Bank of Baroda has successfully completed the allotment of its Long Term Green Infrastructure Bonds worth Rs. 10,000 crores, marking a significant milestone in the bank's sustainable financing initiatives. The allotment was completed on March 5, 2026, following a single-day issue period on the National Stock Exchange Electronic Book Platform.

Bond Issue Details

The bond issue represents a comprehensive green financing instrument with specific characteristics designed for institutional investors. The bonds carry an attractive coupon rate of 7.10% and are structured as senior, rated, listed, unsecured, redeemable, long-term, fully paid-up, non-convertible bonds in the nature of debentures under Series I.

Issue Timeline and Response

The bond issue demonstrated efficient execution with a streamlined timeline. The issue opened and closed on March 4, 2026, exclusively on the NSE Electronic Book Platform, indicating strong investor interest and successful price discovery.

Regulatory Compliance

The bond allotment has been completed in full compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Bank of Baroda has formally notified both BSE Limited and National Stock Exchange of India Limited about the successful allotment, ensuring complete transparency and regulatory adherence.

The green infrastructure bonds are expected to support the bank's commitment to sustainable financing and contribute to India's green infrastructure development goals. The successful completion of this substantial bond issue reflects strong institutional confidence in Bank of Baroda's financial strength and green financing capabilities.

Bank of Baroda has received favorable credit rating action from India Ratings and Research (Ind-Ra), which assigned the bank's additional Certificate of Deposits an 'IND A1+' rating while affirming all existing ratings. The rating agency's comprehensive assessment reflects the bank's strong market position and robust financial metrics.

Rating Details and Actions

India Ratings has taken multiple rating actions for Bank of Baroda's various debt instruments:

The rating actions demonstrate continued confidence in the bank's creditworthiness across its various funding instruments.

Key Rating Strengths

Bank of Baroda's ratings are anchored by several fundamental strengths that position it favorably within the public sector banking landscape:

Market Leadership and Systemic Importance: The bank maintains its position as the third-largest public sector bank by deposits and second-largest by net advances, with market shares of 6.5% and 6.6% respectively as of 9MFYE26. Its extensive domestic network comprises 8,500 branches, 11,563 ATMs and cash recyclers, serving approximately 188 million customers.

Strong Capitalization: Bank of Baroda demonstrates robust capital adequacy with a CET-I ratio of 12.45% in 9MFY26, tier-1 ratio of 13.10%, and total capital adequacy ratio of 15.29%. These capital buffers provide adequate support for the bank's targeted credit growth rate of 11%-13% year-on-year.

Superior Asset Quality Metrics: The bank maintains a high provision coverage ratio of 72.2% in 9MFY26, positioning it at the higher end of the public sector bank peer group. Gross NPAs and net NPAs stood at 2.04% and 0.57% respectively, showing improvement from previous periods.

Financial Performance Indicators

The bank's operational metrics reflect stable performance across key parameters:

The bank's return on assets is expected to be maintained at around 1.15% in FY26, consistent with recent performance levels.

Areas of Focus

While the ratings reflect overall strength, India Ratings identified the decline in low-cost liability franchise as a key area requiring attention. The bank's global CASA deposit ratio declined to 36.57% in 9MFY26 from 37.82% in FY25. However, domestic current account balances increased 15.1% year-on-year in 9MFY26, with savings account balances growing 7.4%, leading to 11.1% growth in overall domestic deposits.

Liquidity Assessment

India Ratings assessed Bank of Baroda's liquidity as "Superior," with the bank maintaining an overall funding gap of 9.7% in the cumulative one-year bucket as a percentage of total assets at end-3QFY26. The bank holds 12.0% of its total assets in balances with the Reserve Bank of India and government securities, with a comfortable average consolidated liquidity coverage ratio of 116% in 3QFY26.