Bank of India raises Rs 1,500 crore through additional Tier 1 bonds

The Mumbai based lender is likely to come up with another offering of AT1 bonds before the close of the current financial year (FY23)

Public sector lender Bank of India has raised capital worth Rs 1,500 crore through additional tier I bonds (AT1 bonds) to meet regulatory norms and support business growth.

Following a strong response, the coupon was fixed at a finer rate of 8.57 per cent against an indicative range of 8.75-9.0 at the start of bidding, bond dealers said.

Its Capital adequacy ratio (CAR) stood at 15.51 per cent as of September 30, 2022. With capital raising via  AT1 bonds, CAR will be close to 16 per cent, bank executives said. Its loan book rose by 17.89 per cent Year on Year (YoY)