Bank of Baroda has received a credit rating reaffirmation from CRISIL Ratings, with all debt instrument ratings maintained at 'CRISIL AAA/CRISIL AA+/Stable' as of January 02, 2026. The rating action covers multiple bond categories totaling over ₹50,000 crores, reinforcing the bank's strong credit profile and market position.

Rating Action Overview

CRISIL has reaffirmed ratings across Bank of Baroda's comprehensive debt portfolio:

The rating agency also withdrew its rating on Tier I bonds worth ₹2,578 crores, confirming these instruments have been fully redeemed in line with CRISIL's rating withdrawal policy.

Key Rating Strengths

Government Support and Market Position

The ratings continue to factor in strong government support expectations, with the Government of India holding 63.97% shareholding as of September 30, 2025. Bank of Baroda maintains its position among India's top five banks by asset size, with total standalone assets of ₹18,26,400 crores and consolidated assets of ₹19,13,557 crores as of September 30, 2025.

Financial Performance Metrics

The bank's financial indicators demonstrate steady performance:

Asset Quality and Capitalisation

Bank of Baroda has demonstrated improving asset quality metrics, with Gross Non-Performing Assets declining to 2.20% as of September 30, 2025, from 2.30% in March 2025 and 2.90% in March 2024. The bank maintains adequate capitalisation with Tier I and overall Capital Adequacy Ratios at 14.15% and 16.54% respectively as of September 30, 2025.

The bank's advances portfolio grew 11.90% year-on-year to ₹12,78,847 crores as of September 30, 2025, with retail, agriculture, and MSME segments comprising 46% of overall advances, up from 43% in March 2024.

Business Diversification and International Presence

Bank of Baroda operates through a diversified network of over 8,400 domestic branches, with 60% located in rural and semi-urban areas. The bank maintains significant international presence across 82 overseas offices in 17 countries, contributing 17% to global business as of September 30, 2025.

The deposit base stood substantial at ₹15,00,012 crores as of September 30, 2025, with a CASA ratio of 38.42%. International operations provide geographical diversity, generating approximately 15.20% of total deposits from overseas markets.

Rating Outlook and Monitoring Factors

CRISIL maintains a stable outlook, expecting the bank to sustain its strong market position while continuing to benefit from government support. Key monitoring factors include asset quality improvements in MSME and agriculture segments, profitability enhancement, and maintenance of adequate capital levels above regulatory requirements.

Bank of Baroda has received $29.4 million from a liquidator, marking a significant recovery for the public sector banking institution.

Financial Recovery Details

The bank has successfully recovered $29.4 million through liquidation proceedings. This amount represents funds that were previously tied up in distressed assets or legal proceedings.

Impact on Bank Operations

This recovery demonstrates Bank of Baroda's ongoing efforts in asset resolution and debt recovery mechanisms. The receipt of these funds from the liquidator indicates successful completion of legal or restructuring processes.

Such recoveries are typically part of the bank's broader strategy to improve asset quality and strengthen its balance sheet position. The funds received can be utilized to enhance the bank's lending capacity or improve its provision coverage ratios.

Significance for Stakeholders

The $29.4 million recovery represents a positive development for Bank of Baroda's stakeholders, including shareholders and depositors. This type of asset recovery helps in:

• Improving overall asset quality
• Enhancing financial stability
• Strengthening recovery mechanisms
• Supporting future lending operations

The successful recovery through liquidation proceedings reflects the bank's effective approach to managing distressed assets and maximizing recoveries from challenging situations.