Bank of India credit rating has been reaffirmed at IVR AAA/Stable by Infomerics Ratings for the public-sector lender’s Rs 1,800 crore Basel III-compliant Tier-II bond programme. Bank of India informed the stock exchanges about the rating agency’s August 19, 2026 press release through a BSE filing on the same date.

Infomerics said the rating reflects the bank’s sovereign ownership and expected continued support from the Government of India, sustained improvement in earnings, diversified loan portfolio, established market reach and comfortable capitalisation. The analytical approach was standalone.

Earnings and capital support rating

Bank of India’s FY26 net profit rose about 14% to Rs 10,527 crore from Rs 9,219 crore in FY25, while operating profit increased about 4% to Rs 17,049 crore. In Q1FY27, net profit grew about 36% year-on-year to Rs 3,068 crore and operating profit rose about 26% to Rs 5,051 crore.

The Government of India held a 73.38% stake in Bank of India as of June 30, 2026. Infomerics also cited the lender’s improving capital position: its capital adequacy ratio increased to 18.69% in Q1FY27 from 17.39% as of June 30, 2025, while CET-1 improved to 15.97% from 14.52%.

Asset-quality indicators continued to improve, although the rating agency described the bank’s asset quality as moderate. Gross NPA declined to 1.81% as of June 30, 2026, compared with 1.98% at March 31, 2026 and 2.92% a year earlier. Net NPA improved to 0.51% from 0.75% year-on-year. Fresh slippages stood at Rs 1,778 crore in Q1FY27 against Rs 2,080 crore in Q1FY26.

  • Domestic advances and the retail, agriculture and MSME portfolio grew 19% and 20% year-on-year, respectively, in Q1FY27.
  • The cost of deposits declined to 4.69% from 4.85%, while the cost of funds fell to 4.45% from 4.66%.
  • The bank’s network included 5,535 domestic branches and 38,273 customer touch points as of March 31, 2026.

Deposit mobilisation remains a monitorable

Infomerics identified deposit growth relative to advances as a rating constraint. Bank of India’s credit-deposit ratio increased to 83.28% as of June 30, 2026 from 83.19% at March 31, while its CASA ratio moderated to 36.68% from 37.64% over the same period.

The agency assessed liquidity as strong and retained a stable outlook, supported by expected government support, advances growth, a healthy resource profile, comfortable capitalisation and improving asset quality. Downward rating sensitivities include weaker linkages with the government, a material rise in slippages that hurts earnings, or a material decline in capital adequacy from current levels.

Source: BSE corporate announcement.