PSU Bank Pressure: Bank of India Stock Slips Despite Strong Results

Bank of India: Amid the recent disturbance in the Indian stock market, investors are closely watching public sector banks (PSU banks). Bank of India (BoI) closed at ₹161.79 on Friday, February 13, down 2.12 percent from the previous session. However, recent multi-bagger returns and strong quarterly results have kept the stock on market experts’ favourites list.

Fundamentals Strong Despite the Decline

Bank of India shares witnessed profit-booking pressure during Friday’s session. The stock opened at ₹164.10 but fell to a low of ₹161.26 due to negative market sentiment. Despite this, if we look at its performance over the past year, the bank has delivered impressive returns of over 55 percent to its investors.

The bank’s true strength lies in its Q3 FY26 results. Bank of India’s net profit increased by 7 percent year-on-year to ₹2,705 crore in the December 2025 quarter. Most impressively, the bank has significantly improved its asset quality, with its gross NPA (GNPA) falling from 3.69% to a low of 2.26%. With a market cap of ₹73,657 crore, the bank is now rapidly expanding its profitability and digital penetration.

Will there be a recovery on Monday

For the upcoming trading session, Monday, February 16, technical analysts believe that the stock is currently in a correction mode, but its long-term trend remains positive.

Technical Levels

According to the report, the ₹158-₹160 levels are acting as strong support. If the stock holds this level on Monday, we could see a bounce back towards ₹168-₹170. ₹170.50 (52-week high) is a major resistance on the upside, and once crossed, the stock could move towards new targets of ₹185.

Brokerage Houses

Woman's hands with new indian 500 rupees banknotes. — Woman’s hands holding brand new indian 500 rupees banknotes.

Experts at leading brokerage firms Sharekhan and Trendlyne have maintained their ‘Buy’ rating on the stock. Analysts have given average target prices of ₹182 to ₹190 for the next 12 months. Some experts believe that if the bank’s credit growth continues at this pace of 15%, the stock could even cross the psychological level of ₹200 by the end of 2026.

Why could BoI’s stock rise

There are three main reasons behind the Bank of India’s growth story. First, its RAM (Retail, Agri, MSME) portfolio, which now represents 58.5% of total loans, has reduced the bank’s risk. Second, the bank’s CASA ratio (~38%) helps it raise funds at a lower cost. And third, the bank’s growing digital transaction footprint, with over 96% of transactions now conducted digitally, is reducing operating costs.