State-owned Bank of India (BoI) has raised Rs 2,500 crore from Tier I bonds to fund its business expansion plans.

Funds have been raised through Basel III compliant Tier-1 bonds by way of private placement of Rs 1,250 crore with a green shoe option of Rs 1,250 crore, BoI said in a statement on Monday.

These bonds will be listed on the wholesale debt market (WDM) segment of the NSE, it said.

BoI reported a 16.39 per cent drop in its net profit to Rs 806 crore in the June quarter.

The bank had posted a net profit of Rs 964.18 crore during the corresponding quarter in the previous fiscal.

Total income of the bank increased to Rs 11,328.73 crore for the quarter ended June 30, from Rs 9,722.01 crore in the year-ago period.

PTI