Bank of India Plans ₹20,000 Crore Fundraise Through Infra Bonds

Bank of India has announced plans to raise up to ₹20,000 crore during FY2025-26 through long-term infrastructure bonds. The decision was approved by the bank’s board and communicated through a regulatory filing on Thursday.

Use of Funds

The capital will be used to support infrastructure-related lending. These bonds are exempt from maintaining the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), allowing the funds raised to be fully deployed for long-term loans.

Several banks have been issuing infrastructure bonds as an alternative to AT-1 and Tier-2 bonds. These bonds are considered more cost-effective.

Bank of India Q4FY25 Financial Results

In the quarter ending March 2025, Bank of India reported a standalone net profit of ₹2,626 crore, up 82.5% from ₹1,439 crore in the same quarter last year. Net interest income rose 2.1% to ₹6,063 crore.

The bank's gross non-performing assets (NPA) declined to 3.27% from 3.69%, while net NPAs fell to 0.82% from 0.85% on a year-on-year basis. Provisions for the quarter stood at ₹1,338 crore, compared to ₹304 crore in the previous quarter.

Union Bank of India recently approved plans to raise ₹6,000 crore through equity and bonds. SBI is also preparing for a ₹25,000 crore qualified institutional placement (QIP), having appointed multiple bookrunners for the issue.

Bank of India Share Price Performance 

As of 10:26 AM on June 27, 2025, Bank of India share price was trading at ₹119.26, a 1.98% up, and up 13.73% over 6 months, and 3.47% decrease over the past year.

Conclusion

Bank of India’s ₹20,000 crore infra bond approval comes at a time when several banks are increasing long-term funding to meet infrastructure demand. These instruments are being used to bridge the gap between deposit growth and rising credit requirements.

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