Bank of India

. Ref. No.:HO:IRC:SVM:2026-27: 183

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BOI

Bank of India

fa Date: 08.09.2026

Re: Bank of India Credit Ratin 一

In terms of Regulation 30 read with point 3 of Para A of Part A of Schedule IIl and Regulation 55 of SEBI (LODR) Regulations, 2015 and SEBI Master Circular No. SEBI/HO/DDHS-POD2/P/CIR/2025/101 dated July 11, 2025, we wish to inform that the r at , . - s s n ds orr ter s rt g r ti rss ble.

2. Press Release issued by S&P Global Ratings dated 07.09.2026 is also attached.

3. This is for your information and appropriate dissemination.

A rating downgrade of BOI could occur if the sovereign ratings on India are lowered or if the assessment of the bank's stand-alone credit profile (SACP) is revised downward.

A second listed trigger is a significant deterioration in the bank's funding such that its low-cost CASA deposits or its loan-to-deposit ratio is no longer superior to those of peers.

Asset quality to come under pressure. BOl's improving risk management should limit any significant weakening in asset quality, although external headwinds remain a risk.

We anticipate new nonperforming loan formation will hover around 1.0% over the next two years, compared with a 0.94% annualized rate in the first quarter of fiscal 2027. This primarily reflects heightened risk across several key segments.

Agriculture comprises a somewhat larger share of BOl's RAM segment than of those of several other public sector peers we rate. We also see geographical concentration in this portfolio par n s e s ent pressure. BOl's agriculture-related nonperforming loans are also somewhat higher than the n ot n r uns!

The MSME book is predominantly secured, though sectors like gems and jewelry, textiles, and chemicals face potential pressure.

The credit quality of BOl's wholesale portfolio continues to benefit from ongoing, highly favorable domestic corporate credit conditions. However, the bank continues to have higher single name concentration than its peers, with the top 20 loans accounting for 15.76% of total loans as of the end of March 2026. This compares with about 4%-7% for peers. However, these exposures are ma s ss d tes

Bol has strong funding, backed by solid deposits. Government ownership enhances customer confidence, resulting in highly stable and sticky deposits. A diverse range of retail deposits dominate the bank's deposit base, alongside a meaningful share of relationship-based corporate and government deposits. Household deposits form about 58% of domestic deposits, similar to the industry.

Given government ownership, BOi will also benefit from flight to quality in a stress scenario, in our view. The bank's wide network of 5,510 branches as on March 31, 2026, supports its deposit base, alongside its deep presence in rural and semiurban areas.

BOl's current account-savings account (CASA) deposits ratio at 37.0% of total deposits as of June 2026, remains better than those of several domestic peers. The bank's deposit concentration is also low, with the top 20 depositors holding about 7.3% of total deposits. Moreover, many of its large depositors are government-related.

Despite BOl's large overseas presence, its reliance on wholesale funds remains limited. However, the so r s d o -c- sit growth. The ratio was at about 83% as of March 31, 2026, which is better than most private sector bank peers. Meanwhile, BOl's stable funding is also better than several private sector peers with the o o rs.

BANKINDIA: consolidated profit attributable to owners changed by 80.5% in the quarter ending 30 June 2026, compared with the quarter ending 2025-06-30.