Shares of Bank of India declined over 2% after announcing a board meeting to consider a $1 billion overseas fundraise, highlighting banks’ intensified efforts to tap foreign markets amid a favourable macroeconomic backdrop.
Bank of India’s shares fell more than 2% on Monday after the state-owned lender said its board will meet later this week to consider a foreign-currency fundraising plan, a move that investors appeared to treat cautiously. The stock opened at ₹145 and slipped to an intraday low of ₹141.50 on the National Stock Exchange before last trading 2.49% lower at ₹141.39, while the Nifty 50 was little changed.
According to the bank’s regulatory filing, directors are scheduled to meet on August 14 to review a proposal to raise overseas funds through a medium-term note programme. The plan envisages raising up to $1 billion in several tranches through December 31, 2026, with the bonds expected to be issued in 3-year and 5-year dollar tenors from the lender’s GIFT City branch.
The move comes as Indian lenders step up efforts to tap foreign currency markets and NRI deposits to secure cheaper funding. The Economic Times reported that Bank of India is separately aiming to raise $1.2 billion through FCNR-B deposits and another $2 billion through overseas borrowings, having already secured $200 million via the deposit route. The paper said the strategy is intended to reduce reliance on costly bulk deposits. It also noted that first-quarter net profit rose 36% to ₹3,068 crore, with advances up 18.6% and deposits up 14.9%.
The broader push fits with a Reserve Bank of India-backed scheme encouraging foreign currency mobilisation, under which banks can raise overseas funds while the central bank absorbs the forex risk through dollar swaps, as the Times of India reported. State Bank of India has already mobilised about $1.9 billion under that framework, while Bank of India had earlier approved a ₹7,500 crore capital-raising plan through Basel III-compliant bonds for 2026-27, according to PSU Connect. Bank of India’s shares remain about 4% lower this year, although they are still up nearly 28% over the past 12 months.
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