Bank of India has announced selective changes to its lending rate structure, maintaining some rates while adjusting others effective April 1, 2026. The public sector bank communicated these changes through a regulatory filing under SEBI Regulation 30, indicating a measured approach to interest rate management.

MCLR and RBLR Rates Maintained

The bank has decided to keep its Marginal Cost of Fund based Lending Rate (MCLR) and Repo Based Lending Rate (RBLR) unchanged from April 1, 2026. The current MCLR structure across different tenors provides borrowers with predictable pricing for various loan products.

Base Rate Reduction Announced

Bank of India has implemented a significant reduction in its Base Rate, lowering it from 10% to 9.50% per annum. This 50 basis points reduction will be effective from April 1, 2026, to June 30, 2026, providing temporary relief to borrowers whose loans are linked to the Base Rate structure.

Fixed Rate Spread Structure Revised

The bank has also updated its Fixed Rate Spread (FRS) framework across different tenor categories. The revised structure incorporates Customer Risk Premium (CRP) components and tenor-based pricing.

Regulatory Compliance and Implementation

The rate changes have been communicated to both the National Stock Exchange and BSE Limited as part of the bank's regulatory disclosure obligations. The notification, signed by Company Secretary Usha Ramsinghani, ensures transparency in the bank's pricing decisions and provides clear guidance to borrowers and investors regarding the effective implementation timeline.

These selective rate adjustments demonstrate Bank of India's strategic approach to balancing competitive lending rates with prudent risk management, particularly through the maintained MCLR structure while providing targeted relief through Base Rate reduction.

Bank of India has completed the full redemption of its 9.30% Additional Tier I Bonds Series VII, exercising its call option to repay the entire principal amount of ₹602 crores to bondholders on March 30, 2026. The redemption was conducted in compliance with Regulation 57 of SEBI (LODR) Regulation, 2015.

Bond Redemption Details

The bank redeemed all 6,020 bonds under the series, ensuring complete closure of this debt instrument. Along with the principal repayment, Bank of India also paid broken period interest amounting to ₹55,67,92,268 to the bondholders.

Regulatory Compliance

The redemption process was executed under the provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015, specifically Regulation 57. The bank had previously communicated its intention to exercise the call option through a letter dated February 17, 2026.

Interest Payment Timeline

The last regular interest payment on these bonds was made on April 2, 2025. The broken period interest calculation covered the period from the last interest payment date until the redemption date of March 30, 2026.

Complete Settlement

With this redemption, Bank of India has fully settled its obligations under the 9.30% BOI Additional Tier I Bonds Series VII. The outstanding amount post-redemption stands at nil, indicating complete closure of this particular bond series. The transaction represents the bank's strategic decision to exercise its call option rather than allowing the bonds to continue until their original maturity date.