Bank of India shares fall 11% as margins take a hit in Q4

So far this year, Bank of India shares have climbed 8 percent, outperforming 2 percent rise in the benchmark Nifty 50 index

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26 Aug, 2025 12:21

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Shares of Bank of India tumbled over 11 percent to Rs 123 apiece on May 13 after the lender's margins contracted by 23 basis points (bps) year-on-year (YoY) in the January-March quarter (Q4FY24).

Analysts at Morgan Stanley shared an 'overweight' rating post Q4 results, with a target price of Rs 124 per share.

"We expect the stock to remain weak in the near-term as there was no change in asset-quality estimates for FY25. Some of the key negatives in Q4 scorecard were higher slippages as well as higher credit costs," the brokerage firm said.

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Bank of India's net profit grew by 7 percent YoY to Rs 1,439 crore in Q4FY24, while net interest income (NII) rose by 7 percent YoY to Rs 5,937 crore. While its global business increased by 11.6 percent YoY to Rs 11.8 lakh crore, the global return on assets was flat at 0.6 percent on a yearly basis.

The board recommended a dividend of Rs 2.8 per equity share of face value of Rs 10 each for FY23-24, subject to shareholders' approval.

ALSO READ: Bank of India Q4 results: Net profit rises 7% to Rs 1,439 cr

The lender's asset quality remained resilient as well. Bank of India's gross non-performing asset (NPA) ratio stood at 4.98 percent in Q4FY24, as against 7.3 percent in the year-ago period.

Similarly, net NPA ratio of the lender stood at 1.22 percent in Q4FY24 from 1.66 percent in the year-ago period.

So far this year, Bank of India shares have climbed 8 percent, outperforming 2 percent rise in the benchmark Nifty 50 index. Earlier, Bank of India shares touched 52-week high of Rs 158 apiece on April 30, 2024.

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