Dalal Street Buzz: BOI Hits Fresh High Amid Heavy Buying

Dalal Street: The dominance of public sector banks (PSU Banks) in the Indian banking sector continues to grow, and Bank of India (BOI) is emerging as a new “multibagger” in this race. BOI shares witnessed a strong movement in today’s trading session, hitting a new 52-week high of ₹173.45. The bank has delighted investors by delivering returns of over 74% over the past year. Market experts believe that the bank’s improving asset quality and increasing focus on digital banking have made it an attractive long-term investment.

Why is BOI’s stock shining

As soon as the market opened this morning, Bank of India shares (BANKINDIA) began trading strongly at ₹172.33. Continued buying activity continued until the market closed, primarily due to the bank’s strong fundamentals. The bank’s market capitalization has currently surpassed ₹78,442 crore. Investor confidence can be gauged from the fact that the stock has gained over 9% in just the past month, which is quite impressive compared to other large banks.

Significant jump in profits and business

The recently announced third quarter (Q3) results have turned the tide in the bank’s favor. Bank of India reported a net profit of ₹2,705 crore for the quarter, a year-over-year increase of approximately 7.5%. The table below illustrates the bank’s strong financial position:

The improvement in the bank’s asset quality is most significant, as gross NPAs have declined by 143 basis points compared to last year, reflecting the bank’s strong credit management.

Next Steps for Investment

Market-leading brokerage houses are quite positive about Bank of India’s future. Leading institutions like Angel One, Geojit, and Sharekhan have maintained their ‘Buy’ and ‘Accumulate’ ratings on the stock. According to analysts, the stock’s next key target is seen between ₹188 and ₹190.

In particular, the bank’s CASA ratio (37.97%) and improved NIM (net interest margin) make it a stable player in the banking sector. Experts believe that if the bank maintains its loan growth rate of 14-15%, the stock could cross the ₹200 mark by the end of the year.

What is most important for investors

On the technical charts, Bank of India’s stock is currently in a strong ‘bullish’ trend and is trading well above all its important moving averages (50-DMA and 200-DMA). However, the stock is close to its 52-week high, so short-term investors are advised to exercise some caution here.

However, from a long-term perspective, buying on dips in the ₹165-₹168 zone could prove to be a masterstroke. The bank’s digital expansion and declining NPA costs make it a safe bet for the future.