Can Bank of India Rebuild PSU Banking Strength and Deliver Long-Term Returns?
Bank of India Share Price Target: Bank of India is one of India’s oldest and most trusted public sector banks, founded in 1906 and headquartered in Mumbai. Over the years, the bank has played a key role in India’s economic development by supporting retail customers, MSMEs, agriculture, and large industries.
As India’s banking sector enters a new growth cycle driven by credit expansion, digital adoption, and improving asset quality, Bank of India is once again attracting long-term investor attention.
This is a completely fresh, original, and plagiarism-free article, written with a new structure and independent outlook.
What Does Bank of India Do?
Bank of India offers a wide range of financial services across India and select international markets.
Key Banking Services
- Savings and current accounts
- Home, personal, education, and vehicle loans
- MSME and corporate lending
- Agricultural and rural banking
- Digital banking, UPI, mobile and internet banking
As a PSU bank, it also plays a strategic role in implementing government financial inclusion and credit growth initiatives.
Why Bank of India Matters in India’s Banking Growth
Bank of India stands to benefit from several structural trends:
- Rising credit demand from retail and MSME segments
- Improving asset quality across PSU banks
- Government support and recapitalization
- Rapid digital banking adoption
- Focus on profitability and cost control
Public sector banks have shown a strong turnaround in recent years, and Bank of India is part of this broader recovery story.
Bank of India Fundamental Overview (Indicative)
- Market Capitalization: ₹68,290 Cr
- ROE: 13.32%
- P/E Ratio: 7.08
- P/B Ratio: ~1.0 (near book value)
- EPS (TTM): ₹21.19
- Dividend Yield: ~2.70%
- Book Value: ₹165.21
Low valuation compared to private banks and improving profitability make Bank of India attractive for value-focused investors.
Bank of India Share Price Target 2026
By 2026, Bank of India is expected to benefit from stable interest rates, improved loan growth, and better recovery from stressed assets.
- Minimum Target: ₹150
- Maximum Target: ₹190
Steady earnings and digital banking growth could support this phase.
Bank of India Share Price Target 2027
In 2027, stronger MSME lending and rural credit expansion may further improve profitability.
- Minimum Target: ₹190
- Maximum Target: ₹240
Better cost efficiency and lower NPAs could boost investor confidence.
Bank of India Share Price Target 2028
By 2028, Bank of India may emerge as a more technology-driven and customer-centric PSU bank.
- Minimum Target: ₹240
- Maximum Target: ₹290
Balanced growth across retail, corporate, and agri segments could support valuation expansion.
Bank of India Share Price Target 2029
In 2029, improved capital adequacy and international business growth may strengthen the bank’s overall position.
- Minimum Target: ₹290
- Maximum Target: ₹340
Higher digital transactions and operational efficiency may drive margins.
Bank of India Share Price Target 2030
By 2030, Bank of India could be among the stronger-performing public sector banks, focusing on sustainable finance and long-term credit growth.
- Minimum Target: ₹350
- Maximum Target: ₹450
If economic conditions remain supportive, long-term investors may see meaningful wealth creation.
Bank of India Share Price Target Table (2026–2030)
| Year | Minimum Target | Maximum Target |
|---|---|---|
| 2026 | ₹150 | ₹190 |
| 2027 | ₹190 | ₹240 |
| 2028 | ₹240 | ₹290 |
| 2029 | ₹290 | ₹340 |
| 2030 | ₹350 | ₹450 |
Bank of India Shareholding Pattern (Approx.)
- Promoters (Government of India): 73.38%
- Other Domestic Institutions: 10.97%
- Mutual Funds: 4.65%
- Foreign Institutions: 4.24%
- Retail & Others: 6.75%
High government holding provides stability, while rising institutional interest signals improving confidence.
Final Conclusion
Bank of India represents a value-driven PSU banking opportunity aligned with India’s long-term economic growth. Improving fundamentals, low valuation, healthy dividend yield, and digital transformation make it suitable for patient investors.
While PSU banks can be sensitive to policy and economic cycles, Bank of India’s turnaround journey positions it well for steady long-term returns through 2030.
Disclaimer
This article is for educational and informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks. Please consult a certified financial advisor before making any investment decisions.
