Bank of India — Important, 19-11-2024: Updates

India Ratings and Research has reaffirmed Bank of India's (BoI) ratings for its Long-Term Issuer Rating and Infrastructure Bonds at IND AA+ with a stable outlook, reflecting the bank's systemic importance and capital adequacy. The ratings are underpinned by BoI's 73.38% stake held by the government and a steady increase in market share in both advances and deposits. However, BoI's deposit profile faces potential pressure as the bank’s current account and savings account deposits have slightly lagged behind advances growth.

BoI has also issued new Basel III Additional Tier 1 Bonds rated at IND AA with a stable outlook, indicating a strong market presence and operational efficiency. The bank's improving asset quality, evidenced by a net NPA ratio reduction to 0.94%, positions it favorably for future profitability, and a current RoA of 0.94% suggests healthy operating performance. Investors should watch closely for ongoing developments, especially regarding the bank's ability to manage its deposit profile amid rising interest rate pressures in the market.