Bank of Baroda has announced that the Central Government has extended the tenure of Executive Director Lal Singh until his superannuation on January 31, 2027. This extension supersedes his previously notified term which was scheduled to end on October 8, 2026.

The decision was taken in exercise of powers conferred by clause (a) of sub-section (3) of section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, read with paragraph 8(1) of the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970. The notification was issued on September 23, 2026.

Tenure details

The extension applies to Lal Singh, whose date of birth is recorded as January 11, 1967. The new term will continue until further orders or until the date of superannuation, whichever occurs earlier.

The company secretary, S Balakumar, confirmed the development and requested stock exchanges to take note of the information pursuant to Regulation 30 of SEBI (LODR) Regulations.

Bank of Baroda has incorporated a new subsidiary, BOB Pension Fund Management Company Limited, to enter the pension fund management business. The entity received its certificate of incorporation from the Registrar of Companies on September 21, 2026.

The bank disclosed the move under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The subsidiary is structured under Section 8 of the Companies Act 2013.

Subsidiary Details

The new entity aims to act as a Pension Fund Manager regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Its core business involves receiving contributions, accumulating and investing pension assets, and managing disbursements to subscribers or beneficiaries.

Investment Structure

Bank of Baroda plans to acquire an 80.10% stake in the subsidiary by subscribing to 8,00,99,950 equity shares. Each share has a face value of ₹10. The total proposed acquisition cost is ₹80,09,99,500, paid via cash consideration.

The bank intends to complete this acquisition by December 31, 2026.

Regulatory Approvals

The bank secured necessary regulatory clearances prior to incorporation:

• Letter of appointment as sponsor from PFRDA dated May 5, 2026.
• Approval from the Reserve Bank of India (RBI) dated July 10, 2026, for incorporating the new subsidiary with an 80.10% holding.

What the Numbers Show

The authorized share capital of ₹100 crore significantly exceeds the initial acquisition cost of approximately ₹80.10 crore for the 80.10% stake. This structure implies that other entities or promoters will subscribe to the remaining equity, aligning with the non-wholly owned nature of the investment despite the bank's controlling interest.