Bank of India's Issuer Rating Assigned '[ICRA]AA+' and Tier II Bonds Reaffirmed '[ICRA]AA+'
ICRA assigned '[ICRA]AA+ (Stable)' Issuer Rating and reaffirmed '[ICRA]AA+ (Stable)' for Bank of India's ₹2,500 crore Tier II Bonds. Sovereign ownership and strong capitalisation (CET1 at 15.05%) support the rating. Gross NPAs decreased to 1.98% and net NPAs to 0.56% as of March 31, 2026. The bank targets an RoA of 1% in FY2027.
Credit rating upgrades or affirmations are generally positive for a company's borrowing costs and investor confidence. While this is a reaffirmation and an assignment of an issuer rating, it reinforces the bank's financial standing which can have a medium-term impact on its ability to raise debt and attract investors.
The credit rating agency ICRA has assigned a stable issuer rating and reaffirmed the rating for the bank's Tier II bonds, indicating a positive outlook on the bank's financial health and stability.
Bank of India (BOI) has announced that ICRA has assigned an Issuer Rating of '[ICRA]AA+ (Stable)' and reaffirmed the rating for its Basel-III compliant Tier II Bonds at '[ICRA]AA+ (Stable)'. The rating for the Tier II Bonds pertains to a rated amount of ₹2,500 crore.
The rating continues to be supported by BOI's majority sovereign ownership (73.38% as of March 31, 2026) and the demonstrated track record of capital support from the Government of India. The bank's strong capital position, with CET1 and Tier I capital ratios at 15.05% and 15.36% respectively as of March 31, 2026, along with a declining net stressed assets level, also contributes to the rating. BOI's well-developed retail franchise and granular deposit base, comprising 37.64% CASA deposits as of March 31, 2026, support its strong resource profile and competitive cost of funds.
However, asset quality remains a monitorable, although gross NPAs have declined to 1.98% and net NPAs to 0.56% as of March 31, 2026. Profitability has improved, with Return on Assets (RoA) reaching 0.96% in FY2026, but it still trails the Public Sector Bank (PSB) average. The bank aims to achieve an RoA of 1% in FY2027.
ICRA highlights that the bank's liquidity position is strong, with a liquidity coverage ratio of 116.33% and a net stable funding ratio of 125.30% in Q4 FY2026, both well above regulatory requirements. The bank expects the impact of transitioning to the Expected Credit Loss (ECL) framework from April 1, 2027, to be manageable.
What to do with a filing like this
Bank of India filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. 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.