S&P Global Ratings on Tuesday assigned 'BBB' long-term rating to Bank of India (BoI) on sufficient capitalisation, solid funding, and healthy liquidity.
The US-based agency said the ratings reflect the likelihood of extraordinary support for the state-run bank from the government, if needed.
The long-term rating on BoI is one notch above its assessment of the stand-alone credit profile (SACP) for the bank, S&P said while assigning its 'BBB' long-term and 'A-2' short-term issuer credit ratings to the bank.
1 September 2026
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'BBB' rating denotes adequate capacity of the institution to meet its financial commitments.
The stable outlook on long-term rating reflects our view that the bank will maintain its adequate capital position and solid funding and liquidity over the next two years.
"We base our view on BoI's very important role as a public sector bank in promoting financial inclusion through increased access to deposits and lending. The bank has very strong links with the government via the latter's majority ownership and control," S&P said in a statement.
It said solid deposits backed by high customer confidence due to government ownership, and its ample liquidity underpin the bank's creditworthiness.
However, profitability and asset quality lagging industry averages are tempering these strengths, S&P noted.
"We expect BoI to continue improving its risk management and asset quality over the next two years. The bank's capitalisation should also remain adequate and sufficient to support credit growth above the industry average,"
