Bank of India Completes Full Redemption of ₹602 Crore Additional Tier I Bonds Series VII

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.

Parameter	Details
ISIN	INE084A08144
Redemption Type	Full
Reason for Redemption	Call Option Exercised
Redemption Date	30.03.2026
Quantity Redeemed	6,020 bonds
Amount Redeemed	₹602 crores
Outstanding Amount	Nil
Broken Period Interest	₹55,67,92,268

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.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.79%	-6.92%	-20.95%	+11.66%	+26.18%	+99.08%

Bank of India has disclosed a monetary penalty imposed by the Reserve Bank of India (RBI) amounting to Rs. 58.50 lakhs for regulatory violations. The disclosure was made on March 27, 2026, in compliance with SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Penalty Details and Violations

The RBI imposed the monetary penalty for two specific regulatory contraventions committed by the bank:

Violation Type:	Details
PSL Account Charges:	Collecting ad-hoc service charges/inspection charges/processing charges in Priority Sector Lending accounts up to Rs. 25,000
TDR Interest Payment:	Not paying applicable rate of interest in Term Deposit Receipts for the period from maturity date till encashment date
Penalty Amount:	Rs. 58,50,000 (Rupees Fifty Eight lakh Fifty Thousand Only)
Order Receipt Date:	March 27, 2026

Regulatory Compliance and Disclosure

The bank made the disclosure under Regulation 30(4) read with Schedule III, Part A, Para A, Sub-para 20 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. This regulation mandates listed entities to disclose material events and information that could impact investor decisions.

Financial Impact Assessment

According to the bank's official statement, the monetary penalty imposed by RBI has no material impact on the financial operation or other activities of the bank. The disclosure was signed by Company Secretary Usha Ramsinghani and communicated to both the National Stock Exchange of India and BSE Limited.

Regulatory Context

The penalty highlights RBI's continued focus on ensuring compliance with Priority Sector Lending guidelines and proper interest payment mechanisms for Term Deposit Receipts. Banks are required to maintain strict adherence to prescribed service charge structures for PSL accounts and ensure timely interest payments on matured deposits.