Ind-Ra upgrades issuer rating for Bank of India, cites capital position

State-owned lender has since FY21 reported consistent profitability, says agency

India Ratings and Research (Ind-Ra) has upgraded Bank of India’s (BoI) long-term issuer rating from “AA” from “AA+”, reflecting the state-owned lender’s capital position and operating buffer.

The outlook is stable, said Ind-Ra in a statement. BoI, since FY21, has reported consistent profitability which, along with timely capital raise, has largely led to an improvement in its Common Equity Tier 1 to 12.97 per cent at end-2QFY23. This has resulted in a total capital adequacy ratio (CAR) of 15.51 per cent and both CET1 and CAR compare favorably with peer banks.

The rating action considered the BoI’s ability