Bank of India Board approves to raise Rs 5,000 crore via infra bonds
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.
Bank of India Board approves to raise Rs 5,000 crore via infra bonds
State-owned Public Lender, Bank of India said its board has approved Rs 5,000 crore fundraising through infrastructure bonds. Long Term Infra Bonds to the tune of Rs 5,000 crore would be raised during the fourth quarter of FY25, it 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 the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
So, infrastructure bond proceeds can be fully deployed for lending activities. Major Banks have been preferring infrastructure bonds over AT-1 and Tier-2 bonds, as they are better priced.
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