Mumbai: Bank of India has announced a major capital-raising plan after its Board of Directors approved issuance of Basel III-compliant bonds worth up to ₹7,500 crore for the financial year 2026–27. The decision was taken at a board meeting held on April 30, which ran from 3:30 PM to 5:00 PM, according to regulatory filings submitted to the NSE and BSE.
Capital Raising Plan Breakdown
The approved fundraising will be carried out through a mix of Tier I and Tier II capital instruments:
- ₹2,500 crore to be raised via Basel III-compliant Tier I bonds
- ₹5,000 crore to be raised via Basel III-compliant Tier II bonds
These instruments are designed in line with global Basel III norms to strengthen the bank’s capital base and improve financial resilience.
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Objective: Strengthening Capital Adequacy
The bank stated that the capital infusion will help in:
- Improving capital adequacy ratios
- Supporting future credit and loan growth
- Strengthening long-term financial stability
- Meeting regulatory capital requirements
The move is aligned with broader trends in the Indian banking sector, where public sector lenders are actively bolstering capital buffers to support rising credit demand in the economy.
Strong Business Growth Momentum
Alongside the capital-raising plan, Bank of India has reported healthy growth across key banking segments:
- Global advances rose 15.69% year-on-year to ₹7.70 lakh crore
- Domestic advances increased 15.95% year-on-year to ₹6.53 lakh crore
- Total deposits grew 14.33% year-on-year to ₹8.00 lakh crore
- The RAM (Retail, Agriculture, MSME) portfolio jumped 18.63% to ₹3.82 lakh crore
The strong performance highlights sustained demand across lending segments, particularly in retail, agriculture, and MSME businesses.
Stock Market Reaction
Despite the positive developments, shares of Bank of India closed lower on the BSE at ₹139.90, down ₹3.30 or 2.30% on the trading day.
About Bank of India
Bank of India is one of India’s leading public sector banks, nationalised in 1969 and majority-owned by the Government of India. The bank offers a wide range of financial services including retail banking, corporate banking, MSME lending, and treasury operations, with a strong presence across India and international markets.
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