Bank of Baroda Receives Initial RBI Approval to Transfer Primary Dealer License to Subsidiary

Bank of Baroda has received initial approval from the Reserve Bank of India (RBI) to transfer its Primary Dealer license to a fully owned subsidiary. This development represents a significant step in the public sector bank's strategic restructuring initiatives.

Regulatory Approval Status

The RBI's initial approval marks the first phase of the license transfer process. However, the bank has indicated that additional regulatory clearances are still pending before the transfer can be completed.

Parameter:	Details
Approval Status:	Initial approval received
Regulatory Authority:	Reserve Bank of India (RBI)
License Type:	Primary Dealer license
Transfer Destination:	Fully owned subsidiary
Additional Approvals:	Pending

Strategic Implications

The transfer of the Primary Dealer license to a subsidiary structure could enable Bank of Baroda to optimize its operations and enhance focus on core banking activities. Primary Dealers play a crucial role in government securities markets, acting as intermediaries between the RBI and other market participants.

Next Steps

While the initial RBI approval represents progress, the bank must secure additional regulatory clearances before the license transfer becomes effective. The completion timeline will depend on the processing of these pending approvals by relevant regulatory authorities.

This organizational restructuring initiative demonstrates Bank of Baroda's commitment to streamlining its operations and aligning its business structure with evolving market requirements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.37%	-0.03%	+5.42%	+25.40%	+29.06%	+358.66%

Bank of Baroda has secured a significant regulatory milestone with the Reserve Bank of India's in-principle approval for transferring its Primary Dealer authorization to a wholly owned subsidiary. The approval was disclosed by the bank on January 9, 2026, in compliance with SEBI regulations.

Regulatory Approval Details

The RBI's in-principle approval covers the transfer of the bank's existing Authorization as a Bank Primary Dealer to a proposed wholly owned subsidiary. This strategic move will enable the establishment of a standalone Primary Dealer business operation.

Parameter:	Details
Approval Type:	In-principle approval
Regulatory Authority:	Reserve Bank of India (RBI)
Authorization Transfer:	Bank Primary Dealer to subsidiary
Business Structure:	Standalone Primary Dealer Business
Subsidiary Ownership:	Wholly owned subsidiary

Implementation Requirements

The establishment of the standalone Primary Dealer business remains subject to obtaining other regulatory approvals beyond the RBI's in-principle consent. The bank has not specified the timeline for securing these additional approvals or the expected launch date for the subsidiary operations.

Compliance and Disclosure

Bank of Baroda made this disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The bank has committed to providing further disclosures as material developments occur in the matter, ensuring transparency for stakeholders and regulatory compliance.

The communication was signed by S Balakumar, Company Secretary, and formally submitted to both BSE Limited and National Stock Exchange of India Limited on January 9, 2026.