Bank of India's Basel-III Bonds Rated AA+ and AAA by Acuite Ratings
Acuite Ratings reaffirmed Bank of India's Basel-III AT-I Bonds at 'ACUITE AA+' and Tier-II Bonds at 'ACUITE AAA', both with 'Stable' outlook. The bank reported a record PAT of ₹10,527.15 crore in FY26 and a 19.20% YoY growth in advances. Capital adequacy was 18.01% as of March 31, 2026.
Credit rating reaffirmations are important for a bank's borrowing costs and investor confidence, but the impact is moderate as it confirms existing positive trends rather than introducing a major new development.
The reaffirmation of strong credit ratings by Acuite Ratings, along with the mention of record profits and significant business growth, indicates a positive financial health and outlook for the bank.
Bank of India (BOI) announced that Acuite Ratings & Research has reaffirmed its ratings for the bank's Basel-III compliant Additional Tier-I (AT-I) and Tier-II Bonds. The AT-I Bonds received a rating of 'ACUITE AA+' with a 'Stable' outlook, and the Tier-II Bonds were rated 'ACUITE AAA' with a 'Stable' outlook. These ratings were reaffirmed on August 28, 2026.
Acuite also withdrew its long-term ratings on certain AT-I bonds upon the issuer's request. The rating rationale highlights BOI's sustained improvement in its earning profile, capital position, and asset quality. The bank reported a highest-ever Profit After Tax (PAT) of ₹10,527.15 crore in FY26, a significant increase from ₹9,219.02 crore in FY25. Domestic advances grew by 19.20% year-on-year to ₹6,73,833 crore as of Q1FY27. The bank's overall capital adequacy ratio stood at a healthy 18.01% as of March 31, 2026.
The ratings also factor in the bank's stable liability franchise, characterized by a CASA mix of 36.88% as of June 30, 2026, and a high provision cover of 93.83%. However, the bank's asset quality, though improving, remains a monitorable, with Gross NPA at 1.98% and Net NPA at 0.56% as of March 31, 2026. The bank's liquidity position is deemed adequate, with a Liquidity Coverage Ratio of 116.33% as of March 31, 2026.
A plain-language summary of a public exchange filing by Bank of India. Read the original for the full detail.