Bank of India has announced its decision to exercise the call option on its 9.04% Additional Tier 1 Bonds Series VI, setting January 13, 2026 as the record date for this corporate action. The announcement was made through a regulatory filing dated December 22, 2025, in compliance with Regulation 60 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Bond Details and Terms

The bonds in question are the 9.04% Additional Tier 1 Bonds Series VI with ISIN number INE084A08136. These bonds were originally issued on January 28, 2021, pursuant to the terms mentioned in the Information Memorandum dated January 27, 2021.

Call Option Exercise Process

The bank has decided to exercise its call option on these bonds, with the call option becoming exercisable on January 28, 2026. As per the announcement, Tuesday, January 13, 2026 has been declared as the record date for determining eligible bondholders.

On January 28, 2026, Bank of India will make payment of both the broken period interest and the call option amount (principal) to holders of the bonds as on the record date. This payment structure ensures that bondholders receive their due interest for the period along with the principal redemption.

Impact on Bondholders

Upon completion of the payment process on January 28, 2026, Bank of India's liability towards the bondholders will cease entirely. The bank has clarified that all bondholder rights, including payment obligations and other related rights, will stand extinguished once the call option amount and broken period interest are paid to eligible bondholders.

This call option exercise represents a standard corporate action for Additional Tier 1 bonds, allowing the issuing bank to redeem the securities at predetermined dates as specified in the original bond terms and conditions established during the 2021 issuance.

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.