Bank of India Shares Rise After Board Approval to Raise ₹5,000 Crore via Bonds

Mumbai, May 2, 2025: Bank of India (BOI) shares gained in early trading on Friday following the announcement that the bank has received board approval to raise up to ₹5,000 crore through the issuance of Basel-III compliant Tier-I and Tier-II bonds in the financial year 2025–26. The move is aimed at strengthening the bank’s capital adequacy and supporting future growth.

Stock Gains After Fundraising Nod

Bank of India stock was trading at ₹116.65, up by 1.35% or ₹1.55 from its previous close of ₹115.10 on the Bombay Stock Exchange (BSE). The scrip opened at ₹115.10 and recorded an intraday high of ₹117.25. As of the latest update, 41,613 shares had been traded on the counter.

The BSE Group ‘A’ stock has a 52-week high of ₹156.40 (recorded on May 2, 2024) and a 52-week low of ₹90.00 (recorded on January 13, 2025). In the past week, the stock has fluctuated between ₹121.55 and ₹113.75. Bank of India currently holds a market capitalization of ₹52,970.29 crore.

₹5,000 Crore Fundraising Plan to Strengthen Capital Base

At a board meeting held on April 30, 2025, Bank of India’s directors approved a plan to raise ₹2,500 crore each through Tier-I and Tier-II bonds under the Basel-III framework during FY 2025–26. The fundraising is expected to bolster the bank’s capital structure and meet future business expansion needs, while ensuring regulatory compliance with the Reserve Bank of India’s capital adequacy norms.

Strategic Focus on Growth and Compliance

Bank of India, a leading public sector lender, offers a comprehensive suite of financial services including personal banking, corporate finance, MSME lending, rural banking, NRI services, and digital banking solutions. The decision to raise capital through bond issuance aligns with its strategy to enhance operational efficiency and support credit growth across sectors.

The shareholding pattern of the bank indicates promoters hold 73.38%, with institutional investors at 19.79% and non-institutional investors holding 6.83%.