Bank of India rallies 4%, at 8-yr high in weak market; what's driving PSB?

The stock price of Bank of India hit an intra-day high of ₹163.25 on the BSE, and has rallied 37 per cent in the past four months.

Bank of India share price today

 

Share price of Bank of India (BOI) hit an eight-year high at ₹163.25, as the stock surged 4 per cent on the BSE in Monday’s intra-day amid heavy volumes in an otherwise weak market. 

 

The stock price of the public sector undertaking (PSU) bank was quoting at its highest level since January 2018. In the past four months, the market price of BOI has appreciated by 37 per cent.

 

At 11:25 AM; BOI was quoting 3 per cent higher at ₹161.60, as compared to 0.7 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped more than two-fold, with a combined 19.05 million equity shares changing hands on the NSE and BSE. The stock had hit a record high of ₹588 on October 7, 2010, data shows.

 

What’s driving Bank of India’s share price?

 

The banking index has relatively outperformed the headline index, major outperformance seen from the PSU banks as PSU bank index registered nearly 27 per cent gain in the past five months. 

 

The Nifty PSU Bank Index made a new all-time high at 9,071.75 after witnessing a breakout from recent consolidation range, forming higher-highs and higher-lows on the daily time frame. Going ahead, analysts at ICICI Securities expect the index to head towards 9,200 (measuring implication of range breakout) in coming weeks, considering good results from PSU banks.

 

Analysts at ICICI Securities in December 16, 2025 report said that from the data front, BOI stock witnessed gradual decline in open interest without any major delivery based selling pressure. Hence, the recent declines can be attributed as profit booking after a stupendous move and technical analysts at ICICI Securities believe current levels are fresh entry opportunity

 

Long term mean for the stock is placed near ₹120 levels and the brokerage firm believes stock should trade with positive bias till it is holding above these levels in coming months. Analysts recommended ‘BUY’ BOI in the range of ₹132- ₹140 with a target price of ₹180 and a stop loss of ₹115.  CATCH STOCK MARKET LIVE UPDATES TODAY 

Crisil, CARE Ratings on BOI

 

Stability of the banking sector is of prime importance to the government, given the criticality of the sector to the economy, the strong public perception of sovereign backing for public sector banks (PSBs), and severe implications of any PSB's failure, in terms of a political fallout, systemic stability, and investor confidence. The majority ownership creates a moral obligation on the government to support PSBs, including BOI.

 

Supported by the regular capital infusion made by the government and internal cash accrual, BOI's capital adequacy ratios were adequate with Tier 1 and overall capital to risk-weighted adequacy ratio (CRAR) of 15.1 per cent and 17.2 per cent, respectively, at consolidated level as on September 30, 2025 (16.2 per cent and 18.5 per cent, respectively on March 31, 2025 and 15.6 per cent and 17.7 per cent respectively, as on March 31, 2024), Crisil Ratings said.

 

CARE Ratings (CareEdge Ratings) said the ratings factor in the BOI’s comfortable capitalisation supported by periodic capital infusions, its diversified advances portfolio, and improvement in financial performance over the last few years. Ratings also consider expectations of continued support from the Government of India, having a majority (73.38 per cent as on September 30, 2025) shareholding in the bank. However, these strengths are partly offset by its relatively weaker, despite improving, asset quality and earnings profile than its peer banks.

 

CARE Ratings (CareEdge Ratings) expects the bank’s net interest margin (NIM) to witness some pressure in FY26, considering the faster repricing of advances than deposits post the rate cuts, which would result in a moderation in profitability for the bank in the near term.

 

Stable outlook reflects CareEdge Ratings’ expectations that BOI would demonstrate a stable financial performance with gradual improvement in asset quality parameters and low credit costs, while maintaining healthy capitalisation, the rating agency said.  ============================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.