Bank of India

“Bank of India has completed a credible NPA repair cycle and is not in distress, but every structural factor — sub-cost-of-equity ROE, government ownership with no management skin in the game, a narrowing moat against better-capitalised private banks, and no margin of safety at current P/B — argues against long-term ownership. At 0.78x book, the market has correctly priced in structural mediocrity; there is no catalyst to close the valuation gap without a PSU reform or privatisation that has remained perpetually 'on the horizon' for years. Capital compounds far more reliably in private-sector Indian banks.”