Bank of Baroda 's Board of Directors has approved a significant fund-raising initiative worth up to Rs 15,000 crores through long-term bonds. The approval was granted during a board meeting held on January 30, 2026, marking a strategic move to strengthen the bank's capital base for infrastructure and affordable housing financing.

Board Meeting Details

The board meeting was conducted on January 30, 2026, with proceedings spanning from 10:30 a.m. to 4:30 p.m. During this session, directors deliberated and approved the comprehensive bond issuance plan that will support the bank's lending operations in key sectors.

Fund Raising Structure

The approved bond issue demonstrates a well-structured approach to capital mobilization:

Bond Specifications and Timeline

The long-term bonds will specifically target financing for infrastructure projects and affordable housing initiatives. The issue includes provisions for Long Term Green Infrastructure Bonds, reflecting the bank's commitment to sustainable financing solutions.

Key features of the bond issue include:

• Execution Method: Single or multiple tranches based on market conditions
• Timeline: FY 2025-26 and beyond
• Feasibility: Subject to market conditions and regulatory approvals
• Regulatory Compliance: Issued under Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations 2015

Strategic Implications

This fund-raising initiative positions Bank of Baroda to expand its lending portfolio in critical sectors of the Indian economy. The focus on infrastructure and affordable housing aligns with national development priorities and provides the bank with opportunities to participate in long-term growth sectors.

The inclusion of green infrastructure bonds also demonstrates the bank's alignment with environmental, social, and governance (ESG) principles, potentially attracting ESG-focused institutional investors.

Regulatory Disclosure

The bank has fulfilled its disclosure obligations under SEBI regulations, with Company Secretary S Balakumar signing the official communication to stock exchanges. The disclosure references previous communications dated January 19, 2026, and January 23, 2026, indicating ongoing coordination with regulatory authorities regarding this fund-raising initiative.

Bank of Baroda announced its financial results for the quarter and nine months ended December 31, 2025, demonstrating consistent growth momentum supported by stable asset quality and strong profitability metrics.

Financial Performance Highlights

The bank reported net profit of ₹5,055 crore for Q3FY26, representing a 4.5% year-on-year increase. For the nine-month period ending December 31, 2025, net profit reached ₹14,405 crore. Operating profit for the quarter stood at ₹7,377 crore, while for the nine-month period it was ₹23,190 crore.

Asset Quality Improvement

Bank of Baroda continued to maintain strong asset quality with significant improvements across key parameters. The Gross NPA ratio improved to 2.04% in Q3FY26 from 2.43% in Q3FY25, marking a 39 basis points year-on-year reduction. The Net NPA ratio also improved, declining by 2 basis points year-on-year to 0.57%.

The bank's balance sheet remains robust with a healthy Provision Coverage Ratio of 92.73% with technical write-offs and 72.21% without technical write-offs. Credit cost remained below 0.75% at 0.17% for Q3FY26 and 0.34% for the nine-month period.

Business Growth and Margins

Global advances registered strong growth of 14.7% year-on-year, reaching ₹13,44,904 crore. Domestic advances grew by 13.6% year-on-year to ₹10,96,557 crore. The bank's organic retail advances portfolio demonstrated robust performance with 17.4% growth, driven by strong performance across segments including mortgage loans (21.0%), auto loans (17.4%), home loans (16.0%), education loans (12.8%), and personal loans (12.0%).

Capital Adequacy and Profitability Ratios

The bank maintained strong capital adequacy with CRAR standing at 15.29% in December 2025. Tier-I capital stood at 13.10% (CET-1 at 12.45%, AT1 at 0.65%) and Tier-II at 2.19%. Return on Assets remained consistently above 1% at 1.09% for Q3FY26, while Return on Equity stood at 15.59% for the quarter.

Global Net Interest Margin for Q3FY26 was 2.79%, while domestic NIM stood at 2.93% for the quarter. The cost of deposits for the quarter was 4.75%, representing a reduction of 33 basis points year-on-year and 1.6 basis points quarter-on-quarter.

Segment Performance

The share of Retail, Agriculture, and MSME loans (RAM) in advances improved by 190 basis points year-on-year to 61.8%. The RAM portfolio grew by 17.3% in Q3FY26. Agriculture loan portfolio grew by 19.0% year-on-year to ₹1,79,805 crore, while organic MSME portfolio grew by 16.4% year-on-year to ₹1,53,415 crore. Corporate advances registered growth of 8.1% year-on-year, standing at ₹4,18,963 crore.