Bank of India has officially announced that its board of directors has approved a substantial fundraising initiative worth ₹7,500 crore through Basel-III compliant bonds during FY 2026-27. The formal approval was communicated to stock exchanges through an official regulatory filing under Regulation 30, demonstrating the bank's commitment to transparent corporate governance and regulatory compliance.

Board Meeting Details and Approval

The board meeting was conducted on April 30, 2026, commencing at 3:30 PM and concluding at 5:50 PM. During this session, the directors considered and approved the capital raising proposal, marking a significant milestone in the bank's strategic capital strengthening initiative. The bank formally communicated this decision to both NSE and BSE through reference number HO:IRC:SVM:2026-27:28.

Capital Structure and Bond Allocation

The approved fundraising comprises a strategic mix of regulatory capital instruments designed to enhance the bank's capital adequacy position. The board has specifically allocated the ₹7,500 crore fundraising between Tier-I and Tier-II capital instruments to optimize regulatory compliance and financial flexibility.

Regulatory Framework and Compliance

The Basel-III compliant bonds will serve as important regulatory capital instruments that help the bank meet international capital adequacy standards. The Tier-I bonds worth ₹2,500 crore will contribute to additional tier-1 capital, while the larger Tier-II bond issuance of ₹5,000 crore will strengthen the bank's tier-2 capital base. This strategic allocation ensures optimal regulatory capital ratios while providing operational flexibility.

Implementation Timeline and Market Strategy

With the board approval secured and formal regulatory notifications completed, Bank Of India is positioned to execute this capital raising exercise during FY 2026-27. The bank's proactive approach to capital planning allows for strategic timing of bond issuances based on market conditions and investor appetite, ensuring optimal pricing and successful placement of these regulatory capital instruments.

Bank of India has announced selective adjustments to its lending rate structure effective from May 1, 2026, through an official regulatory filing under SEBI Regulation 30. The public sector bank has maintained stability in its key benchmark rates while implementing targeted changes to its fixed rate offerings.

MCLR and RBLR Rates Remain Unchanged

The bank has decided to keep both its Marginal Cost of Fund based Lending Rate (MCLR) and Repo Based Lending Rate (RBLR) unchanged effective from May 1, 2026. This decision reflects the bank's current funding cost assessment and market positioning strategy.

The MCLR structure shows a progressive increase from 7.70% for overnight tenor to 8.90% for the 3-year tenor, maintaining the bank's established pricing framework across different maturity periods.

Fixed Rate Spread Structure Revised

While keeping benchmark rates stable, Bank of India has implemented changes to its Fixed Rate Spread (FRS) structure across various tenors effective from May 1, 2026. The revised FRS framework introduces a differentiated pricing approach based on loan tenure.

The new FRS structure shows an incremental increase from 8.75% plus Customer Risk Premium (CRP) for 1-year tenor to 10.00% plus CRP for 5-year tenor. For tenors exceeding 5 years, the bank has introduced a special structure of 8.75% plus tenor premium plus CRP.

Regulatory Compliance and Official Communication

The rate changes have been formally communicated to both National Stock Exchange of India Ltd. and BSE Ltd. through an official notification dated April 29, 2026. The communication, bearing reference number HO:IRC:SVM:2026-27:29 and signed by Company Secretary Usha Ramsinghani, ensures full transparency in the bank's pricing policy adjustments as required under regulatory disclosure obligations.

The selective approach to rate revision demonstrates the bank's strategic focus on maintaining competitive positioning in shorter-term lending while adjusting pricing for medium to long-term fixed rate products. The unchanged MCLR and RBLR rates provide stability for floating rate loan customers, while the revised FRS structure affects fixed rate borrowers across different tenure categories.