Bank of India shares decline nearly 2% as it raised ₹2,690 crore via infrastructure bonds

“Bank received total bids amounting to ₹8,850 crore in response from investors, and the issue was oversubscribed by 5.90 times against the base issue size of ₹1,500 crore,” it said in an exchange filing.

At 9:55 AM, shares of the bank were trading at ₹97.30 apiece on BSE, falling 1.92%.

The public sector bank said the funds raised through these long-term bonds will be used for funding long-term projects in infrastructure sub-sectors and affordable housing in accordance with the Reserve Bank of India’s (RBI) guidelines. The funds raised by the bank through this issue are not meant for financing any particular project.

Bank of India had reported a 35% jump in its net profit to ₹2,517 crore for the December quarter on account of a decline in bad loans, a rise in net interest income, and income from treasury operations. The lender had reported a net profit of ₹1,870 crore in the year-ago period.

The PSU’s NII expanded 11% year-on-year to ₹6,070 crore in Q3FY25. However, the net interest margin (NIM) moderated to 2.80%, from 2.85% in Q3FY24. The bank has guided the NIM at the range of 2.85-2.89% for the current fiscal year.

Operating expenses during Q3 FY25 were reported at ₹4,114 crore, rising from ₹3,653 crore in Q3 FY24 but lower than ₹4,355 crore in Q2 FY25.

The bank had demonstrated enhanced asset quality, with its slippage ratio declining to 0.19% from 0.26% in Q3 FY24. Credit cost also improved, falling to 0.39% from 0.46% in the corresponding quarter of the prior year.