Bank of India has completed the full redemption of its 9.04% Additional Tier I Bonds Series VI, exercising its call option to repay the entire Rs 750 crores principal amount along with broken period interest to bondholders on January 28, 2026.

Bond Redemption Details

The bank exercised its call option under Regulation 57 of SEBI (LODR) Regulations, 2015, for the complete redemption of the bonds carrying ISIN INE084A08136. The redemption covered all 7,500 bonds in the series, leaving no outstanding amount.

Interest Payment Structure

The bank made the final interest payment as part of the redemption process, covering the broken period from the last interest payment date. The last regular interest payment was made on April 2, 2025, and the broken period interest amounted to Rs 56,09,75,427.

Regulatory Compliance

The redemption was executed in accordance with SEBI regulations, with Bank of India providing proper notification to both NSE and BSE. The bank had previously communicated its intention to exercise the call option through a letter dated December 22, 2025, ensuring transparency and regulatory compliance throughout the process.

Impact on Capital Structure

With the complete redemption of the Additional Tier I Bonds Series VI, Bank of India has successfully closed this particular debt instrument from its capital structure. The exercise of the call option demonstrates the bank's active capital management approach and its ability to optimize its funding costs when market conditions are favorable.

Bank of India delivered a strong performance in Q3FY26, demonstrating robust growth across key business metrics while maintaining improved asset quality. The bank's comprehensive results showcase balanced expansion in both advances and deposits, supported by strategic initiatives and prudent risk management.

Financial Performance Highlights

The bank's financial metrics reflected strong operational performance during the quarter:

Global Net Interest Margin (NIM) improved sequentially by 16 basis points to 2.57% in Q3FY26, reflecting the bank's focus on optimizing its asset-liability mix and portfolio management strategies.

Business Growth Momentum

Bank of India achieved significant growth across its business segments:

The Retail, Agriculture and MSME (RAM) segment showed particularly strong performance, with advances increasing 18.05% YoY from Rs.3.12 lakh crore to Rs.3.68 lakh crore, constituting 58.54% of total advances.

Asset Quality Improvement

The bank demonstrated continued improvement in asset quality parameters:

The bank's Capital Adequacy Ratio (CRAR) strengthened to 17.09% as of December 31, 2025, compared to 16.00% in the previous year, reflecting improved capital position.

Strategic Initiatives and Product Launches

Bank of India introduced several new products and services during the quarter:

Solar and Agriculture Focus:

• BOI Surya Shakti Scheme for solar irrigation systems, cold storage, and agri-processing facilities
• Enhanced focus on allied agriculture and food processing segments

Gig Economy Products:

• Star Gig Grow Loan for MSME requirements of registered gig workers
• GIG GearUP Loan for retail financing needs of gig workers
• Interest rates ranging from 9.5% to 10.5% with loan amounts up to Rs.5 lakh for SME segment

Credit Card Variants:

• Celestia Credit Card (Rupay Platinum Contactless Metal Card) for premium customers
• Rupay Women's Credit Card with features specifically designed for women

Deposit Composition and Strategy

The bank's deposit portfolio showed the following composition:

Technology and Digital Transformation

The bank continued its digital transformation journey with significant investments:

• 29 digital business journeys now live (24 loan-focused, 5 liability-focused)
• Implementation of CTS Continuous Clearing for faster cheque processing
• Project Star Aditya for data analytics, AI, and machine learning capabilities
• Automation initiatives saving approximately 50,000 man hours in nine months
• IT expenditure representing 10% of total operating expenses

Forward Guidance and Outlook

Management provided guidance for FY26:

The bank expects to maintain its growth trajectory while focusing on mobilizing low-cost deposits, accelerating high-yielding advances growth, and maintaining prudent credit underwriting standards. Recovery targets include Rs.7,200-7,300 crore for the full year, with written-off account recoveries targeted at Rs.3,000 crore annually.

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