Bank of India’s Share Price Sees a 14% Decline in February

Bank of India (BoI) ranks as the 6th largest public sector bank in India, holding a net advances market share of approximately 3.5% and a deposit market share of around 3.6% as of the first half of FY25. The bank operates an extensive network, comprising 5,202 domestic branches and 22 overseas branches as of Q3FY25.

Share Price Performance in February 2025

At 3:24 PM on February 27, 2025, Bank of India’s share price was trading at ₹96.74, marking a 1.36% decline for the day. The stock has seen a cumulative drop of 14% in February, while its year-to-date (YTD) performance reflects a 5% decline. 

Q3FY25 Financial Performance

For the third quarter of FY25, the Bank of India reported a 35% year-on-year (Y-o-Y) increase in net profit, reaching ₹2,517 crore. This significant growth was driven by an improvement in net interest income (NII) and strong treasury operations.

Sequentially, the bank’s net profit rose by 6% compared to the ₹2,374 crore recorded in the September quarter of 2024. Managing Director and CEO R Karnatak attributed this profitability to contributions from core operations, including NII, commissions, cross-selling activities, and gains from investment sales.

Net Interest Income and Margins

The bank’s NII saw an 11% Y-o-Y increase, reaching ₹6,070 crore in Q3FY25 compared to ₹5,463 crore in the corresponding quarter of the previous year. However, the net interest margin (NIM) moderated slightly to 2.80% in Q3FY25 from 2.85% in Q3FY24. The bank has projected NIMs to remain in the range of 2.85%–2.89% for FY25.

Strong Non-Interest Income Growth

Non-interest income, which includes fees, commissions, treasury revenues, and recoveries, witnessed a 46% Y-o-Y surge, reaching ₹1,746 crore. Notably, profit from the sale and revaluation of investments stood at ₹266 crore in Q3FY25, marking a significant turnaround from a loss of ₹129 crore in Q3FY24. Additionally:

• Commissions, exchange, and brokerage income grew by 16% to ₹462 crore.
• Recoveries from written-off accounts also increased by 16% Y-o-Y, totalling ₹391 crore.

Market Reaction and Stock Movement

Despite these positive financials, the stock’s 14% decline in February suggests that investor sentiment may be influenced by broader market trends, potential concerns over margins, or other external economic factors. While the bank maintains its net profit guidance of ₹8,000 crore for FY25. 

Conclusion

Bank of India has showcased financial growth, supported by higher NII and non-interest income. However, the recent decline in its share price highlights the complexities of market sentiment. 

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