BoI's board meets Aug. 14 to approve the dollar bond plan. The lender has already pulled in $207M of NRI deposits through the RBI's swap window, but its $1B target leaves room for more.
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Bank of India is raising up to $1 billion through a Medium-Term Note programme, using the RBI's limited-period concessional swap window that has already brought $207.46 million of NRI deposits onto its books. The state-run lender issued a regulatory filing Tuesday outlining the plan, which its board will take up August 14.
The RBI opened its swap window in late May, letting banks lock in cheaper dollar-rupee hedging costs on fresh Foreign Currency Non-Resident Bank (FCNR-B) deposits. The facility closes at end-2026. Between June 5 and July 30, BoI mobilised $207.46 million of three- to five-year tenor FCNR-B deposits, according to finance ministry data tabled in the Lok Sabha.
On deposits below $100,000, the bank pays 6.00% to 6.25%. Above that threshold, the rate rises to 6.25% to 6.50%, depending on tenor. The spreads suggest other state-run banks are competing for the same NRI dollar pool.
The MTN will be issued in multiple tranches through BoI's GIFT City branch in Gujarat, using three- to five-year USD bonds. The GIFT City location lets the bank tap dollar funding without the usual onshore tax and regulatory drag, traders said.
BoI is not new to debt markets. In FY26 it raised ₹2,500 crore via Tier II bonds and ₹10,000 crore through 10-year infrastructure bonds. The MTN programme marks its first dollar-denominated fundraising of this scale.
SBI, Canara Bank and Punjab National Bank have all signalled they will use the RBI's swap window before it closes. BoI's disclosed $207 million haul through July is a fraction of its $1 billion target.
The August 14 board meeting will set the programme's size, pricing and timeline. Offering more competitive FCNR-B rates or pricing the MTN bonds below the earlier Tier II cost could determine how much of the $1 billion BoI actually draws down before year-end.
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