Morgan Stanley has maintained its ‘Underweight’ stance on Bank of India, assigning a target price of ₹100 per share, implying limited downside from the current market price of ₹114.75. While the brokerage acknowledged that the bank’s overall growth remains strong and ahead of the broader system, it flagged signs of moderation in both loan and deposit growth.
According to Morgan Stanley, domestic loan growth for Bank of India stood at 14.3% year-on-year in the March quarter, down from 15% in the previous quarter. Meanwhile, domestic deposits grew by 11.2% YoY, compared to 13.3% in the prior three-month period, indicating a mild deceleration in traction.
The brokerage noted that it will be closely monitoring the bank’s margin trajectory and forward-looking commentary in the upcoming quarterly earnings. With the stock already trading above its target, Morgan Stanley sees limited upside unless there is a meaningful improvement in net interest margins or asset quality indicators.
Disclaimer: This article is for informational purposes only. Investors are advised to consult with certified financial advisors before making any investment decisions.
