Bank of India plans mega QIP to raise Rs 1,000 cr

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26 Aug, 2025 12:21

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Bank of India (BOI) is planning to raise Rs 1,000 crore through a qualified institutional placement, Mint reported.

This would be the first time in over two years that a state-run firm bank will sell shares to institutional investors.

The last time public sector banks raised funds in this manner was in December 2017, when Punjab National Bank (PNB), Union Bank of India, Syndicate Bank and Bank of Maharashtra raised money through QIPs.

Yes Securities is advising the lender on the transaction, the report said.

BoI and Yes Securities declined to comment when approached by Mint.

“Bank of India is gearing up to initiate the fundraise after the Union budget and their December quarter results," a source told the publication.

BoI will announce the results for the December quarter on January 31. The Budget will be presented on February 1.

“They have had a few large recoveries in the last quarter, including recoveries from the Essar Steel account, and that should improve their numbers, thus boosting investor sentiment." A source told the paper.

The lender may increase the transaction size if investors are keen, the report added.

In 2019, 11 companies raised Rs 5,238.14 crore through QIPs, according to information on Prime Database cited by the report.