S&P Global Ratings has assigned Bank of India a BBB long-term rating, reflecting the lender’s capital adequacy, funding profile, and liquidity position.
The rating is supported by sufficient capitalisation, solid funding, and healthy liquidity, according to the agency.
The agency noted the likelihood of extraordinary government support if needed for the state-run bank.
Bank of India’s role in financial inclusion and its strong government links underpin its creditworthiness.
Profitability and asset quality lag behind industry averages, tempering these strengths, S&P stated.
Because Bank of India is a government-owned lender with a mandate for financial inclusion, the rating could have implications for funding conditions and perceived credit risk among investors and regulators, and is relevant for taxpayers monitoring public-sector banking performance.
