Bank of India surges 7%, hits 8-year high on heavy volumes; here's why

BOI's management guidance of stronger loan growth in the coming quarters, aided by a healthy disbursement pipeline and improving retail-to-corporate mix, remains a key positive, say analysts.

Share price of Bank of India (BOI) today

 

Shares of Bank of India (BOI) hit an eight-year high of ₹168.25, as they surged 7 per cent on the BSE in Thursday’s intra-day trade amid heavy volumes after the bank reported a steady performance for the quarter ended December 2025 (Q3FY26). 

 

In the past four months, the stock price of the public sector bank (PSB) has zoomed 40 per cent. Currently, it quotes at its highest level since January 2018. It had hit a record high of ₹588 on October 7, 2010, data shows.

 

At 10:18 AM; Bank of India stock was trading 5 per cent higher at ₹165, as compared to 0.77 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped nearly two-fold, with a combined 21.18 million equity shares changing hands on the NSE and BSE.  CATCH STOCK MARKET UPDATES TODAY LIVE

Why Bank of India stock price hit an 8-year high on Thursday?

 

BOI reported a steady and improving Q3FY26 performance, supported by healthy business growth, improving margins and continued asset quality strengthening. 

 

The state-owned lender reported 7.47 per cent Year-on-Year (YoY) growth in net profit at ₹2,705 crore in the October-December period of FY26 (Q3FY26) from ₹2,517 crore in the year ago period, aided by growth in non-interest income. Sequentially, the profit was up by 5.9 per cent YoY from ₹2,555 crore.

 

In Q3FY26, its net interest income was up 6.43 per cent YoY to ₹6,461 crore from ₹6,070 crore in Q3FY25. Non-interest income rose 30 per cent YoY to ₹2,279 crore, aided by a sharp increase in profit from sale and revaluation of investments at ₹473 crore and higher other non-interest income at ₹788 crore. NIM improved sequentially to 2.57 per cent, aided by lower cost of funds and improving yield dynamics along with CRR benefits.

 

Asset quality of the lender improved, with gross non-performing assets (NPAs) improving by 28 bps to 2.26 per cent in the December quarter. Net NPAs of the lender stood at 0.60 per cent, down 5 bps form the previous quarter.

 

Bank’s global advances grew 13.6 per cent YoY to ₹7.4 trillion, led by strong traction in retail, agriculture, and MSME (RAM) segments (up 18.1 per cent YoY), while deposits increased 11.6 per cent YoY to ₹8.87 trillion, supported by retail term deposit mobilisation, though CASA ratio moderated to 37.97 per cent from 41.05 per cent in Q3FY25.  ALSO READ | eClerx Services jumps 7% as board to consider bonus issue on Jan 28

Brokerages view on Bank of India stock price

 

Drumil Vithlani, Technical Analyst at Bonanza remains bullish on the sector, and projects up to 26.6 per cent potential upside for BOI.

 

BOI share has delivered a rounding bottom breakout with strong volume, clearly indicating renewed buying interest. The stock is trading comfortably above all major EMAs on the weekly timeframe, confirming both short-term and long-term bullishness, says the analyst from Bonanza. "The support zone lies at ₹130–₹135 range, while the upside potential remains attractive with an expected target of ₹200 or more in the coming phase," says Vithlani. READ REPORT

 

Meanwhile, technical analysts at ICICI Securities expect the outperformance of PSU banks to continue in the coming months as well and BOI seems to be among the outperformers in the pack. The brokerage firm has a ‘Buy’ rating on BOI with a target price of ₹180 per share.

 

Meanwhile, BOI’s management guidance of stronger loan growth in the coming quarters, aided by a healthy disbursement pipeline and improving retail-to-corporate mix, remains a key positive, while further moderation in funding costs could support NIM expansion toward 2.6 per cent by FY-end. Asset quality is expected to remain stable with strong provision coverage and controlled credit costs. While CASA moderation amid tight system liquidity remains a near-term monitorable, ICICI Securities said in a note.

 

With improvement in profitability, CareEdge Ratings expects the bank to maintain a sufficient capital cushion over and above the regulatory requirement in the near-to-medium term. Considering the bank’s significance as one of the largest PSBs, and with a majority shareholding, CareEdge Ratings expects timely and regular support from the government of India to maintain its capitalisation levels, and the same remains a key rating sensitivity.  ====================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.