ICRA assigns AA+ (stable) to Bank of India’s tier II bonds

ICRA has assigned an AA+ (Stable) rating to Bank of India's (BoI) Basel III Tier II bonds, with a total rated amount of ₹2,500 crore. This action follows the bank's strong capital position, continuous improvement in solvency levels, and declining net stressed assets. BoI’s majority sovereign ownership (73.38% as of September 30, 2025) and a demonstrated track record of capital support from the government of India further underpin the rating.

For H1 FY2026, BoI reported a net profit of ₹4,807 crore on a total asset base of ₹10.69 lakh crore, with a capital adequacy ratio (CRAR) of 16.69% and a CET I ratio of 13.89%. Gross NPA stood at 2.54% and Net NPA at 0.65% as of September 30, 2025, indicating an improvement in asset quality from FY2025. The bank's profitability, though improving, with an annualised return on assets (RoA) of 0.91% in H1 FY2026, remains below the public sector banks' average of 1.12%.

The bank's liquidity position is strong, with a liquidity coverage ratio of 119.76% and a net stable funding ratio of 113.88% in Q2 FY2026, both exceeding the regulatory requirement of 100%. These metrics highlight BoI’s robust financial health and operational stability.