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. The bank's performance exceeded market expectations across key financial parameters.

Q3 Financial Performance Overview

The bank reported net profit of ₹5,050 crore for Q3, significantly outperforming analyst estimates of ₹4,694 crore and marking a growth from ₹4,837 crore in the previous year. Revenue for the quarter reached ₹31,750 crore, up from ₹31,280 crore year-on-year. For the nine-month period ending December 31, 2025, net profit reached ₹14,405 crore with operating profit at ₹23,190 crore.

Asset Quality Metrics Show Continued Improvement

Bank of Baroda maintained strong asset quality with the Gross NPA ratio improving to 2.04% from 2.16% on a quarter-on-quarter basis, while also showing year-on-year improvement from 2.43%. The Net NPA ratio remained stable at 0.57% quarter-on-quarter, representing a 2 basis points improvement year-on-year from 0.59%.

Business Growth and Operational Metrics

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

Capital Adequacy and Profitability

The bank maintained strong capital adequacy with CRAR at 15.29%, comprising Tier-I capital of 13.10% and Tier-II capital of 2.19%. Return on Assets remained consistently above 1% at 1.09% for the quarter, while Return on Equity stood at 15.59%. Global Net Interest Margin was 2.79% with domestic NIM at 2.93%, supported by a cost of deposits at 4.75%.