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Bank of India (BOI) said on Saturday that it had successfully raised Rs 2,690 crore through a 10 -year infrastructure bond at an interest rate of 7.50 percent. These funds are collected through NSE Electronic Bidding Platforms – this is a case of issuing the bank's third infrastructure bonds in the current financial year.

The public sector lender had initially fixed a base issue size of Rs 1,500 crore, with an option to raise up to Rs 3,500 crore. However, the offer received a tremendous response and received a total of 94 dialects of Rs 8,845 crore, which was about six times more than the base issue size.

After reviewing the dialects, the bank accepted 26 dialects and finalized the issue at Rs 2,690 crore. According to the bank, the funds raised from these long-term bonds will be used for infrastructure projects and economical housing funding as per the guidelines of the Reserve Bank of India (RBI).

This amount will not be allocated for a specific project, rather it will contribute to the overall financing of major areas. In the last nine months, the bank has raised Rs 12,500 crore through several bonds offers.

This includes the basal III Tier-II bond released at an interest rate of 7.49 percent in September, Rs 2,500 crore, as well as 7.54 percent in July and November and Rs 5,000 crore issued at 7.41 percent respectively.

Meanwhile, the apex bank announced last month that it would pour an additional liquidity of Rs 110,000 crore in the banking system through open market purchase and convertible rate repo auction of government securities. The RBI said that these steps are being taken after reviewing existing liquidity and financial conditions.