Bank of India Raises ₹5,000 Crore in Oversubscribed Bond Issue

28 Nov 2024 , 12:29 AM

Bank of India has raised ₹5,000 crore by issuing long-term infrastructure bonds through private placement on November 27, 2024. The bond issue was oversubscribed 6.85 times, with bids totaling ₹13,700 crore, significantly higher than the base issue size of ₹2,000 crore.

The bank accepted bids for ₹5,000 crore at an annual coupon rate of 7.41%. The issuance involves 5 lakh bonds, each with a face value of ₹1 lakh. The bonds are unsecured, subordinated, redeemable, non-convertible, taxable, and will be listed on the exchange.

The subscription window opened and closed on November 27, 2024, with the allotment date set for November 29, 2024. 97 bids were received, with 43 bids accepted during the bidding process on the NSE Electronic Bidding Platform.

This issuance is aimed at helping the bank raise capital for infrastructure financing activities. For Q2 FY2024, Bank of India reported a 62.8% year-on-year increase in net profit, reaching ₹2,373.7 crore, up from ₹1,458.4 crore.

Net Interest Income (NII) grew by 4.3% to ₹5,985.2 crore, compared to ₹5,739.5 crore in the same period last year. The bank also recorded a decline in Non-Performing Assets (NPA), reflecting improved asset quality.