Bank of India Share Price Surges Over 2%; Secures ₹2,500 Crore Via 10-Year Tier-2 Bonds

Bank of India has raised ₹2,500 crore through Tier-2 bonds maturing in 10 years, with the cut-off set at 7.28%, as per Moneycontrol report.  

The amount includes a ₹1,500 crore greenshoe option. The bonds come with a call option after 5 years and annually thereafter. Pay-in and allotment will take place on December 12. 

How the Bidding Played Out 

As per the report, the investors bids were spread across narrow yield points. At 7.27%, bids totalled ₹2,280 crore.  

At 7.28%, the figure was ₹2,655 crore. Bids rose to ₹3,055 crore at 7.29%, and ₹3,562 crore at 7.30%. The highest volume came in at 7.31%, amounting to ₹3,882 crore. The cut-off settled at 7.28% based on overall demand. 

Other Activity in the Market 

On the same day, Housing and Urban Development Corporation (Hudco) raised ₹1,905 crore through 7-year bonds priced at 6.98%.  

Hudco had aimed for up to ₹2,500 crore. The day also saw investors redirect funds after PFC and SIDBI withdrew planned issuances worth ₹11,500 crore on Tuesday, leaving fewer competing options in the market. 

Recent Moves by Banks 

Banks have stepped up fundraising through the debt market in the past few months after a slow start to the financial year. State Bank of India raised ₹7,500 crore in October via Tier-2 bonds at 6.93%.  

ICICI Bank raised ₹3,945 crore in November through 15-year Tier-2 bonds at 7.40%, following its June issue of ₹1,000 crore at 7.45%. 

Other Bond Structures 

November also saw Canara Bank raise ₹3,500 crore through AT-1 bonds at 7.55%, marking the first such issue by a bank in nearly a year.  

Axis Bank raised ₹5,000 crore through a 10-year infrastructure bond at 7.27%, adding to supply in longer-tenure debt. 

Read More: Public Sector Banks Write Off Loans Worth ₹6.15 Lakh Crore Over 5 Years! 

Bank of India Share Price Performance  

As of December 11, 2025, 10:30 am, Bank of India share price was trading at ₹141.54, a 2.45% increase from the previous closing price. 

Conclusion 

With Bank of India’s issue attracting steady interest and several lenders returning to the market, recent activity points to a phase of consistent fundraising across various bond categories. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   

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