Bank of India's Basel-III bonds reaffirmed 'CARE AA+; Stable' by Care Ratings

Bank of India's Basel-III compliant Tier II Bonds and Long Term Infra Bonds have received reaffirmed and assigned ratings of 'CARE AA+; Stable' from Care Ratings Limited as of December 18, 2025. This action, disclosed in compliance with SEBI Regulations, covers various bond issuances. For instance, specific Tier-II Bonds (ISIN: INE084A08060) and Infrastructure Bonds (ISIN: INE084A08185) were reaffirmed with a 'CARE AA+; Stable' rating. A new Infrastructure Bond issuance was assigned 'CARE AA+; Stable' as of December 17, 2025.

The ratings reflect the bank's established franchise, strong capitalization, diversified advances portfolio, and improved financial performance, with 73.38% shareholding by the Government of India. As of September 30, 2025, the bank reported a Capital Adequacy Ratio (CAR) of 16.69% and a Common Equity Tier-I (CET I) Ratio of 13.89%. Total gross advances stood at ₹7.09 lakh crore.

Despite these strengths, Care Ratings noted moderate asset quality and an earnings profile that, while improving, remains weaker compared to peer banks. The net interest margin (NIM) is expected to face pressure in FY26 due to faster repricing of advances compared to deposits, potentially moderating profitability in the near term.