New Delhi: State-owned Bank of India has announced its decision to exercise the call option on its 9.04% Additional Tier I (AT1) Bonds Series VI (ISIN: INE084A08136). The bank has also fixed Tuesday, 13th January 2026 as the record date for this purpose, according to an official exchange filing.
Details of the Call Option and Record Date
The AT1 Bonds Series VI were initially issued on 28th January 2021, in accordance with the terms outlined in the Information Memorandum dated 27th January 2021. These bonds carry an annual coupon rate of 9.04%, with the option for the bank to redeem them on 28th January 2026.
By exercising the call option, Bank of India will pay the bondholders the principal along with broken period interest on 28th January 2026. Following this payment, the bank’s liability to the bondholders will cease entirely, including any rights to further interest or principal payments.
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Market Response
Following the announcement, shares of Bank of India closed at Rs 142.56, reflecting a slight decline of 0.52% at the Bombay Stock Exchange (BSE). Analysts suggest that the exercise of the call option is a routine financial management move, enabling the bank to optimize its capital structure and take advantage of prevailing interest rates.
About Bank of India
Bank of India, established in 1906 and headquartered in Mumbai, is a leading public sector bank in India. The bank offers a wide range of financial services including retail banking, corporate banking, investment services, and treasury operations. Known for its extensive branch network and commitment to financial inclusion, Bank of India plays a significant role in supporting India’s economic growth.
