19-Aug-2026      19:29

Bank of India plans to raise up to Rs 7,500 crore via capital instruments, backed by GOI

Bank of India announced plans to raise up to Rs 7,500 crore through AT-I and Tier-II capital instruments, alongside reaffirmations of ratings from Infomerics Ratings, which includes IVR AAA/Stable ratings for BASEL III Compliant Tier II Bonds totaling Rs 1,800.00 and a Basel III Compliant Tier-II Bond Programme also valued at Rs 1,800.00, factoring in sovereign ownership and continued support from the Government of India (GOI), which holds a 73.38% stake as of June 30, 2026; the agency also reaffirmed ratings for BASEL HI Compliant Tier II Bonds valued at Rs 1,800.00, noting a PONV feature adequately factored into the rating, and expects continued support from the GOI due to systemic importance. The bank has also reported improvements in key financial metrics, including a CRAR of 18.69% as of Q1FY27, a CET-1 ratio of 16.27% as of Q1FY27, a Tier-I capital of 16.27% as of Q1FY27, a GNPA of 1.81% as of June 30, 2026, and an NNPA of 0.51% as of June 30, 2026, alongside a decline in fresh slippages to Rs 1,778 crore in Q1FY27 from Rs 2,080 crore in Q1FY26, with a target of Rs 4,000 crore for FY27.

News source: Capital Market - Live News