Bank of India's Basel III Tier II Bonds Rating Reaffirmed 'IVR AAA/Stable' by Infomerics
Infomerics Ratings reaffirms IVR AAA/Stable on Bank of India's ₹1,800 crore Basel III Tier II Bonds. Rating factors in GOI support, improved earnings, and capitalization. Constraints include asset quality and deposit growth. BOI reported strong Q1FY27 performance and plans ₹7,500 crore capital raise in FY27.
The reaffirmation of a strong credit rating for the bank's Tier II bonds is significant for its debt issuance capacity and investor confidence, impacting its borrowing costs and financial strategy.
The reaffirmation of the highest rating (IVR AAA/Stable) by Infomerics on Bank of India's Tier II Bonds is a positive development, indicating strong creditworthiness and stability.
Infomerics Ratings has reaffirmed its long-term rating of IVR AAA/Stable on Bank of India's (BOI) Basel III Compliant Tier-II Bond Programme amounting to ₹1,800 crore.
The rating reflects the bank's sovereign ownership with continued support from the Government of India (GOI), which holds a 73.38% stake as of June 30, 2026. It also considers the sustained improvement in BOI's earnings profile, diversified loan portfolio with growth in advances, established market reach, and comfortable capitalization backed by a healthy resource profile.
However, the rating strengths are constrained by modest, albeit improving, asset quality and moderate growth in deposits compared to advances. The outlook remains stable, with Infomerics expecting continued support from GOI, growth in advances, a healthy resource profile, comfortable capitalization levels, and improvement in asset quality.
BOI's earnings profile showed improvement in FY26, with operating profit increasing by 4% to ₹17,049 crore and net profit by 14% to ₹10,527 crore. Q1FY27 also saw strong momentum, with operating profit up 26% to ₹5,051 crore and net profit up 36% to ₹3,068 crore. The bank plans to raise approximately ₹7,500 crore in FY27 through AT-I and Tier-II instruments to support capital requirements.
Asset quality has improved, with GNPA and NNPA at 1.98% and 0.56% respectively as of March 31, 2026. The bank aims to reduce fresh slippages to around ₹4,000 crore in FY27. A key concern remains the credit-deposit ratio, which was elevated at 83.19% as of March 31, 2026, necessitating a continued focus on resource mobilization.
What to do with a filing like this
Bank of India filed this with the NSE as a statutory disclosure, categorised under debt fundraising. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Bank of India. Read the original for the full detail.