Bank of India Business Loan
On September 7, 1906, a group of businessmen from Mumbai established Bank of India. It was one of the first banks to be nationalised on July 19, 1969, along with 13 other private banks. Bank of India commenced its journey into the Indian banking system with one office, 50 employees, and a capital of 50 Lakhs. Today, Bank of India has grown to more than 5000 branches situated all over the country.
Bank of India has the distinction of establishing the first computerised branch and ATM facility among all nationalised banks. It has an excellent overseas presence with about 60 offices spread in more than 22 countries. It has a presence in many banking and financial centres such as Tokyo, Singapore, New York, London, and Paris.
Apart from offering a comprehensive range of deposit schemes, Bank of India offers various loans to its customers. Its Business Loan is among the popular loan products in the country.
Why Choose Bank of India Business Loan?
Bank of India caters to all business sectors, including manufacturing, services, trading, exports, and corporate entities. It offers an exhaustive range of Business Loan products in rural, semi-urban, urban, and metro areas. The best aspect of Bank of India Business Loans is that has products for every Indian citizen from the most impoverished family to the most affluent.
Bank of India is a leading financier to the MSME sector with an extensive range of specific tailor-made products to cater to every section of society. Bank of India has a tremendous reach, as it has a presence in every state and district in the country. As a leading nationalised bank, Bank of India is an active member lending institution recognised by CGTMSE. Hence, it offers collateral-free loans to the MSE sector by enabling borrowers to take advantage of the CGTMSE guarantee cover.
Transparency in services and competitive rates of interest characterise Bank of India Business Loans.
Bank of India Business Loan - Features and Benefits
- Extensive range of Business Loan products
- Caters to every MSME business activity in the manufacturing, services, and trading sector
- Collateral-free loans available under CGTMSE guarantee cover
- Need-based finance available for meeting working capital requirements
- Loans available for procuring fixed assets and expansion of business
- Exclusive products to cater to specific business activity
- A host of Government sponsored schemes available where eligible beneficiaries get the advantage of subsidy in the form of margin money, interest subventions, and direct credit into the account.
- Reasonable rates of interest and processing charges
- Concessions available in Rates of Interest on various MSME loan schemes
Bank of India Business Loan - Interest Rates
The one-year MCLR of Bank of India with effect from 10.07.2019 is 8.60%. The interest rates of all loans are linked to the one-year MCLR.
The rates of interest charged by the Bank of India depend on various factors like the loan amount, tenure, credit rating (internal) of the borrowing unit. The applicable rate of interest is a combination of the one-year MCLR, a common Business Strategy Spread (BSS) factor of 0.30% and Credit Risk Premium (CRP). This CRP depends on the loan amount, loan tenure, and the credit risk rating of the borrower.
Types of Bank of India Business Loans and Their Eligibility Norms
1.Star MSME E-Rickshaw Finance | |
Objective |
Provide finance to transport operators in the micro category to generate employment opportunities. |
Eligibility |
Individuals, transport operators, proprietorship concerns, partnership firms, and associations. |
Purpose |
Purchase of new E-rickshaws and funding the cost of one-time battery replacement. |
Facility |
Term Loan |
Quantum |
|
Margin |
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Repayment |
|
Security |
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Rate of interest |
|
Service charges |
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Insurance |
Compulsory |
Other compliances |
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2. Star MSME GST Plus | |
Purpose |
Meet working capital requirements of trading and manufacturing MSME units |
Facility |
Working Capital limit (FB and NFB) |
Eligibility |
Registered MSME units having valid GSTIN and complying with entry-level norms |
Quantum |
|
Margin |
|
ROI concession |
0.50% in applicable ROI |
Assessment |
Based on turnover specified in GSTR 1 or GSTR 4 returns |
Security |
Hypothecation of stocks/book debts |
Collateral |
|
3. Star Weaver Mudra Scheme | |
Purpose |
Meet working capital (WC) and term loan (TL) requirements of weavers |
Eligibility |
Existing and new weavers engaged in weaving activities in rural and urban areas |
Facility |
Cash Credit and Term Loan |
Quantum |
|
Margin |
|
Repayment terms |
Term loan repayment tenure between three and five years |
Subsidy |
|
Issue of Mudra Card |
|
Validity |
Three years |
Security |
Hypothecation of assets and CGTMSE guarantee cover |
Rate of interest |
|
4. Star SME Education Plus | |
Target |
Educational institutions |
Eligibility |
|
Purpose |
|
Facility |
Term Loan |
Quantum |
|
Repayment tenure |
Maximum of 8 years including moratorium of 12 to 18 months |
Margin |
20% |
5. Star Start-Up Scheme | |
Objective |
Funding eligible start-ups as per Government policy |
Eligibility |
All likely Startup enterprises |
Purpose |
Meet all financial requirements of start-up enterprises |
Facility |
Term Loan, Working Capital, and Non-fund based facility |
Quantum |
Minimum of 10 lakhs and maximum of 5 Crores |
Margin |
|
ROI concession |
1% concession |
Processing charges |
Waived |
Security |
|
Validity |
Five years or turnover achieving 25 Crores whichever is earlier |
6. BOI Star Doctor Plus | |
Objective |
|
Eligibility |
|
Purpose |
|
Facility |
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Repayment |
|
Quantum |
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Margin |
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Security |
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Collateral |
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Rate of interest |
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Processing charges |
50% concession |
Other benefits |
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7. Trade Receivable Discounting Scheme | |
Objective |
Addressing critical needs of MSMEs of en-cashing receivables and eliminating credit risk. |
Eligibility |
MSME units supplying goods and services to Corporate entities, Government departments, and PSUs. |
Facility |
Bills Discounting, Invoice factoring |
Quantum |
Need-based |
Rate of interest |
As applicable to MSMEs |
Benefits to sellers |
|
Benefits to buyers |
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8. Star SME Contractor Credit Line | |
Target |
All types of contractors including civil, transport, engineering, and mining |
Eligibility |
Sole proprietorship, partnership firms, and Pvt Ltd Companies engaged in the business for the last three years, having audited financials, and entry-level credit rating of SBS 5. |
Purpose |
Meeting WC needs |
Facility |
WC Limit including NFB facility |
Quantum |
|
Appraisal |
|
Margin |
20% for WC limit and 15% cash margin for NFB limits |
Security |
|
9. Star SME Auto Express | |
Target |
All existing SME units |
Eligibility |
|
Purpose |
|
Facility |
Term Loan |
Repayment |
Maximum of 84 months including three months moratorium |
Margin |
20% of the on-road price of the vehicle |
Security |
|
10. Star SME Liquid Plus | |
Target |
All eligible SME units with a minimum existence of three years with audited financial statements. |
Eligibility |
Profit-making SMEs for the last two years with a minimum credit rating of SBS 5 |
Purpose |
General purposes for SMEs, purchase of machinery, preliminary expenses |
Facility |
Term Loan |
Quantum |
Minimum 10 Lakhs and maximum of 5 Crores |
Repayment |
84 months including moratorium of 12 months |
Margin |
25% of project cost or 50% of the unencumbered value of property |
11. SRTO Scheme | |
Eligibility |
Individuals, proprietorship, partnership firms, Limited company, societies, and trusts |
Purpose |
Purchase of commercial vehicles, earthmoving equipment, excavators |
Facility |
Term Loan |
Margin |
15% of Project Cost |
Repayment |
Five to seven years with a holiday period of three years |
Star Laghu Udhyami Samekit Loan | ||||
Target |
MSE units all over India |
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Facility |
Composite Loan |
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Purpose |
Meet working capital requirements and other business requirements like investing in fixed assets. |
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Maximum quantum
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Rural areas |
Semi-Urban |
Urban |
Metro areas |
5 Lakhs |
10 Lakhs |
50 Lakhs |
1 Crore |
|
Margin |
15% |
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Repayment |
Maximum of five years with a holiday period of three to six months |
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ROI concession |
No term premium |
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Security |
|
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Processing charges |
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13. Technology Upgradation Fund Scheme | |
Objective |
Promote ease of doing business and help the Government achieve its vision of generating employment. |
Purpose |
Enable textile and jute industries to upgrade their technology and promote exports |
Subsidy |
One-time Capital Subsidy for investment in employment and technology-intensive segments of the textile industry. |
Eligibility |
All MSME units engaged in the textile industry such as weaving, knitting, processing of yarns and fibres, garment making, handloom, silk, and jute industry. |
14. Pradhan Mantri Credit Scheme | |
Objective |
Provide financial assistance to decentralized power loom units and weavers |
Purpose |
Meet WC requirements and capital investment needs |
Components |
|
Categories |
|
Subsidy |
Available in the form of Margin Money and Interest Reimbursement |
Government Sponsored Schemes
1. Pradhan Mantri Mudra Yojana | |
Objective |
To bring as many un-regulated microenterprise units under the banking umbrella |
Eligibility |
Any individual, woman, proprietorship concern, partnership firm, Pvt Ltd Companies, and other entities. |
Purpose |
Set up existing microenterprise business |
Facility |
DL, TL or WC facility |
Quantum |
|
Repayment |
|
Margin |
|
Security |
|
2. Stand Up India Scheme | |
Purpose |
Financing SC/ST and women entrepreneurs |
Objective |
Finance bank loans between 10 Lakhs and 1 Crore to SC/ST and women entrepreneur to set up a Greenfield enterprise. |
Eligibility |
|
Facility |
Composite Loan |
Quantum |
Minimum 10 Lakhs and maximum of 1 Crore |
Repayment |
Maximum 84 months with a maximum moratorium of 18 months |
Security |
|
Disbursement |
|
Margin money |
25% in convergence with eligible Central/State scheme |
3. Prime Minister Employment Generation Programme | |
Objective |
Generate job opportunities in rural and urban areas by setting up self-employment ventures/projects. |
Eligibility |
|
Margin |
5% to 10% of the project cost |
Margin Money Subsidy |
15% in urban areas and 25% in rural areas |
4. Deendayal Antyodaya National Urban Livelihoods Mission - DAY-NULM | |
Categories |
|
Eligibility |
|
Quantum |
Maximum Loan 2 lakhs per individual with a maximum exposure of 10 lakhs per group. |
Margin |
|
Repayment |
Seven years |
Guarantee cover |
Available |
Subsidy |
Interest subsidy |
5. Star Weaver Mudra Scheme | |
Objective |
Timely financial assistance to weavers |
Purpose |
Meet working capital and term loan requirement of weavers |
Eligibility |
New and existing handloom weavers involved in weaving activity |
Facility |
WC and TL |
Quantum |
|
Subsidy |
|
Mudra Card |
|
Validity |
Three years |
Security |
|
Rate of interest |
|
6. Cluster Financing | |
Objective |
Cluster-based scheme to provide financial assistance to a pool of borrowers engaged in a common activity in a specific geographical area. |
Identification |
Depends on the potential available Minimum 30 units to be active within the cluster Cluster identified by UNIDO, Ministry of MSME |
Purpose |
WC and TL requirements and NFB needs of units/borrowers in a particular group |
Facility |
Working Capital, Term Loan, and NFB limits |
Quantum |
Need-based |
Eligibility |
MSME units having valid GST registration |
Security |
All eligible accounts covered under CGTMSE guarantee |
7. Export Finance and Finance to Corporate sector | ||
Bullion Banking |
Export Finance |
Channel Credit |
Discount Future Cash Flows |
Foreign Currency Swing Limit |
Exporters Gold Card |
Dual Currency Swing Limit |
Bill Finance |
Bank Guarantee |
Documents Required Bank of India Business Loan
The general documents necessary for Bank of India Business Loan are as follows:
- Identity Proof (any one of): Self-certified voter ID card, driving licence, PAN Card, Aadhaar Card, Passport, or photo ID issued by any Government authority.
- Address Proof (any one of): Recent telephone bill, property tax receipt, electricity bill, voter ID card, the passport of proprietor/partners/directors, Aadhaar card, or certificate issued by Government authority.
- Proof of SAC/ST/Minority
- Business Proof: Copies of licenses, GST registration, rent agreement, or other documents that indicate business ownership.
- Statement of account for the last six months from the previous banker, if any
- Financial statements, ITR for the last two years
- Projected financials for the next year in case of working capital limits and the entire period of the loan for a term loan.
- Sales performance during the current financial year
- Proforma invoices of machinery, vehicles, or any other equipment
- Assets and Liabilities statement of all borrowers
- MOA and AOA of companies
- Partnership deed of partnership firms
- Property documents in case of collateral being offered
Why Apply for Bank of India Business Loan on MyMoneyMantra?
MyMoneyMantra makes it easy for customers to apply for Bank of India Business Loan. Our site provides additional facilities like online equated monthly instalment or EMI Calculator, comparing other Business Loan products and many more. Our relationship managers are available to assist customers with the compilation of documents and submitting them to the bank. We provide these services free of cost to all customers.
How to Apply for Bank of India Business Loan on MyMoneyMantra?
Follow the steps mentioned below to apply for Bank of India Business Loan:
- Go to our website and choose the Business Loan option
- The system will seek details from you regarding your name, age, the amount of loan you are looking for. It will also inquire about the purpose of the loan, your location, and the place where you would like to set up your business.
- Please share your mobile number and email details with us
- We will send an OTP that you have to enter at the appropriate location to access the loan products page.
- This page enables you to compare the various Business Loans of Bank of India as well as other banks.
- Our relationship managers will assist you to select the ideal option to suit your preferences
- They also help you with the compilation of the documents and submitting them to the bank. It makes the loan processing easy.
Other ways to apply for Bank of India Business Loan
- You can visit the local branch of Bank of India and submit the documents along with the completed loan application form. Bank of India has offices in almost every town in India. Applicants can also download the application form from the official website of Bank of India.
- It is also possible to apply for Business Loans online. Bank of India is an active participant in the Psbloansin59minutes.com initiative.
Other Products by Bank of India
Apart from Business Loans to the MSME sector and corporate entities, Bank of Baroda offers a bouquet of different loan products, such as:
BOI Super Saving Plus |
Demat Account |
Diamond Savings Bank Account |
BOI Star Yuva Account |
SB Account For Pensioners |
BOI Star Mahila SB Account |
BOI Star Senior Citizen SB Account |
Star Suraksha SB Plus Account
|
BOI Savings Plus Scheme
|
Savings Bank Ordinary Account |
BOI Salary Plus Account Scheme |
BOI Saral Salary Account Scheme |
BOI Star Gurukul SB Account |
Jai Jawan Salary Plus Account |
Silver Current Account |
Normal Current Account |
Gold Current Account |
Diamond Current Account |
Gold Plus Current Account
|
Diamond Plus Current Account |
Star Benefit CD Plus Current Account |
Platinum Current Account |
Platinum Plus Current Account |
BOI Super Current Plus Account |
Current Deposit Plus Account |
Double Benefit Term Deposit |
Star Flexi-Recurring Deposit |
Monthly Deposit |
Quarterly Deposit |
Recurring Deposit |
Short Deposit
|
Fixed Deposit |
Star Sunidhi Tax-Saving Deposit Scheme |
Capital Gain Tax Saving Scheme |
Motor Accident Claims Annuity (Term) Deposit Account (MACAD) |
SB Insurance |
CASA Term Insurance |
MIC of SB Accounts |
Kisan Credit Card |
Star Bhumiheen Kisan Card |
BOI Kisan Shatabdi Krishi Vikas Card |
Kisan Samadhan Card
|
Rural Services |
NRI Banking |
NRI Loans |
Export Credit |
LC/BG |
Remittances |
Credit Cards |
Debit Cards |
Prepaid Cards |
Business Card |
Merchant Services |
Cash Management Systems |
Tax Payment |
Online IT Return Filing |
Insurance |
PPF |
Online Bill Payments |
MSME Banking |
BOI Star Home Loan |
BOI Star Smart Home Loan |
Star Pravasi Home Loan |
BOI Star Diamond Home Loan |
Pradhan Mantri Awaas Yojana |
BOI Star Loan against property |
BOI Star Education Loan |
BOI Star Vidya Loan |
Padho Pradesh |
BOI Star Top Up Loan |
BOI Star Vehicle Loan |
BOI Star Personal Loan |
BOI Star Mitra Personal Loan |
BOI Star Pension Loan |
Star Holiday Loan |
BOI Star Doctor Plus |
BOI Star IPO |
Pradhan Mantri Kaushal Rin Yojana |
How to Calculate Bank of India Business Loan EMI?
MyMoneyMantra offers Business Loan EMI Calculator. Access website, go to Financial Tools and select the EMI Calculator option. Enter details such as your loan amount, tenure, and rate of interest to get your Business Loan EMI. This calculator provides additional information such as bifurcation of interest and principal repayment.
You can also use the Bank of India Business Loan EMI Calculator available online on their website to determine your loan EMI. It is easy to use this calculator. Customers have to enter the loan amount, interest rate, and loan tenure to get their EMI within no time.
Bank of India Business Loan - Processing Fee and Other Charges
Processing Charges | |||
Limit Range |
Rural and Semi-urban Branches |
Other branches |
|
Up to 1 Lakh |
Nil |
Nil |
|
Over 1 Lakh |
250 per lakh with a maximum of 10 Lakhs |
300 per lakh with a maximum of 15 Lakhs |
|
Term Loan Review |
|||
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75 per lakh with a maximum of 2 Lakhs |
90 per lakh with a maximum of 3 Lakhs |
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Limit Range |
Documentation Charges |
Inspection Charges |
|
|
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Rural/Semi-Urban branches |
Metro and Urban branches |
Up to 1 Lakh |
Nil |
Nil |
Nil |
> 1 Lakh to 5 Lakhs |
1,000 |
200 |
300 |
> 5 Lakhs to 10 Lakhs |
2,000 |
500 |
750 |
> 10 Lakhs to 25 Lakhs |
3,000 |
1,000 |
1,500 |
> 25 Lakhs to 1 Crore |
5,000 |
1,500 |
2,000 |
> 1 Crore to 5 Crores |
10,000 |
2,000 |
3,000 |
> 5 Crores |
20,000 |
2,500 |
3,500 |
Equitable Mortgage Charges |
Limit Range |
All branches |
|
Up to 10 Lakhs |
Nil |
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> 5 Lakhs to < 50 Lakhs |
5,000 |
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50 Lakhs to |
10,000 |
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5 Crores and above |
50,000 |
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Amendment or Modification of Sanction terms |
Limit Range |
Amount per instance |
|
Up to 1 Crore |
Nil |
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> 1 Crore to 5 Crores |
7,500 |
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> 5 Crores to 50 Crores |
30,000 |
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Above 50 Crores |
50,000 |
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Prepayment Charges |
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Bank of India Business Loan - Customer Care
Customers can make general enquiries at the following toll-free numbers:
- 1800-220-229
- 1800-103-1906
Bank of India Business Loan - FAQs
Is it necessary to have an account in Bank of India to avail Business Loans?
No, it is not compulsory to maintain accounts in Bank of India if you wish to avail loans from the bank. However, it becomes easy for the bank to process your loans and ensure prompt repayment if you maintain your business account the bank. The bank finds it easy to monitor your account, whereby it becomes convenient at the time of the annual review.
How do you repay the Bank of India Business Loan EMI?
The most convenient way of repaying the Business Loan EMI is to maintain a standing instruction order with the bank. It ensures prompt repayment on the due date. Alternatively, you can deposit PDCs in advance or have ECS instructions set up to clear the instalment on the due date.
Can I foreclose the Bank of India Business Loan?
Yes, it is possible to foreclose the Bank of India Business Loan. Individual borrowers do not incur any penalty for foreclosing the loan.
What types of non-fund based facilities are available with Bank of India?
Bank of India has many Business Loan products that enable the borrowers to avail non-fund based facilities. The bank opens Letters of Credit, both inland and foreign. At the same time, the bank also issues bank guarantees on behalf of its customers.
Can I repay my Bank of India Business Loan through mobile banking?
Yes, it is now possible to transfer funds from one account to another using the mobile banking channel. Bank of India offers mobile banking application to enable you to transact online and repay your Business Loans as well.
What is the benefit of the CGTMSE guarantee?
The primary advantage of the CGTMSE guarantee is that you can avail collateral-free loans. You do not have to provide security in the form of mortgage of your property. This facility is advantageous to MSE units that do not have facilities to offer collateral.
How does CGTMSE guarantee protect the banks?
CGTMSE guarantee cover protects the banks from the default of the customer. In case the account turns into NPA, the bank can invoke the guarantee cover and lodge the claim with the trust. It protects the bank to a large extent.
What are the prime requisites to avail CGTMSE guarantee cover?
CGTMSE guarantee is available to micro and small enterprises alone. Credit limits up to 2 Crores are eligible for the guarantee cover. The rules stipulate that the banks should not ask for any other collateral or third-party guarantee if they propose to extend CGTMSE protection to the borrower. The borrower has to pay the guarantee fee and annual service charges to keep the guarantee in force.
Can a borrower avail CGTMSE guarantee for part of the loan while providing collateral for the balance amount?
o, this facility is not available. Borrowers can provide collateral for the entire amount and not avail the guarantee cover at all. They can avail the cover for one loan and offer collateral for another one if they have two separate loan accounts.
Can I avail CGTMSE cover for a Business Loan sanctioned for constructing factory building?
Yes, MSE units can avail CGTMSE cover for such loans provided they are otherwise eligible. However, the borrower should mortgage the land and building with the bank, as the mortgage forms part of prime security.
Latest News and Snippets - Bank of India
Bank of India posts a net profit of 252 Crores for the March quarter.
A reduction in the bad moans or NPA portfolio enables Bank of India to post a profit of 252 Crores for the last quarter of the year 2018-19. However, the bank has posted an overall loss of 5,546.90 Crores for the financial year 2018-19. This profit in the last quarter of the year suggests that the bank has turned the corner after coming out of the PCA (Prompt Corrective Action) regulatory framework.
Bank of India to disinvest 25.05% of its share in JV Star Union Dai-ichi
Bank of India has announced a depletion in its stake in JV Star Union Dai-ichi Life Insurance Co by selling 25.05% of its shares for 1,106 Crores. The sale is a part of the bank's plan to offload its non-core assets and raise funds.
Bank of India could receive a fresh infusion of capital from the Government this fiscal.
The Government of India made a substantial capital infusion of 1,06,000 Crores in the financial year 2018-19. As a result of this capital infusion, five banks, including Bank of India, came out of the PCA framework. The bank expects the second round of capital infusion this fiscal, as the Finance Minister has announced a rehabilitation package for the public sector banks this fiscal.