Research Analysis: Prepared by Darshan Patira

RESEARCH ANALYSIS
Prepared by
Darshan Patira
To FINLATICS
2020-21
About Company
Registered Address: Star House, C-5,Bandra Kurla Complex, Mumbai, Maharashtra – 400051
Phone: 022-66684444
Website: www.bankofindia.co.in
Key people
G Padmanabhan Chairman
Atanu Kumar Das CEO & Managing Director
N Damodharan Executive Director
CG Chaitanya Executive Director
D Harish Shareholder Director
Company’s Background
Industry Banking (Public sector)

Founded in 1906
Auditors:
NBS & Co.
Banshi Jain & Associates
Chaturvedi & Co.
Listed on:
 Bombay Stock Exchange of India (BSE)

 National Stock Exchange of India (NSE)
1. General Overview
Summary
Bank of India has been in the forefront of introducing various innovative services and systems. The
bank has been the first among the nationalized banks to establish a fully computerized branch and
ATM facility at the Mahalaxmi Branch at Mumbai. The bank is also a founder member of SWIFT in
India. It pioneered the introduction of the Health Code System for evaluating/ rating its credit
portfolio. Bank of India provides a wide range of products and services in deposits, loans, NRI
banking, cards, and online services such as Internet banking. Also a wide variety of new products and
services like Kits introduced for NRI Customers opening NRE/ NRO accounts at foreign centres,
Launched Marathi version of the Banks website, enabling internet banking customers to make online
Fixed Deposit, etc.
History
Bank of India was founded on 7th September, 1906 by a group of eminent businessmen from
Mumbai. The Bank was under private ownership and control till July 1969 when it was nationalised
along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh and 50 employees, the
Bank has made a rapid growth over the years and blossomed into a mighty institution with a strong
national presence and sizable international operations. In business volume, the Bank occupies a
premier position among the nationalised banks.
The Bank has over 5000 branches in India spread over all states/ union territories including
specialized branches. These branches are controlled through 55 Zonal Offices and 8 NBG Offices.
There are 60 branches/ offices and 5 Subsidiaries and 1 joint venture abroad.
The Bank came out with its maiden public issue in 1997 and follow on Qualified Institutions
Placement in February 2008.
While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of
introducing various innovative services and systems. Business has been conducted with the
successful blend of traditional values and ethics and the most modern infrastructure. The Bank has
been the first among the nationalised banks to establish a fully computerised branch and ATM
facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder Member
of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/
rating its credit portfolio.
Presently Bank has overseas presence in 18 foreign countries spread over 5 continents – with 52
offices including 4 Subsidiaries, 1 Representative Office and 1 Joint Venture, at key banking and
financial centres viz., Tokyo, Singapore, Hong Kong, London, Paris and New York.
Products and services

Business Loan Car Loan
Credit Card Debit Card
Education Loan Home Loan
Loan against Property Savings Account
2. Management
Shri Atanu Kumar Das is a post graduate in Applied Economics and NET holder from UGC. While
pursuing a doctoral degree at IIT, Kharagpur, Shri Das joined the Banking Industry as Economist in
the year 1994.
In his 26 years of banking experience, he has been involved at both policy and operational levels.
Prior to assuming charge as Delhi Regional Head in January 2015, he was heading Vijaya Bank's
Lucknow Region for more than 3 years. At Vijaya Bank's Corporate Office, Shri Das was handling
Planning & Development, a very key department, among others.
He has been part of several important training programs/workshops conducted at premier
institutions like IIM (Kozhikode), IIM (Ahmedabad), ASCI, NIBM, BTC, Frankfurt School of Business
Management and IDRBT.
He had taken charge as Executive Director of Bank of India on 17.02.2017 and was overseeing
functioning of Finance, Risk Management, Planning, Development & Co-ordination, Strategy &
Economic Intelligence, Information Technology, Human Resources, Financial Inclusion and other key
Departments.
He has taken charge as Managing Director & CEO of Bank of India on 20.01.2020.
Capital Structure
According to annual report of 2018-19, the authorized share capital of the bank is Rs. 3000 Crore.
The paid-up share capital, as on the said date is Rs. 2,759,289,4220 /- which is comprising of
2,759,289,422 equity shares of face value of Rs. 10/- each. ]
Shareholding pattern of BOI
Holder's Name No of Shares % Share Holding
No of Share 3276923350 100%
Promoters 2919690866 89.1%
Foreign Institutions 13125649 0.4%
N Banks Mutual Funds 14181532 0.43%
Others 21038546 0.64%
General Public 132403481 4.04%
Financial Institutions 176483276 5.39%

Financial Analysis
2019-20 2018-19 2017-18 2016-17
Interest earned 41004.82 38312.80 39585.23
Total income 46268.84 44158.69 46404.69
Total expense 38,074.16 36,944.02 36,573.48
Net profit -3,163.00 2,579.00 816.41
Gross NPA 16% 17% 13%
Balance sheet 630,883.91 615,184.34 632,025.95
size
EPS -29.14 -51.83 -14.83
Poor revenue growth of -0.83%, balance sheet of 2018-19 shows decrease in loans and advances
which indicates decrease in growth.
CASA ratio of 35.90% and cost of liability stands at 4.8% which is greater than its competitors.
Poor ROA track record. ROA of 0.90 %.
Rising NPA indicates RED ALERT for bank.
Non-Interest income of bank is very low as compare to its competitors.
After 2017 deposits of bank are decreasing which is one of the major cause of decrease in revenues.
3. SWOT ANALYSIS
Strengths:
Strong Branch Network: Bank of India, being one of the PSBs has one of the strongest domestic
branch networks. Bank of India has 5316 branches as of 31 March 2019, including 56 offices
outside India, which includes five subsidiaries, five representative offices, and one joint venture.
Capital position: Bank of India has a string governmental shareholding at about 89% and about 19%
non-government shareholding. BOI’s total capital ratio is well above the regulatory mandated.
Strong Capital position can strengthen the bank to face any adverse market developments.
Weakness:
Decreasing asset quality: As measured by Non-Performing Assets, the asset quality of BOI has
deteriorated during the last few years. The banks NPAs are growing. As a result, the bank’s return on
average assets has declined even after string revenue growth.
The absence of good financial products/ services: Bank of India lacks insurance, brokerage and
investment-banking services. The bank totally depends on its wholesale banking operations, retail
banking operations and treasury operations. This shows that BOI is heavily dependent on the few
streams it is present in.
Opportunities:
International Business: BOI’s international business is on the rise over the years with NRIs finding
Indian banks remunerative. In FY 2015, the bank’s business grew at 13.7% in the international
market. This situation is likely to sustain and hence guarantees more growth for BOI.
UID/Aadhar based customer base: The financial services companies stand to gain about 125 million
new customers with the government’s plans to collate UID and bank accounts for direct benefits
transfers. This creates a positive outlook for the banking industry.
Growth in Indian Banking Industry: In the last 7 years, the total lending and deposits increased at a
CAGR of 20.7% and 19.7&% respectively. Total asset size of the banking sector is expected to reach
$28,500,000 million by FY 2025. This allows the bank to introduce new financial services and also to
expand its market.
Improving products and services: Bank of India can improve its overall product portfolio thereby

providing better and more number of products with very good services for the products. However, it
seems to be mediocre at best where products and services are concerned.
Threats:
Intense Competition: After increase in FDI in the banking sector, other banks have aggressively
expanded. Various banks have been issued banking and payment banks licenses in the last 2 years.
This allows new entrants to enter the market and also an older player to disrupt the market share.
Burden of NPAs: The Indian banking sector’s NPAs collectively have grown. The gross NPAs as a ratio
of total loans have also increased for all the banks.
Declining brand equity – Players like Bank of Baroda are moving forward of Bank of India in pockets

because of their strong marketing and service teams. As a result, the brand equity of Bank of India is
declining and people prefer regional players more than a centralized bank.
4. Competitive Analysis
Competitor1. Bank Of Baroda
Competitor 2. Canara Bank
BOI BOB Canara

overview Bank of India has The bank was Canara
been in the founded by the Bank (CNRB), one
forefront of Maharaja of of the largest
introducing Baroda, Maharaja public
various Sayajirao sector banks,
innovative Gaekwad III on 20 owned by the
services and July 1908. The Government of
systems. The bank, along with India has its
bank has been 13 other major headquarters
the first among commercial banks located
the nationalized of India, was Bengaluru.
banks to establish nationalised on Established in
a fully 19 July 1969, by Mangalore in
computerized the Government 1906 by
branch and ATM of India and has Ammembal
facility at the been designated Subba Rao Pai, it
Mahalaxmi as a profit-making is one of the
Branch at public sector oldest public
Mumbai. The undertaking (PSU) sector banks in
bank is also a the country. The
founder member government
of SWIFT in India. nationalized
the bank in 1969
Net Profit -16019.50 cr. -12355.15 cr. -12571.26 cr.
Market Cap 10322.31 cr. 14.974.01 cr. 12173.08 cr.
Total Assets 483764.84 cr. 633993.82 cr. 570558.91 cr.
5. CONCLUSION
• By analysing and comparing all the activities and financial information, Bank of India is weak as
compare to its competitors and need to improve in many areas.

Research Analysis: Prepared by Darshan Patira

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RESEARCH ANALYSIS

Industry Banking (Public sector)

NBS & Co.

Banshi Jain & Associates

Chaturvedi & Co.

 Bombay Stock Exchange of India (BSE)

Products and services

Shareholding pattern of BOI

Holder's Name No of Shares % Share Holding

No of Share 3276923350 100%

Promoters 2919690866 89.1%

Foreign Institutions 13125649 0.4%

N Banks Mutual Funds 14181532 0.43%

Others 21038546 0.64%

General Public 132403481 4.04%

Financial Institutions 176483276 5.39%

Poor ROA track record. ROA of 0.90 %.

Rising NPA indicates RED ALERT for bank.

Non-Interest income of bank is very low as compare to its competitors.

Improving products and services: Bank of India can improve its overall product portfolio thereby

Declining brand equity – Players like Bank of Baroda are moving forward of Bank of India in pockets

Competitor 2. Canara Bank

BOI BOB Canara

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