Bank of India has received rating actions from CRISIL Ratings, with the agency reaffirming its AA/Stable ratings on existing Basel-III compliant bonds while assigning a new AA/Stable rating to ₹10,000 crore infrastructure bonds. The rating review reflects the bank's strengthening financial position and continued government support.

Rating Actions and Bond Details

CRISIL Ratings has taken multiple rating actions across Bank of India's debt instruments:

Strong Government Support Framework

CRISIL Ratings emphasized the expectation of strong government support as a primary rating driver. The Government of India maintains a 73.38% stake in the bank as of September 30. The rating agency noted that the bank received capital infusions in previous fiscal years, contributing to its capital adequacy ratios.

Operational Performance and Asset Quality

Bank of India demonstrated operational metrics with gross advances reaching ₹7.10 lakh crore, representing 14.00% year-on-year growth. Total business stood at ₹15.60 lakh crore, registering 11.80% growth on a year-on-year basis.

CRISIL highlighted the bank's improving asset quality metrics. Gross non-performing assets declined to 2.50% as of September 30, from 3.30% as of March 31.

Outlook

CRISIL maintained a stable outlook on Bank of India's ratings, citing the expected support from the Government of India and the bank's improving operational metrics. The rating agency identified sustained improvement in asset quality and profitability as potential factors for future rating actions.

Bank of India received a comprehensive credit rating reaffirmation from CARE Ratings Limited on December 18, 2025, covering its entire portfolio of Basel-III compliant Tier II Bonds and Infrastructure Bonds worth ₹50,000 crores. The rating agency maintained an 'A+' rating with stable outlook across all bond series, reflecting confidence in the bank's financial stability and government backing.

Comprehensive Rating Portfolio

CARE Ratings' evaluation encompassed multiple bond instruments with significant aggregate value:

The rating actions included reaffirmation of six existing bond series and fresh ratings for new Tier-II bond issues and Certificate of Deposit programs, demonstrating comprehensive coverage of the bank's debt instruments.

Strong Financial Performance Metrics

Bank of India's improved financial performance underpinned the rating reaffirmation. Key performance indicators show substantial growth:

The bank's asset quality parameters also showed improvement with Gross NPA ratio declining to 3.27% in FY25 from 4.98% in FY24, while Net NPA ratio decreased to 0.82% from 1.22%.

Government Support and Market Position

CARE Ratings emphasized the bank's strong government backing, with Government of India holding 73.38% shareholding as of September 2025. The rating agency expects continued support given Bank of India's significance as the sixth-largest nationalized bank with advances of ₹6.96 lakh crores and total business of ₹15.49 lakh crores.

The bank operates through an extensive network of 5,375 branches in India and 22 overseas branches, with 65% of domestic branches serving rural and semi-urban areas, providing strong franchise value.

Rating Outlook and Sensitivities

The stable outlook reflects CARE's expectation of continued stable financial performance with gradual improvement in asset quality parameters. However, the rating agency noted potential pressure on Net Interest Margin in FY26 due to faster repricing of advances compared to deposits.

Positive rating factors include improvement in profitability with Return on Total Assets remaining above 0.8% and sustained improvement in asset quality parameters. Negative factors could include decline in profitability below 0.30% ROTA or deterioration in capitalization levels.