https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

Bank of India to Raise 5,000 Crore via Infrastructure Bonds in Q4 FY25

The move aligns with the growing trend among banks to leverage infrastructure bonds, which offer unique advantages over traditional funding instruments.
Indian Masterminds Stories

State-owned Bank of India (BoI) has announced plans to raise ₹5,000 crore through infrastructure bonds during the fourth quarter of FY25. The bank’s board approved the decision, as per a regulatory filing on Thursday.

The move aligns with the growing trend among banks to leverage infrastructure bonds, which offer unique advantages over traditional funding instruments.

Why Infrastructure Bonds?
Infrastructure bonds are exempt from regulatory reserve requirements like the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). This allows banks to fully utilize the proceeds for lending activities, particularly in the infrastructure sector.

Additionally, these bonds are increasingly preferred over AT-1 and Tier-2 bonds due to better pricing, making them a cost-effective resource mobilization tool.

Market Demand
Domestic investors have shown significant interest in infrastructure bonds, driving a surge in such issuances by banks in recent months. This demand highlights the growing confidence in infrastructure development as a critical driver of economic growth.

BoI’s fund-raising initiative is expected to bolster its lending capacity and support key infrastructure projects, contributing to the country’s economic development.


Indian Masterminds Stories
Related Stories
NEWS
HAL_resized
HAL Posts Rs 30,400 Crore Revenue, Secures Record Defence Orders
Coal Production (resized)
MCL Achieves Record 225.2 MT Coal Production in FY 2024-25, Registers 9% Growth
NHAI logo
Toll Charges Hiked Across National Highways and Expressways from April 1st By NHAI
Madhya Pradesh Logo IM
Madhya Pradesh Police Proposes SPs’ Authority Over DSP Postings, Sparks Debate
IFS Indian Forest Service resized (IFoS)
Uttarakhand Forest Department Reshuffles IFS Officers' Jurisdiction, Check Order Here
IFS-forest-resized
5 Senior IFS Officers Promoted as Principal Chief Conservator of Forests in Chhattisgarh, Check Here
Swapan Sharma IPS
IPS Swapan Sharma Appointed as Ludhiana Police Commissioner
CBI
IPS Officers Raman Kumar Meena and Shilpa Dyavaiah Appointed to Key CBI Roles
Videos
Padmapani Bora IRS
The Rise of Assam as India’s Most Exciting Tourist Spot | Exclusive with IRS Padmapani Bora
Sajjan Yadav, IAS
The Policy Maker Who Turned India’s Vaccine Story and UPSC Struggles into Bestsellers
WhatsApp Image 2025-03-21 at 14.33
Training The Cops In Mastering The Technology Used By Criminals
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
HAL_resized
HAL Posts Rs 30,400 Crore Revenue, Secures Record Defence Orders
Coal Production (resized)
MCL Achieves Record 225.2 MT Coal Production in FY 2024-25, Registers 9% Growth
Videos
Padmapani Bora IRS
Sajjan Yadav, IAS
WhatsApp Image 2025-03-21 at 14.33
ADVERTISEMENT
ADVERTISEMENT