Bank of India Q2 FY26 | ₹2,555 Cr Profit, 2.54% GNPA — The PSU Bank That Finally Discovered Excel Filters
1. At a Glance
If government banks were Bollywood stars, Bank of India (BoI) would be that 70s veteran who finally got a Netflix comeback. After decades of NPA therapy, the bank just dropped a Q2 FY26 profit of ₹2,555 crore — its biggest quarterly flex since demonetisation. With a market cap of ₹56,000 crore, a P/E of 5.6x, dividend yield of 3.3%, and book value of ₹183, this mid-tier PSU has gone from “please don’t merge me” to “look, I can lend without drama.”
The share trades near ₹123, up 7% in 3 months — about as exciting as watching cricket highlights on mute, but hey, it’s stable. Net NPA? Down to 0.99%. Gross NPA? Just 2.54%, which for a PSU is basically sainthood. ROA is hovering near 0.9%, ROE at 12.4%, and management swears they didn’t fudge Excel formulas this time.
So yes, Bank of India finally got its act together — and the quarterly report reads like a redemption arc no one expected.
2. Introduction
Once upon a time, Bank of India was the classroom back-bencher of PSU banking — always late to digital class, perpetually under scrutiny, and surviving only because the teacher (read: Government of India) refused to fail it. Fast-forward to FY26, and this once-ignored nationalised dinosaur has put on contact lenses, joined fintech tuition, and actually started doing its homework.
For decades, BoI’s brand meant “forms in triplicate, interest in decimals, and service in installments.” But now? It’s boasting of ₹13.2 lakh crore in business, global presence across five continents, and an app that claims 300+ features — though 290 of them are probably “retry later.”
What changed? Well, for starters, NPAs dropped like half-cooked idlis from 9.98% to 4.6%. CASA deposits stand tall at 42.7%, and credit growth hit double digits for the first time since Orkut was cool. The bank even launched solar panel loans — because if they can’t light up your experience, they’ll at least finance your roof.
So, buckle up. We’re about to dissect this phoenix-level PSU revival story — with enough sarcasm to make an auditor giggle.
3. Business Model – WTF Do They Even Do?
Bank of India basically does three things: take deposits, give loans, and pray they get repaid. The holy trinity of Indian banking.
The Treasury division handles government securities and forex, aka the “safe zone” where no one can mess up unless they sleep through RBI circulars. Wholesale Banking caters to large corporates — i.e., people who call NPAs “strategic restructuring.” Retail Banking is your classic home-loan-and-SIP affair, now dressed up with an app that sends you 17 OTPs for a ₹100 transfer.
Revenue mix in Q1 FY25: Retail (35%), Wholesale (37%), Treasury (27%), Others (1%). A balanced cocktail — two sips retail, one gulp corporate, and a garnish of government bonds.
They’ve also gone international — 21 branches abroad, including London, Paris, Nairobi, and New York. Basically, the desi uncle who won’t retire and now has relatives on every continent. But only ~15% of total business comes from overseas, proving even abroad, PSU banks prefer chai breaks to risk.
4. Financials Overview
Source table
Metric (₹ Cr)
Latest Qtr (Q2 FY26)
YoY Qtr (Q2 FY25)
Prev Qtr (Q1 FY26)
YoY %
QoQ %
Revenue
18,521
17,466
18,467
6.04%
0.29%
EBITDA (Proxy: PBT)
3,361
3,138
2,439
7.1%
37.8%
PAT
2,576
2,422
1,831
6.4%
40.6%
EPS (₹)
5.66
5.32
4.02
6.4%
40.8%
Annualised EPS: ₹5.66 × 4 = ₹22.64 P/E (CMP ₹123): 123 ÷ 22.64 ≈ 5.4x Verdict: Cheaper than a roadside vada pav.
BoI’s earnings graph now looks like a slow but steady staircase instead of an ECG machine. Profit growth of 28% and sales growth of 11.7% means the PSU patient is out of ICU and walking with swagger.
5. Valuation Discussion – Fair Value Range Only
Let’s do the math the EduInvesting way — calm, data-driven, and slightly judgmental.
A) P/E Method
EPS (TTM): ₹21.2
Industry Avg P/E: ~7.5x
Fair Range: 5.5x – 7.5x → Fair Value Range = ₹116 – ₹159
