Bank of India (BOI) has announced a reduction in its Marginal Cost of Funds-based Lending Rate (MCLR) across all tenors, signaling a potential easing of borrowing costs for its customers. The state-owned lender will implement this change starting July 1, 2025.

Key Points of the Rate Adjustment

• MCLR Reduction: Bank of India has cut its MCLR by 5 basis points (bps) across all tenors.
• New 1-Year MCLR: The benchmark 1-year MCLR has been revised downward to 9.00% from the previous 9.05%.
• Implementation Date: The new rates will come into effect on July 1, 2025.

Impact on Retail Loans

The bank has also provided details on its retail loan pricing:

• Fixed Rate Spread: Set at 1.50% for retail loans.
• Benchmark for Fixed-Rate Retail Loans: These loans will be benchmarked to the 3-year MCLR, which now stands at 10.65%.

Other Rate Information

• Repo-Based Lending Rate: Remains unchanged, indicating that the bank's decision is specific to its MCLR-linked products.

This move by Bank of India could potentially lead to slightly lower interest rates for borrowers with MCLR-linked loans. However, the actual impact on individual borrowers may vary depending on their loan terms and reset dates.

The reduction in MCLR, albeit small, comes at a time when the banking sector is navigating through various economic factors. While this adjustment might provide some relief to borrowers, it's important to note that the overall lending environment remains subject to broader market conditions and regulatory policies.

Customers with existing loans or those considering new borrowings from Bank of India are advised to contact their local branch or relationship manager for personalized information on how these changes might affect their specific loan products.

Bank of India , one of India's leading public sector banks, has successfully completed a significant infrastructure bond issuance, raising ₹10,000 crore through its Long Term Infrastructure Bonds Series IV. The issue, which opened and closed on December 23, 2025, demonstrates strong investor confidence in the bank's infrastructure financing capabilities.

Bond Issue Performance

The infrastructure bond issue witnessed exceptional market response, with the bank receiving overwhelming investor interest:

Issue Structure and Details

The bonds are structured as unsecured, subordinated, redeemable, non-convertible, taxable, and listed instruments with a face value of ₹1 lakh each. The bank issued a total of 10,00,000 bonds, with the issue opening and closing on the same day - December 23, 2025.

Strategic Infrastructure Financing Initiative

This successful bond issuance represents a significant milestone in Bank of India's infrastructure financing strategy. The substantial oversubscription of 3.06 times against the base issue size reflects strong institutional investor confidence in the bank's credit profile and India's infrastructure development prospects.

Previous Financial Performance Context

The successful bond issuance builds upon Bank of India's strong financial performance, including an 82.5% year-on-year increase in Q4 net profit reaching ₹2,626.00 crore, along with improved asset quality metrics that have strengthened the bank's overall financial position.

Market Implications

The successful completion of this infrastructure bond issue positions Bank of India as a key player in India's infrastructure financing landscape. The funds raised will support long-term infrastructure projects across various sectors, contributing to the nation's ongoing infrastructure development initiatives while providing the bank with stable, long-term funding sources for critical infrastructure financing needs.