Mumbai, February 5, 2026 – India Ratings and Research (Ind-Ra) has reaffirmed Bank of India’s (BoI) Basel III-compliant Tier II bonds and long-term infrastructure bonds at ‘IND AA+’ with a stable outlook. At the same time, Ind-Ra has withdrawn the issuer rating and Basel III Additional Tier I (AT1) bonds, consistent with the agency’s withdrawal policy.
The ratings reaffirmation reflects BoI’s systemic importance, strong capital position, and improving asset quality. With a government stake of 73.38% as of December 2025, BoI continues to benefit from the Government of India’s support, including regular equity infusions that have strengthened the bank’s balance sheet.
Key Rating Highlights:
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Systemic Importance: BoI is the sixth-largest public sector bank in India, with a market share of 3.7% in advances and deposits as of 3QFY26. The bank operates a network of 5,447 domestic and 22 international branches.
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Capital Adequacy: The bank’s Common Equity Tier-1 (CET1) ratio stands at 13.76%, while the overall Capital Adequacy Ratio (CAR) is 17.09%, indicating adequate buffers to support growth and absorb potential credit shocks.
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Asset Quality: BoI’s gross and net non-performing assets (NPAs) have declined to 2.26% and 0.6% respectively, supported by recoveries, write-offs, and provision coverage of 73.9%.
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Profitability: BoI reported an annualized return on assets (RoA) of 0.96% for 3QFY26, with pre-provisioning operating profits sufficient to absorb potential credit costs.
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Liquidity: The bank maintains adequate liquidity, with a Liquidity Coverage Ratio (LCR) of 109% as of September 30, 2025.
Bond-Specific Details:
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Infrastructure Bonds: INR 150 billion rated ‘IND AA+’/Stable
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Basel III Tier II Bonds: INR 25 billion rated ‘IND AA+’/Stable
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Basel III AT1 Bonds: INR 25 billion withdrawn
India Ratings highlighted that BoI’s deposit growth has lagged credit growth, leading to a loan-to-deposit ratio of 82%, and noted that maintaining deposits will be key to sustaining performance.
Analyst Comments:
Vivek Singh, Analyst at India Ratings, noted, “The ratings reaffirmation underscores BoI’s improving financial metrics, systemic importance, and adequate capital buffers. Continued government support and disciplined risk management remain key drivers for the bank’s credit profile.”
BoI’s strong capitalization, ongoing improvements in asset quality, and prudent credit cost management position it well to sustain its growth trajectory in the near to medium term.
About Bank of India:
Bank of India is a leading Indian public sector bank, serving both domestic and international clients through over 5,300 domestic branches and 22 overseas offices. The bank has a strong presence in retail and corporate banking, with a focus on sustainable growth and asset quality improvement.
About India Ratings:
India Ratings and Research (Ind-Ra) is a SEBI-registered credit rating agency providing independent credit opinions on Indian companies, financial institutions, and structured finance instruments. Ind-Ra is a wholly-owned subsidiary of the Fitch Group.