 "Bank of India's board approves plan to raise Rs 5,000 cr via infra bonds")
State-owned Bank of India (BoI) on Thursday said its board has approved Rs 5,000 crore fund raising through infrastructure bonds.
Long Term Infra Bonds to the tune of Rs 5,000 crore would be raised during the fourth quarter of FY25, BoI said in a regulatory filing.
Domestic investors have shown a lot of interest in such bond issuance by banks, and many lenders have exercised this option for raising resources in the recent past.
The advantage of infrastructure bonds is that they are exempt from regulatory reserve requirements such as Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). So, infrastructure bond proceeds can be fully deployed for lending activities.
Banks have been preferring infrastructure bonds over AT-1 and Tier-2 bonds, as they are better priced.
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