Bank of India raises Rs 5,000 crore via long-term infrastructure bonds

The bank said the base issue size was Rs 2,000 crore with a green shoe option of Rs 3,000 crore, the company statement said.

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26 Aug, 2025 12:21

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Bank of India raised Rs 5,000 crore at an interest of 7.54 percent per annum through long-term infrastructure bonds on July 18 via NSE electronic bidding platform, the lender said in an exchange filing.

The bank said the base issue size was Rs 2,000 crore with a green shoe option of Rs 3,000 crore, the company statement said.

The lender said it has received a total of 127 bids, totaling Rs 15,318 crore. Out of the total, there were 57 successful bidders amounting to Rs 5,000 crore.

“The funds raised through long-term bonds will be used for funding long-term projects in infrastructure sub-sectors and affordable housing in accordance with RBI guidelines. The funds raised by the bank through this issue is not meant for financing any particular project,” the lender said.

On July 18, the shares of the bank went up by 0.24 percent to Rs 123.33 on NSE.

The lender’s board, in May, had approved capital raising of up to Rs 5,000 crore by issue of Basel III compliant additional tier 1 and tier 2 bonds of Rs 2,500 crore each.

In the same month, the lender had reported a 7 percent jump in its net profit at Rs 1,439 crore in the fourth quarter of FY24.

The gross non-performing asset (NPA) ratio of the bank in March quarter stood at 4.98 percent, as against 5.35 percent in a quarter ago period, and 7.31 percent in a year ago period.

Similarly, net NPA ratio of the lender stood at 1.22 percent as on March 31, as against 1.41 percent as on December 31, 2023, and 1.66 percent as on March 31, 2023.