EXCLUSIVE
Bank of India to raise funds via infra bonds in 3-4 tranches from Oct, says MD
This story was originally published at 19:59 IST on 29 July 2025
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--Bk of India to raise up to INR 20 bln via infra bonds of 10-15 yrs tenure
--Bk of India to raise funds via infra bonds in 3-4 tranches starting Oct
By Kabir Sharma and Srijita Bose
MUMBAI – Bank of India will look to raise up to INR 20.00 billion through infrastructure bonds in three or four tranches in the financial year ending March, Managing Director and Chief Executive Officer Rajneesh Karnatak told Informist on the sidelines of the bank's post-earnings press conference here Tuesday.
"We cannot raise that in one go as the amount is too big," Karnatak said. "It will be in 3-4 tranches. We are looking at the second half of the year, like October maybe, as rates will be better in the market."
The bank will issue the bonds, expected to be of 10 to 15 years' tenure, starting October as interest rates are expected to cool by then, Karnatak said. Infrastructure bonds are raised to finance the construction of highways, ports, railways, airport terminals, bridges, tunnels, pipelines, and the like.
The state-owned bank also has approval from the board to raise up to INR 50.00 billion Tier-1 and Tier-2 capital in the current financial year, the management said. However, the bank is adequately capitalised and will not be looking to raise funds anytime soon, it added.
The public-sector bank reported a net profit of INR 22.52 billion for the June quarter, up 32% on year but down 14% on quarter. The bank released its financial results in the post-market hours. Tuesday, shares of the bank closed 0.6% higher at INR 112.17 on the National Stock Exchange. End
Edited by Rajeev Pai
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