Bank of India (BOIIN)
India / Banking
Active
Issuer Summary
Bank of India is a major state-owned commercial bank majority-owned by the Government of India, and a public-sector bank credit with a broad deposit base and government support expectations. It is a senior-leaning investment-grade bank credit supported by improved asset quality, high provision coverage, and thick capital. At the same time, profitability constraints as a state-owned bank, deposit competition, linkage to the sovereign and banking sector, and the loss-absorbing nature of AT1/Tier 2 instruments remain. The direction is one of post-improvement stability. Investors should monitor the low-cost deposit ratio, loan-to-deposit ratio, NIM, slippages, credit costs, CET1, government and RBI policy, and call, coupon, and loss-absorption terms of individual bonds.
Bank of India is a major state-owned commercial bank with the Government of India holding a majority stake. The central credit assessment focus is not on a "rapidly growing standalone bank" but on the extent to which a systemically important state-owned bank can maintain improved asset quality and capital. As of March 2026, the government's ownership was 73.38%. Fitch assigns a foreign currency long-term issuer rating of BBB- / Stable , CRISIL rates subordinated and infrastructure bonds at AA+ / Stable , ICRA assigns Basel III-compliant subordinated bonds AA+ / Stable , and India Ratings rates infrastructure and subordinated bonds IND AA+ / Stable . All ratings reflect a combination of government support expectations and standalone bank improvements.
In conclusion, Bank of India’s senior credit is viewed as investment-grade, supported by linkage to the Indian sovereign and a broad deposit base. For other Tier 1 and Tier 2 instruments, it is important to clearly distinguish regulatory loss absorption, non-viability clauses, coupon suspension, principal write-downs, and call deferral risks. While the overall issuer creditworthiness is improving, being state-owned does not automatically confer equal safety to all securities.
Fundamentals are improving. For the full year ending March 2026, net profit was INR 105.27 billion, and standalone net profit for 4Q26 was INR 30.16 billion, roughly 15% higher than the previous year. 4Q net interest income was INR 67.30 billion, the global net interest margin was 2.58%, total capital adequacy ratio was 18.01%, and CET1 ratio was 15.05%. Asset quality improved, with gross NPA ratio declining from 3.27% in March 2025 to 1.98% in March 2026, and net NPA from 0.82% to 0.56%. Provision coverage ratio remains high at 93.57%, reflecting continued recovery from prior state-bank stress cycles.
Issuer Reports
Current public reports for this issuer.