Bank of India's Long-Term Debt Rated AA+ Stable by CARE Ratings
CARE Ratings reaffirmed Bank of India's long-term debt rating at 'CARE AA+; Stable' and Certificate of Deposit rating at 'CARE A1+'. The rating factors in government support and the bank's franchise, but notes weaker asset quality and earnings relative to peers. Profitability may face pressure in FY26.
A stable credit rating is important for a bank's borrowing costs and investor confidence. While positive, it doesn't represent a significant immediate change in the bank's operational or financial standing, hence a medium impact.
The reaffirmation of a stable 'AA+' rating by CARE Ratings indicates a positive assessment of the bank's creditworthiness and financial stability, despite acknowledging some challenges.
Bank of India (BOI) announced that CARE Ratings Limited has reaffirmed its credit rating for the bank's debt instruments. The long-term instruments, including Infrastructure Bonds and Tier-II Bonds, have been rated 'CARE AA+; Stable'. The bank's Certificate of Deposit has been rated 'CARE A1+'.
The rating considers BOI's established franchise, pan-India branch network, comfortable capitalization supported by periodic infusions, diversified advances portfolio, and expected continued support from the Government of India, which holds a majority shareholding.
However, the rating is partly offset by the bank's relatively weaker, though improving, asset quality and earnings profile compared to its peers. CARE Ratings expects net interest margins to face some pressure in FY26 due to faster repricing of advances than deposits post rate cuts, potentially moderating profitability in the near term.
Key financial metrics as of September 30, 2025, include a Gross NPA ratio of 2.54%, Net NPA ratio of 0.65%, and a Total Capital Adequacy Ratio (CAR) of 16.69%. The bank reported a Profit After Tax (PAT) of ₹4,807 crore for H1FY26. The bank's liquidity profile is deemed adequate, supported by its retail and CASA depositor base, with a Liquidity Coverage Ratio (LCR) of 119.76% and a Net Stable Funding Ratio (NSFR) of 113.88%.
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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.
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See the model portfoliosA plain-language summary of a public exchange filing by Bank of India. Read the original for the full detail.