New Delhi: Bank of India (BoI), a prominent public sector bank, has successfully raised ₹2,500 crore through the issuance of Basel III-compliant Tier II bonds at a coupon rate of 7.28% per annum. The bonds were issued via the NSE Electronic Bidding Platform, with the base issue size set at ₹1,000 crore and an additional green shoe option of ₹1,500 crore.
Strong Investor Response
The bond issue witnessed robust investor interest, with a total of 68 bids amounting to ₹4,982 crore. Out of these, the bank accepted 29 bids totaling ₹2,500 crore. The successful closure of the issue highlights strong market confidence in Bank of India’s financial stability and growth prospects.
Purpose of the Tier II Bonds
The Tier II capital raised through this issuance will be utilized to augment the overall capital of the bank and enhance its long-term financial resources in accordance with the Reserve Bank of India (RBI) guidelines. The funds raised are not earmarked for any specific project but will support BoI’s normal business operations, helping the bank maintain strong capital adequacy ratios and improve its lending capacity.
About Bank of India
Founded in 1906, Bank of India is a leading public sector bank headquartered in Mumbai. BoI offers a comprehensive range of banking services, including retail, corporate, and international banking. The bank has a widespread network across India and overseas, serving millions of customers and contributing significantly to the country’s financial infrastructure.
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