Assumptions blue workbook inputs
Revenue modelIncome statementBalance sheetCash flowScenariosDCF inputs editable input estimate years Expand
BANK OF INDIA | NSE: BANKINDIA | BSE: 532149 | DCF inputs - prepared for a later valuation stage; no valuation is performed here — Standalone financial statements prepared under Indian GAAP in the forms of the Third Schedule to the Banking Regulation Act, 1949 (RBI formats). Ind AS is not applicable to Indian banks at the build date. Reporting currency INR; all amounts in Rs crore (1 crore = 10 million) unless stated. Fiscal year ends 31 March; FY2026 = year ended 31-Mar-2026. Blue font = editable driver assumption. — Period type · Actual · Projected · Projected · Projected · Projected · Projected
| Line item | Unit / ref | FY2026 | FY2027 | FY2028 | FY2029 | FY2030 | FY2031 |
|---|---|---|---|---|---|---|---|
| Basis | Audited | Projected - Base case | Projected - Base case | Projected - Base case | Projected - Base case | Projected - Base case | |
| A. SCOPE OF THIS TAB | |||||||
| This is a MODEL-ONLY engagement. This tab assembles the inputs a valuation stage would need and stops there. It contains NO discount-rate application, NO terminal value, NO equity value, NO per-share value and NO recommendation. | |||||||
| For a bank, enterprise-value free cash flow is not meaningful because debt is raw material rather than financing. The correct constructs are free cash flow to equity, defined as net profit less the capital that must be retained to support risk-weighted-asset growth, and the residual-income or excess-return form, which values opening book value plus the present value of returns earned above the cost of equity. Both are laid out below. | |||||||
| B. COST OF EQUITY INPUTS (CAPM) - editable | |||||||
| Risk-free rate - 10-year Government of India security | % | 6.95% | About 6.95% at 31-Aug-2026. GAP: the exact fiscal-year trading ranges were not sourced from the RBI Handbook of Statistics or CCIL | ||||
| Equity risk premium - India | % | 6% | Assumption. Not sourced from a primary document | ||||
| Levered beta | x | 1.25 | Assumption. Not estimated from a price series in this engagement | ||||
| Country risk premium | % | 0% | Nil: the risk-free rate used is already a local-currency rate | ||||
| Cost of equity (risk-free plus beta times equity risk premium) | % | 14.45% | Derived from the four inputs above | ||||
| Terminal growth rate | % | 5.5% | Assumption. RBI projects India CPI and GDP only one to two years ahead; FY2028-FY2031 nominal GDP is an explicit data gap | ||||
| Terminal sustainable return on equity | % | 12.5% | Assumption, set at the base-case FY2031 return on average shareholders funds | ||||
| Implied terminal payout ratio (1 less growth divided by return on equity) | % | 56% | Derived | ||||
| C. REGULATORY CAPITAL INPUTS - editable | |||||||
| CET-1 regulatory minimum including capital conservation buffer | % | 8% | 5.500% CET-1 minimum plus 2.500% capital conservation buffer. Bank of India is not a domestic systemically important bank, so no surcharge applies. The countercyclical buffer has never been activated | ||||
| CET-1 operating target used for the capital-retention calculation | % | 11% | Assumption. Reported CET-1 was 15.05% at 31-Mar-2026 and 15.97% at 30-Jun-2026, far above either level | ||||
| Total CRAR regulatory minimum including buffer | % | 11.5% | Basel III as applied by RBI | ||||
| D. FREE CASH FLOW TO EQUITY - capital-generation build, by scenario | |||||||
| Net profit | Rs crore | ||||||
| Bull | crore | 15,331 | 18,440 | 21,991 | 25,303 | 28,962 | |
| Base | crore | 11,931 | 12,574 | 13,475 | 14,289 | 15,693 | |
| Bear | crore | 3,552 | 414.59 | -957.81 | -1,617 | -2,103 | |
| Risk-weighted assets, closing | Rs crore | ||||||
| Bull | crore | 555,018 | 621,522 | 690,961 | 765,104 | 843,893 | |
| Base | crore | 554,340 | 616,499 | 678,640 | 743,906 | 814,278 | |
| Bear | crore | 547,116 | 592,931 | 641,353 | 686,275 | 734,425 | |
| Increase in risk-weighted assets | Rs crore | ||||||
| Bull | crore | 58,169 | 66,504 | 69,439 | 74,143 | 78,788 | |
| Base | crore | 57,491 | 62,159 | 62,141 | 65,266 | 70,372 | |
| Bear | crore | 50,267 | 45,815 | 48,422 | 44,922 | 48,150 | |
| Capital to retain at the regulatory minimum CET-1 | Rs crore | ||||||
| Bull | crore | 4,654 | 5,320 | 5,555 | 5,931 | 6,303 | |
| Base | crore | 4,599 | 4,973 | 4,971 | 5,221 | 5,630 | |
| Bear | crore | 4,021 | 3,665 | 3,874 | 3,594 | 3,852 | |
| Capital to retain at the target CET-1 | Rs crore | ||||||
| Bull | crore | 6,399 | 7,315 | 7,638 | 8,156 | 8,667 | |
| Base | crore | 6,324 | 6,837 | 6,836 | 7,179 | 7,741 | |
| Bear | crore | 5,529 | 5,040 | 5,326 | 4,941 | 5,296 | |
| Free cash flow to equity, at the regulatory minimum | Rs crore | ||||||
| Bull | crore | 10,678 | 13,120 | 16,436 | 19,372 | 22,659 | |
| Base | crore | 7,332 | 7,602 | 8,504 | 9,068 | 10,063 | |
| Bear | crore | -468.85 | -3,251 | -4,832 | -5,211 | -5,955 | |
| Free cash flow to equity, at the target CET-1 | Rs crore | ||||||
| Bull | crore | 8,933 | 11,124 | 14,353 | 17,147 | 20,295 | |
| Base | crore | 5,607 | 5,737 | 6,640 | 7,110 | 7,952 | |
| Bear | crore | -1,977 | -4,625 | -6,284 | -6,558 | -7,399 | |
| CET-1 capital, closing | Rs crore | ||||||
| Bull | crore | 87,791 | 100,552 | 115,933 | 133,738 | 154,375 | |
| Base | crore | 84,602 | 92,191 | 100,419 | 109,264 | 119,333 | |
| Bear | crore | 76,749 | 73,609 | 69,409 | 64,593 | 59,290 | |
| Surplus CET-1 over the regulatory minimum | Rs crore | ||||||
| Bull | crore | 43,390 | 50,830 | 60,656 | 72,530 | 86,863 | |
| Base | crore | 40,255 | 42,871 | 46,128 | 49,751 | 54,191 | |
| Bear | crore | 32,980 | 26,174 | 18,101 | 9,691 | 535.71 | |
| Surplus CET-1 over the target | Rs crore | ||||||
| Bull | crore | 26,739 | 32,184 | 39,927 | 49,577 | 61,546 | |
| Base | crore | 23,624 | 24,376 | 25,769 | 27,434 | 29,762 | |
| Bear | crore | 16,567 | 8,386 | -1,139 | -10,898 | -21,497 | |
| Dividend paid | Rs crore | ||||||
| Bull | crore | 2,316 | 3,680 | 4,610 | 5,498 | 6,326 | |
| Base | crore | 2,105 | 2,506 | 2,766 | 2,965 | 3,144 | |
| Bear | crore | 1,579 | 355.25 | 41.46 | 0 | 0 | |
| Memo: ECL transition charge to opening reserves | Rs crore | ||||||
| Bull | crore | 0 | 2,000 | 2,000 | 2,000 | 2,000 | |
| Base | crore | 0 | 2,480 | 2,480 | 2,480 | 2,480 | |
| Bear | crore | 0 | 3,200 | 3,200 | 3,200 | 3,200 | |
| E. RESIDUAL-INCOME (EXCESS-RETURN) INPUTS - base case | |||||||
| Opening shareholders funds (balance-sheet basis) | crore | 87,990 | 87,990 | 97,816 | 105,405 | 113,633 | 122,478 |
| Opening net worth (RBI basis) | crore | 75,278 | 75,278 | 85,104 | 92,693 | 100,921 | 109,766 |
| Net profit | crore | 10,527 | 11,931 | 12,574 | 13,475 | 14,289 | 15,693 |
| Return on opening shareholders funds | pct | 13.56% | 12.86% | 12.78% | 12.57% | 12.81% | |
| Cost of equity | pct | 14.45% | 14.45% | 14.45% | 14.45% | 14.45% |