Target 2026
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2026 | ₹160 | ₹175 |
Bank of India reported 45.92% YoY profit growth in FY2025, backed by strong loan recovery and lower provisioning. Trading at a P/B of just 0.95 and P/E of 7.01—well below sector averages—the stock appears undervalued relative to its 13.93% ROE. A stable CASA ratio (34.84%) and healthy CAR (17.77%) support sustainable credit growth. Given these fundamentals, a 2026 target range of ₹160–₹175 is reasonable under base-case macro conditions.
Bank of India Share Price Target 2027
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2027 | ₹170 | ₹190 |
If BoI sustains its cost-to-income ratio near 50% and continues expanding its retail loan book, earnings could grow at 15–18% annually. The bank’s consistent dividend payout (~19–20% historically) adds income appeal. Assuming EPS reaches ₹24–₹26 by FY27 and P/E expands modestly to 7.5–8x, the 2027 target range of ₹170–₹190 is justified.
Bank of India Share Price Target 2028
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2028 | ₹180 | ₹210 |
By 2028, the full benefits of past NPA resolution and digital initiatives should reflect in operational efficiency. While BoI lags behind peers like SBI in scale, its improving ROE trajectory and capital strength offer defensive value. A P/E of 8–8.5x on projected EPS of ₹22–₹25 supports the ₹180–₹210 band, assuming no major macro shocks.
Bank of India Share Price Target 2029
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2029 | ₹190 | ₹230 |
Long-term credit demand in semi-urban and rural India remains a tailwind. However, competition from private banks and interest rate volatility pose risks. If BoI maintains ROE above 13% and avoids fresh slippages, investor sentiment could improve. Using a P/E of 8.5–9x on FY29 EPS (~₹22–₹26), the 2029 target is ₹190–₹230.
Bank of India Share Price Target 2030
| Year | Share Price Target 1 | Share Price Target 2 |
|---|---|---|
| 2030 | ₹200 | ₹250 |
Over a five-year horizon, BoI’s appeal lies in stability, dividends, and capital adequacy—not explosive growth. If the bank sustains profitability and begins re-rating amid broader PSU banking optimism, a terminal P/E of 9–10x on FY30 EPS (~₹22–₹25) supports the ₹200–₹250 range. Upside remains limited by its PSU tag, but downside is cushioned by strong buffers.
Bank of India: Shareholding Pattern
| Category | Holding (%) |
|---|---|
| Promoters (Government of India) | 73.38% |
| Domestic Institutional Investors (DII) | 15.18% |
| Foreign Institutional Investors (FII) | 5.82% |
| Public & Others | 5.62% |
High promoter holding ensures policy continuity, while rising institutional interest reflects growing confidence in management execution.
Bank of India: Strengths vs Risks
Strengths:
- Strong 5-year profit CAGR (38.1%) and consistent ROE improvement (13.93% in FY25)
- Healthy capital position (CAR: 17.77%), well above RBI’s 11.5% requirement
- Regular dividend payer with ~19–20% average payout since FY2022
- Trading below book value (P/B: 0.95)—rare among profitable PSU banks
Risks:
- Contingent liabilities of ₹6.71 lakh Cr require ongoing monitoring
- Cost-to-income ratio (50.84%) is higher than efficient peers like Indian Bank (44.77%)
- Vulnerable to interest rate cycles and GDP-linked credit demand swings
- Limited brand premium compared to SBI or PNB
Investment Suitability
| Factor | Assessment |
|---|---|
| Risk Profile | Moderate |
| Ideal Time Horizon | 3–5+ years |
| Volatility | Lower than market average; aligned with PSU banking index |
| Dividend/Income Potential | Yes (2.75% yield + consistent payouts) |
| Best For | Conservative to moderate-risk investors seeking stable PSU banking exposure with income |
FAQs
Is Bank of India a good stock to buy?
Yes, for long-term portfolios seeking undervalued PSU banking exposure with dividends. Its P/B of 0.95, ROE of 13.93%, and 45%+ profit growth make it attractive—but only as part of a diversified financials allocation.
Is BoI a government bank?
Yes. Bank of India is a public sector bank fully owned by the Government of India (73.38% stake). It was nationalized in 1969.
Is Bank of India overvalued?
No. With a P/E of 7.01, P/B of 0.95, and ROE of 13.93%, BoI appears undervalued relative to peers and historical averages.
Why is the Bank of India share falling?
Despite strong fundamentals, PSU banks often face short-term selling due to profit-taking, global rate fears, or a lack of liquidity. BoI’s 1-year return (+56%) may have triggered consolidation.
Final Verdict
Bank of India has transformed into a resilient, well-capitalized PSU bank with improving returns and shareholder-friendly policies. Its combination of below-book valuation, consistent dividends, and strong profit growth makes it a compelling option for conservative investors.
Our Bank of India share price target 2026–2030 (₹160 to ₹250) is grounded in fundamentals, sector trends, and realistic valuation expansion. While it won’t deliver multibagger returns, it offers steady capital appreciation with income—a rare balance in today’s PSU banking landscape.
Disclaimer: Price targets are estimates based on publicly available data and sector analysis. They are not investment advice. Consult a SEBI-registered advisor before making decisions.
Sources
- Screener.in – Bank of India Consolidated Page (FY2025 + TTM)
- Groww.in – Bank of India Stock Profile (Market Cap, P/E, Dividend Yield)
- Bank of India Investor Presentation (Q3 FY26, Jan 2026)
- BSE India – Annual Report FY2025
- RBI Guidelines on Capital Adequacy and NPA Classification
