Credit Rating

Wm air* itarin Div NA.' Bank of India WW1 *1-f T. Ref. No.:HO:IRC:SVM:2026-27:125(cid:9) Date: 17-07-2026 Scrip Code: BANKINDIA(cid:9) Scrip Code: 532149 (cid:9) The Vice President — Listing The Vice-President — Listing (cid:9) Department, Department, (cid:9) National Stock Exchange of India Ltd., BSE Ltd., (cid:9) Exchange Plaza, 25, P.J. Towers, Dalal Street, (cid:9) Bandra Kurla Complex, Bandra East, Mumbai 400 001. Mumbai 400 051, Dear Sir/Madam, Reporting under Regulation 30 & Regulation 55 of SEBI (LODR) Regulations Credit Rating & Press Release of Issuer Rating (Assigned) & Basel-III compliant Tier II Bonds — Reaffirmed by ICRA In terms of Regulation 30 read with point 3 of Para A of Part A of Schedule Ill and Regulation 55 of SEBI (LODR) Regulations, 2015. We wish to inform that the rating agency, ICRA has assigned Issuer Rating and reaffirmed rating our Bank's Basel-Ill compliant Tier II Bonds rating as per details given below: Sr I(cid:9) ISIN Name of Credit Outlook(cid:9) Rating(cid:9) —}(cid:9) Date of Verificatri(cid:9) Date of the Credit Ratin (Stable/(cid:9) Action (New/ (cid:9) Credit Rating on Status(cid:9) verification N Rating g Positive/ (cid:9) Upgrade/ of Credit 0. Agency Assig Negative/ Downgrade/ Rating ned No Reaffirm/ Agencies Outlook) Other) 1. 2. 3. 4. 5. 6. 7. 8. 9. 1. INE084A08227 AA+ Stable Reaffirmed 17-07-2026 Verified 17-07-2026 (Tier-II Bonds) ICRA 2. INE084A01 016 AM- Stable Assigned 17-07-2026 Verified 17-07-2026 (Issuer Rating) 2. Press Release issued by ICRA dated 17.07.2026 is also attached. 3. This is for your information and appropriate dissemination. 1-1—dtti Yours faithfully, (Usha Ramsinghani) $(cid:9) 7d Company Secretary 1;11.17 miwiciq fad=um #411 MAL RIZ WM:1-i, MB*ed(cid:9) i, 711-5, 41-zflfq, litAT ye tis,o, tgitg, 441 _ 400 051 Head Office: Investor Relations Cell, Star House-I, 8th Floor, C-5, G-Block, Bandra Kuria Complex, Bandra (East), Mumbai - 400 051 Ph.: (022) 6668 4490 / 4491 Email: headoffice.share@banIcofindia.banIcin ICRA July 17, 2026 Bank of India: [ICRA]AA+ (Stable) Issuer Rating assigned; rating for Basel III Tier II bonds programme reaffirmed Summary of rating action Current rated Previous rated amount Financial sector Instrument* amount Rating action (Rs. crore) regulators (Rs. crore) (cid:9) Issuer Rating [ICRA] AA+ (Stable); assigned (cid:9) (cid:9) (cid:9) Basel III Tier II bonds 2,500.00 2,500.00 [ICRA] AA+ (Stable); reaffirmed(cid:9) SEBI (cid:9) (cid:9) Total 2,500.00 2,500.00 *Instrument details ore provided in Annexure I # SEBI's grievance redressal/dispute resolution and SERI investor protection mechanisms such as SCORES and ODR shall not be available for activities and instruments which fall under the regulatory purview of Financial Sector Regulators other than SEBI $ Since no instrument is being rated, FSR is not applicable. The rating scale and definitions stipulated in RBI Master Circular for CRAB are being followed. Rationale The rating continues to factor in the sovereign ownership of Bank of India (Bol) and the demonstrated track record of capital support from the Government of India (Gol), which is expected to be forthcoming if required. The rating also factors in Bol's strong capital position as well as the sustained improvement in its solvency' level on the back of the declining net stressed assets level. The impact of the proposed transitioning to loan loss provisioning, based on the expected credit loss (ECL) framework, on its capital and profitability levels is also likely to be manageable due to the enhanced capital buffers. Moreover, the rating takes into account the bank's strong resource profile, given its well-developed retail franchise, which translates into a granular deposit base and a competitive cost of funds. The bank's overall potential stress book, comprising the overdue and restructured book, has declined gradually from the higher level during the Covid-19 pandemic. Additionally, the increased operating profitability provides cushion to the capital against unforeseen asset quality shocks. While profitability has improved materially over the last few years, the bank's return on assets (RoA) remained below 1%, rising only marginally to 0.96%2 in FY2026 from 0.95% in FY2025 (0.74% in FY2024). Consequently, profitability continues to trail the Public Sector Bank (PSB) average RoA of 1.12% in FY2026. The relatively low profitability vis- a-vis peers is attributable to lower yields on advances and relatively higher cost-to-income ratios. Bol's ability to enhance its yields and reduce its cost-to-income ratio will be important to improve its operating profitability in a sustainable manner. Moreover, its ability to keep its slippages, and consequently credit costs, under control in the backdrop of the weakening macroeconomic environment, spillovers from geopolitical conflicts and supply chain constraints will remain a key monitorable. Key rating drivers and their description Credit strengths Sovereign ownership with demonstrated capital support from Gol — The rating continues to factor in the bank's majority sovereign ownership (73.38% as on March 31, 2026) and the demonstrated track record of capital infusions by the Gol of —Rs. 29,784 crore during FY2017-FY2021. This enhanced its ability to absorb the impact of writing off its non-performing advances (NPAs). This supported a meaningful reduction in the net NPAs (NNPAs) over the last few years as well as Bol's exit from the prompt corrective action (PCA) framework of the Reserve Bank of India (RBI) in FY2019. Given the steady improvement in 1 Solvency is defined as (NNPAs + Net security receipts + Net non-performing investments)/Core capital) 2 All the ratios are as per ICRA's calculation www.icra .in Sensitivity Label : Public ICRA internal capital generation and the equity raise in FY2022 and FY2024, the bank is not expected to require further capital in the near term, though ICRA expects the same to be forthcoming if required. Moreover, the rating will be reassessed in case of a change in the sovereign ownership. Strong capitalisation levels — The bank's core equity capital (CET I) and Tier I capital ratios stood at 15.05% and 15.36%, respectively, as on March 31, 2026 (14.84% and 15.47%, respectively, as on March 31, 2025). While the capitalisation profile was backed by infusions in the past, Bol has remained profitable since FY2021, supporting its capital ratios despite the growth in assets. The capital position was also aided by the equity raise of Rs. 2,550 crore and Rs. 4,500 crore via qualified institutional placements (QIPs) in FY2022 and FY2024, respectively. Better capitalisation levels, along with the decline in the net stressed assets level, supported the gradual improvement in the solvency level to 5.68% as on March 31, 2026 (8.10% as on March 31, 2025 and 11.67% as on March 31, 2024). The bank has indicated a manageable impact of -2.5% of its net worth upon transition to the ECL framework from April 1, 2027, which it may spread over the transition period till March 31, 2031. ICRA notes that the bank may be required to support its subsidiaries and/or regional rural bank via capital infusions. Nevertheless, this is anticipated to stay at a manageable level. ICRA expects Bol to remain sufficiently capitalised as its internal capital generation is likely to provide the requisite growth capital. Well-developed deposit franchise, leading to competitive cost of funds — Bol continues to derive strength from its granular deposit base, which is supported by its network of 5,511 branches as on March 31, 2026 (5,304 as on March 31, 2025), with a deep presence in rural and semi-urban areas (65% of total branches). Its liability profile has traditionally been dominated by deposits, driven by the low-cost domestic current account savings account (CASA) deposits, which stood at 37.64% of total domestic deposits (above the PSB average of 36.27%) as on March 31, 206. The cost of funds of 5.02% in FY202 [Showing first 8,000 characters — download PDF for full document]