Bank of India can raise Rs 7k cr from bonds

Bank of India can raise up to Rs 7,000 crore from bonds under tier II bonds to fund business growth. The bank recently raised Rs 320 crore from tier I bonds. The bank expects a credit growth of 22 per cent and deposit growth of 20-21 per cent in the current fiscal. 

The state-owned lender had reported a net profit of Rs 584 crore in the same period a year ago. The bank's Net Interest Income improved by 34 per cent during the quarter to Rs 1,740 crore from Rs 1,301 crore in the year-ago period. It witnessed a sharp rise in loan defaults in the June quarter, with net non-performing assets (NPAs) escalating to 1.18 per cent from 0.84 per cent during the same period last year.