Bank Of India has informed the Exchange about Credit Rating- Others
BANKINDIA · price
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Infomerics Ratings has reaffirmed the AAA/Stable rating on Bank of India's Basel III Compliant Tier II Bonds worth Rs. 1,800 crore. The rating has been at AAA/Stable consistently since September 2022. The rating reflects the bank's government ownership (GoI holds 73.38% stake), improved earnings (ROA at 0.82%, NIM at 2.55% in Q1FY26), diversified loan portfolio with strong RAM segment growth, comfortable capitalisation (CET1 at 14.52%, overall CRAR at 17.39%), and healthy CASA deposits at 39.88%. Key concerns include modest asset quality with GNPA at 2.92% (improved from 7.31% in FY23) and moderate deposit growth relative to advances. The bank plans to raise Rs. 5,000 crore in FY26 through Additional Tier I and Tier II Bonds.
The reaffirmation of the highest AAA rating reinforces Bank of India's strong credit profile and continued government backing, which is positive for investor confidence. No change in rating means no negative surprise for bondholders or equity shareholders.