Cholamandalam Securities
High Conviction Mid Cap Model Portfolio
11th May, 2026
Bank of India

Bank of India

Initiated price

145 *

* Intraday price as of 11th May, 2026

We are now introducing a new stock to the portfolio: Bank of India (NSE: BANKINDIA)

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Bank of India: Investment Rationale

In FY26, the bank achieved a significant milestone in its journey, marked by resilient financial performance, strengthened asset quality, and robust business growth, while continuing its commitment to nation-building.

Bank of India recorded healthy growth across key parameters such as deposits, advances, operating profit, and digital transactions.

The bank’s primary focus remains on calibrated credit growth, emphasis on quality underwriting, sectoral diversification, and responsible lending practices.

For Q4 FY26, the bank reported global deposit growth of 13.5% YoY to Rs 9.27 lakh crore, global advance growth of 15.8% YoY to Rs 7.71 lakh crore, net interest income (NII) growth of 10.5% YoY, and profit after tax (PAT) growth of 15.2% YoY. For FY26, NII stood at Rs 25,474 crore, up 3.1% YoY, while PAT increased by 8% YoY.

Domestic deposits grew by 14.3% YoY to Rs 8.0 lakh crore, while domestic advances increased by 16.1% YoY to Rs 6.54 lakh crore.

Growth was broad-based across all segments during FY26, with retail at +21.2%, agriculture at +17.6%, MSME at +17.7%, resulting in RAM growth of +19.1%, and corporate growth at +12.1%. With this strong performance, the bank expects to continue delivering similar results in FY27.

The aforesaid factors make us believe that the bank is well-positioned to capitalize on upcoming growth opportunities while maintaining strong asset quality.

Management maintained a positive FY27 guidance of 15–16% global credit growth and 13–14% global deposit growth.

The bank has reaffirmed its core objective of mobilizing low-cost deposits to protect its Net Interest Margin (NIM), while simultaneously working to enhance yields on advances to support sustainable growth.

Margins remained stable in Q4FY26 compared to Q3FY26, as the full repricing of term deposits on the liability side had already occurred in Q3FY26.

The Capital Adequacy Ratio at the end of FY26 stood at 18.01%.

The bank is focused on improving asset quality and remains committed to enhancing operational efficiency and profitability, while upholding strict compliance and sound corporate governance practices to deliver long-term value to stakeholders.

Automation and digital platforms have been deployed for personal, vehicle, and gold loans, while the bank has also leveraged its 5,500+ branch outlets to support loan distribution and customer acquisition.

Quick Data

Face Value (Rs.)10.00
No. of Shares (Cr)455
MCAP (Rs. Cr)65,975
52W H/L (Rs.)178 / 109
BSE Code532149
NSE SymbolBANKINDIA
Book Value (FY26)198

Ratios

ROE (FY26)0.93%
ROCE (FY26)14.90%
P/E Ratio (ttm)6.09
Dividend Pay-out 20.50%
Dividend Yield3.21%

Shareholding Pattern (Dec-25)

Promoters73.38%
FII7.26%
DII13.96%
Public5.40%

Stock Price Movement

5d

+4.64%

30d

+0.02%

52w High

-18.54%

52w Low

+33.26%

Sources: CSEC Research, Company Filings, NSE, BSE  •  Date: 11th May, 2026

Company Overview

Company Overview

Bank of India is an Indian public sector bank headquartered in Mumbai, founded in 1906. It was under private ownership and control until 1969, post which was nationalised along with 13 other banks. The bank provides various banking products and services in India and internationally. Presently it has an overseas presence in 15 foreign countries, spread over 5 continents at key banking and financial centres viz., Tokyo, Singapore, Hong Kong, London, Paris, New York, DIFC Dubai and International Banking Unit (IBU) at GIFT City Gandhinagar. It operates through Treasury, Wholesale Banking, and Retail Banking segments.

Further, it also provides NRI services, including loans, money remittance and ancillary services, as well as agri products such as Kisan credit card, gold loan, self-help group, Atmanirbhar schemes, tractor/farm mechanization and food & agri loans.

The Bank has an extensive network of 5,511 branches and 7,685 ATMs & CRA in India spread over all states/union territories including specialized branches. Around 36% of branches are located in Rural area and 19% are in metro cities. The Bank has 22 Overseas Branches, 1 Representative Office at Jakarta, 4 Subsidiaries, 1 Associate/Joint Venture, all spread across 15 countries in 5 Continents of all time zones.

The contribution of foreign operations in Bank’s global business mix has been 13% for FY26.

MDL shipyard

Sources: CSEC Research, Company Filings, NSE, BSE  •  Date: 11th May, 2026

Capability Overview

Treasury

Treasury’ segment includes the entire investment portfolio i.e. dealing in Government and other Securities, Money Market Operations and Forex Operations including Derivative contracts

Wholesale Banking

Wholesale Banking includes all lending activities which are not included under

Retail Banking

Retail Banking segment comprises of Digital Banking and Other Retail Banking (Other Retail Banking includes all housing loan accounts and borrower accounts having exposure up to Rs 7.50 crore).

Sources: CSEC Research, Company Filings, NSE, BSE  •  Date: 11th May, 2026

Significant Ratios

Income Statement (Rs. Cr)

Particulars FY22 FY23 FY24 FY25 FY26
GNPA (%) 9.98% 7.31% 4.98% 3.27% 1.98%
NNPA (%) 2.34% 1.66% 1.22% 0.82% 0.56%
PCR (%) 87.76% 89.68% 90.59% 92.39% 93.57%
ROA (%) 0.43% 0.49% 0.70% 0.90% 0.93%
ROE (%) 10.55% 10.31% 13.13% 15.27% 14.90%
NIM (%) 2.36% 3.01% 2.97% 2.82% 2.52%

Sources: CSEC Research, Company Filings, NSE, BSE  •  Date: 11th May, 2026

Historical Financials

Income Statement (Rs. Cr)

Particulars FY24 FY25 FY26
Interest earned 61,073 71,308 75,613
a. Interest / discount on advances / bills bills 43,126 50,337 53,793
b. Income from investment 14,246 17,384 18,193
c. Interest on balances with RBI & others others 2,886 3,206 2,766
d. Others 815 381 862
Other Income 6,233 9,105 10,036
Total Income 67,306 80,412 85,650
Interest expended 37,757 46,594 50,139
Operating Expenses 15,306 17,210 18,251
Employees Cost 9,263 10,387 10,450
Other Operating Expenses 6,044 6,823 7,801
Total Expenditure 53,063 63,804 68,390
Operating 14,243 16,608 17,260
Provision (other than tax) & Contingencies 4,050 4,050 3,188
Exceptional Items - - 519
Profit from Ordinary Activities before tax 10,193 12,558 13,553
Tax Expenses 3,809 3,219 3,463
Net Profit for the Period 6,385 9,339 10,089
EPS (Earnings Per Share) 14.42 20.97 22.64

Balance Sheet (Rs. Cr)

Particulars FY24 FY25 FY26
Capital 4,553 4,553 4,553
Reserves & Surplus 66,028 76,172 85,405
Minority Interest 161 162 178
Deposits 7,40,611 8,19,806 9,30,973
Borrowing 80,960 1,23,869 1,18,626
Other Liabilities & Provision 31,967 31,862 39,815
Total Capital & Liabilities 9,24,280 10,56,425 11,79,552
Cash and Balances with Reserve Bank of India 38,894 52,126 47,660
Balances with Banks and Money at Call and Short Notice 44,229 48,711 51,929
Investments 2,34,592 2,68,002 2,79,084
Advances 5,66,644 6,53,518 7,64,651
Fixed Assets 10,328 12,047 11,877
Other Assets 29,594 22,020 24,350
Total Assets 9,24,280 10,56,425 11,79,552

Sources: CSEC Research, Company Filings, NSE, BSE  •  Date: 11th May, 2026