Bank of India – Credit Rating Update (17 July 2026)

Introduction

On 17 July 2026, Bank of India (scrip code BANKINDIA, 532149) filed a Regulation 30/55 disclosure with the NSE and BSE, reporting that ICRA has assigned an Issuer Rating of AA+ (Stable) and reaffirmed the AA+ (Stable) rating on its Basel‑III compliant Tier II bonds.

Rating Summary

Item	Rating	Outlook	Date
Issuer Rating	AA+	Stable	17‑Jul‑2026
Basel‑III Tier II Bonds (ISIN INE084A08227)	AA+	Stable	17‑Jul‑2026

The Basel‑III Tier II bond issue amounts to Rs 2,500 cr (coupon 7.28 %, maturing 12 Dec 2035).

Key Financial Indicators (Standalone)

Metric	FY 2025	FY 2026
Total Income (₹ cr)	31,515	33,373
Profit After Tax (₹ cr)	9,219	10,527
Total Assets (₹ lakh cr)	10.34	11.55
CET I Ratio	14.84 %	15.05 %
CRAR	17.77 %	18.01 %
Return on Assets (PAT/ATA)	0.95 %	0.96 %
Gross NPA	3.27 %	1.98 %
Net NPA	0.82 %	0.56 %

Source: ICRA Research, Bank of India.

Rationale Behind the Rating

Credit Strengths

• Sovereign ownership: 73.38 % government stake (as of 31 Mar 2026) and a history of capital infusions (≈ Rs 29,784 cr, FY 2017‑2021).
• Strong capitalisation: CET I = 15.05 % and Tier I = 15.36 % (Mar 2026); solvency improved to 5.68 % from 8.10 % (Mar 2025).
• Robust deposit franchise: 5,511 branches (65 % in rural/semi‑urban); CASA deposits 37.64 % of total deposits, slightly above the PSB average.
• Liquidity: Q4 FY 2026 LCR = 116.33 %, NSFR = 125.30 % (both above the 100 % regulatory floor).

Credit Challenges

• Asset quality: GNPA fell to 1.98 % and NNPA to 0.56 % (Mar 2026), but the vulnerable book (SMA‑1/2 + restructured) remains sizable relative to core capital.
• Profitability: ROA at 0.96 % (FY 2026) lags the PSB average of 1.12 %; cost‑to‑income ratio is slightly above peers.

Outlook on Profitability & Risk

• Management expects Net Interest Margins to improve and aims for ROA ≈ 1 % in FY 2027.
• Monitoring points include: sovereign ownership changes, NNPA breaching 2.5 %, and ROA falling below 0.5 % on a sustained basis.

Liquidity Position

• Liquidity Coverage Ratio (LCR): 116.33 % (Q4 FY 2026)
• Net Stable Funding Ratio (NSFR): 125.30 % (Q4 FY 2026)
• Strong retail deposit base and ample liquid investments underpin the profile; RBI liquidity facilities are available if needed.

Rating Sensitivities

Positive	Negative
Ability to lift profitability while preserving a solid solvency and capital base.	Deterioration in sovereign ownership.
	NNPA rising above 2.5 %.
	Sustained ROA below 0.5 %.

Additional Information

• Regulatory context: The rating follows ICRA’s “Rating Methodology for Banks and Financial Institutions” and is reported under SEBI (LODR) Regulations 30 & 55.
• Environmental & Social Risks: No material climate‑related credit risk identified; data security and fraud remain the primary social risk areas, with no material lapses reported.
• Complexity: Basel‑III Tier II bonds are classified as “Highly Complex”; the issuer rating has no complexity indicator.

Contact Details (Bank of India)

• Company Secretary: Usha Ramsinghani (digital signature)
• Investor Relations Cell:
  • Phone: (022) 6668 4490 / 4491
  • Email: headoffice.share@bankofindia.co.in

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This article reflects only the information disclosed in the 17 July 2026 corporate filing and accompanying ICRA press release.