Bank of India to Raise ₹20,000 Crore Through Long-Term Infrastructure Bonds

Mumbai, 26 June 2025: Bank of India (NSE: BANKINDIA, BSE: 532149) has secured approval from its board to raise up to ₹20,000 crore through the issue of Long-Term Infrastructure Bonds during the financial year 2025-26. The decision was made during the board meeting held earlier today, as per the bank’s official communication with stock exchanges.

Fundraising Through Long-Term Bonds for Strategic Lending

The proposed capital will be mobilised via Long-Term Infrastructure Bonds, financial instruments typically employed by banks to finance infrastructure and affordable housing projects in accordance with RBI guidelines. These bonds also serve to boost long-term capital availability while enjoying exemptions from certain regulatory requirements such as the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

Key Board Meeting Details

Move Aims to Strengthen Capital Position and Credit Growth

This resolution is in line with Bank of India’s broader capital planning objectives, supporting its efforts to maintain strong credit growth, comply with Basel III capital norms, and increase its exposure to infrastructure lending. The funds will help the bank align its balance sheet with long-term growth priorities.

Regulatory Framework and Compliance

The issuance of Long-Term Infrastructure Bonds is permitted under the Reserve Bank of India’s Master Directions on Basel III Capital Regulations and Section 24 of the Banking Regulation Act, 1949, which allows such bonds to be excluded from SLR computation. The bank’s decision also adheres to the stipulations outlined in the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, covering material resolutions passed by the board.

About Bank of India

Bank of India, a prominent public sector bank headquartered in Mumbai, is listed on both the NSE and BSE. The bank offers a diverse range of financial products and services, catering to both domestic and global customers. Over the years, it has regularly raised capital through various Tier I and Tier II instruments to support its business expansion and regulatory obligations.

Capital Raise to Support Infrastructure Book and Government Growth Plans

This upcoming bond issue is expected to enhance Bank of India’s infrastructure loan portfolio and contribute to government-led development initiatives, ensuring better capital alignment and resource planning for long-term growth.

REF: https://nsearchives.nseindia.com/corporate/BANKINDIA2_26062025145543_BMOutcomeLongTermInfraBondsIssue.pdf

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