Bank of India's Issuer and Debt Ratings Reaffirmed at AA+ by India Ratings
India Ratings has reaffirmed Bank of India's Basel-III Tier II and Infrastructure Bonds at 'IND AA+' with a Stable outlook. An Issuer Rating of 'IND AA+' was also assigned. The ratings reflect the bank's systemic importance, improving asset quality, and strong capital position, despite pressure on its deposit profile.
Credit ratings are crucial for a bank's borrowing costs and investor confidence. An 'AA+' rating suggests a strong credit profile, which is generally positive but medium in impact as it doesn't represent a significant upgrade or a change in the fundamental business operations.
The reaffirmation of credit ratings at 'AA+' with a stable outlook by a reputable agency like India Ratings is a positive development for the bank, indicating financial stability and strength.
Bank of India (BOI) has received a significant affirmation of its creditworthiness from India Ratings & Research. The rating agency has reaffirmed the bank's Basel-III compliant Tier II Bonds and Long Term Infra Bonds at 'IND AA+' with a Stable outlook. Additionally, India Ratings has assigned an Issuer Rating of 'IND AA+' with a Stable outlook to the bank.
These ratings reflect BOI's systemic importance, evidenced by its stable market share in advances and deposits, and the Government of India's substantial 73.38% stake. The agency noted the government's consistent support through equity infusions and the bank's improving capital position, with a common equity tier-1 ratio of 15.05% and a capital adequacy ratio of 18.01% as of FY26.
The bank's asset quality has also shown improvement, with gross NPA ratio reducing to 1.98% and net NPA ratio to 0.56% in FY26. Profitability has seen a positive trend, with a return on assets of 0.93% in FY26, supported by improving internal accruals and controlled credit costs. The bank reported a net profit of ₹105.27 billion in FY26.
However, the rating agency highlighted that the bank's deposit profile remains under pressure, with low-cost CASA deposits at 32.4% and a rising loan-to-deposit ratio of 82% at end-FY26. Deposit growth has lagged credit growth, leading to an increased share of bulk deposits. Liquidity is considered adequate, with a liquidity coverage ratio of 116% at end-FY26.
India Ratings also attached the press release dated 17.07.2026, which provides further details on the rating actions and the rationale behind them.
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