Bank of India’s Credit Ratings Reaffirmed by CRISIL

Bank of India (BOI) on August 20, 2025 announced that CRISIL Ratings Limited had reaffirmed its credit ratings for the bank’s Tier I and Tier II bonds as well as its certificates of deposit. This reaffirmation reflects the bank’s stable outlook, strong government backing, and improving financial fundamentals, though certain challenges in asset quality and profitability.

Ratings Reaffirmed
• Certificate of Deposits (₹30,000 crore): CRISIL A1+
• Tier I Bonds (₹2,852 crore, Basel III): CRISIL AA/Stable
• Tier II Bonds (₹6,800 crore, Basel III): CRISIL AA+/Stable

All ratings have been reaffirmed with a stable outlook, reflecting confidence in the bank’s resilience and government support.

Key Highlights
• Government Support: The Government of India retains a 73.4% stake in BOI, reinforcing the expectation of sovereign backing.

• Strong Market Position: Gross advances stood at ₹6.7 lakh crore and total business at ₹15.1 lakh crore as of June 30, 2025, supported by 5,328 branches, including 22 overseas.

• Solid Capital Base: BOI reported consolidated Tier I ratio of 15.6% and CRAR of 17.9% as of June 2025, comfortably above regulatory requirements.

• Improving Asset Quality: GNPA reduced to 2.92% (June 2025) from 5.0% in FY24, with better recoveries across MSME and agriculture segments.

• Profitability Growth: FY25 consolidated PAT rose 46% YoY to ₹9,339 crore; Q1 FY26 standalone PAT increased 32% YoY to ₹2,252 crore.

ESG Commitment
BOI continues to strengthen its ESG (Environmental, Social, and Governance) profile through initiatives such as green deposits, enhanced genderdiversity (29% female workforce), low attrition, and a governance structure with one-third independent directors.

About CRISIL
CRISIL Ratings Ltd, a subsidiary of CRISIL Ltd, is a leading credit rating agency in India, providing credit ratings for a wide range of debt instruments and entities.

Who Use CRISIL
Investors, lenders, and other market participants rely on CRISIL ratings to assess the risk associated with lending money or investing in debt instruments.

How CRISIL Rate
Ratings are conveyed through a standardized scale, with higher ratings (like AAA) indicating lower risk of default and lower ratings (like D) indicating higher risk or even default.

Significance of CRISIL Rating
A CRISIL rating provides an indication of the credit quality of a company or instrument, helping investors understand the potential for returns and the likelihood of timely repayment. CRISIL ratings help investors make informed decisions by providing a standardised measure of credit risk, allowing them to compare different investment options and assess the potential for default.

Outlook of CRISIL
CRISIL has maintained a stable outlook, citing government support and improving fundamentals. The rating agency highlighted that sustained profitability (RoA >0.8%) and stronger capitalisation could lead to upgrades, while weakening asset quality or reduced capital buffers may trigger downgrades.

About Bank of India:
Founded in 1906, BOI is among India’s largest public sector banks with a significant domestic and international presence. The bank remains committed to driving financial inclusion and delivering long-term value to stakeholders.