Bank of India

The stable outlook on BOI reflects our expectation that the likelihood of government support for the bank will remain very high over the next 12-18 months. The ratings and outlook on BOI's subsidiary Bank of India (New Zealand) Ltd. will move in tandem with those on BOI. We may lower the ratings on BOI if our assessment of the bank's stand-alone credit profile (SACP) weakens by two notches to 'b+'. We could lower the SACP if the bank's capitalization weakens such that the risk-adjusted capital (RAC) ratio falls below 5% on a sustainable basis, possibly due to continually weak internal capital generation. We could also revise downward our assessment of BOI's SACP due to delays in resolution of the bank's

...Bank of India (BOI) should maintain its capitalization, while recurring COVID-19 spikes remain the risk. In our view, BOI will maintain its capital buffers over the next 12-18 months, thanks to moderate credit growth, capital increase through government infusion and qualified institutional placement earlier this year, and adequate profit retention over the period. A strong deposit franchise should continue to support the bank's credit profile. BOI's funding and liquidity metrics are strong and high customer confidence will underpin its solid retail deposit base....

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