Bank of India Raises ₹2,500 Cr via Basel III Tier II Bonds: Capital Buffer Bolstered

Bank of India successfully tapped the debt market by issuing ₹2,500 crore in Basel III Tier II bonds, a strategic move to fortify its capital base. This issuance underscores the PSU bank's proactive capital management in a high-growth lending environment.

Issuance Highlights

Tranche size: ₹2,500 crore at a coupon of around 7.5-8%, with 10NC10 structure (non-callable for 10 years).

Proceeds augment Tier II capital, lifting CAR above 13% to support ₹3 lakh crore loan book expansion.

Oversubscribed by 2-3x, reflecting strong investor appetite for PSU bank paper amid falling yields.

This capital infusion aligns with RBI's Basel III norms, enabling robust credit disbursal to MSMEs and retail amid economic rebound.

Sources: BSE India, Moneycontrol