Bank of Baroda has received a comprehensive rating update from Fitch Ratings, with the international credit rating agency reaffirming the bank's existing ratings while upgrading a key metric that reflects the institution's standalone financial strength. The rating action was disclosed under Regulation 30 of SEBI (LODR) Regulations, 2015.

Rating Affirmation and Upgrade Details

Fitch Ratings has maintained its Long-Term Issuer Default Rating for both Bank of Baroda and its subsidiary Bank of Baroda New Zealand at 'BBB-' with a Stable Outlook. Simultaneously, the rating agency has upgraded the bank's Viability Rating to 'bb' from 'bb-', indicating an improvement in the bank's standalone credit profile.

Financial Performance Improvements

The viability rating upgrade is supported by significant improvements in the bank's financial profile. Asset quality has shown marked improvement with the impaired-loan ratio decreasing to 2.00% in 9MFY26 from 2.30% in FY25. Credit costs have eased substantially to 0.30% of loans in 9MFY26 from 0.50% in FY25, while loan loss cover remained steady at 72.00%.

Capital and Liquidity Position

Bank of Baroda's capital position has strengthened significantly with the Common Equity Tier 1 ratio rising to 13.60% in 9MFY26. The net impaired loans to CET1 ratio improved to 6.30% in 9MFY26 from 7.60% in FY24, indicating enhanced capital buffers. Fitch expects the CET1 ratio to settle above 13.00% through FY27.

The bank maintains strong funding and liquidity metrics with deposits constituting 92.30% of total non-equity funding and a liquidity coverage ratio of 116.00% at 9MFY26. The loan-to-deposit ratio of 86.90% represents the highest among Fitch-rated state banks.

Rating Rationale and Outlook

Fitch's rating action reflects the bank's position as India's second-largest state bank with 64.00% government ownership, supporting the high probability of extraordinary state support. The rating agency has revised its outlook on Indian banks' operating environment to positive, expecting reduced sector risks due to enhanced regulation and supervision by the Reserve Bank of India.

The stable outlook on the IDR mirrors that on India's sovereign rating, with Fitch forecasting GDP growth above 6.00% through FY27. The bank's enhanced risk profile, improved underwriting standards, and better loan diversification contribute to the positive assessment.

Bank of Baroda has formally notified stock exchanges about a potential strike by banking unions scheduled for February 12, 2026. The notification, issued on February 09, 2026, under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, alerts investors and stakeholders about possible disruptions to banking operations.

Strike Notice Details

Three major banking unions have served notice for the strike action:

The unions have called for the strike on Thursday, February 12, 2026, citing various issues and demands. The specific details of these demands were not disclosed in the regulatory filing.

Operational Impact Assessment

Bank of Baroda has acknowledged the potential impact on its operations. The bank stated that while it is taking all necessary steps to ensure smooth functioning of branches and offices during the strike day, operations may still be affected if the strike materializes.

The bank's proactive approach includes contingency planning to minimize disruption to customer services. However, customers may experience delays or limited services at branches and offices on the strike date.

Regulatory Compliance

The notification was sent to both major stock exchanges:

Company Secretary S Balakumar signed the regulatory filing, ensuring compliance with SEBI Regulation 30 requirements for material event disclosure. The exchanges have been requested to upload this information on their websites for public access.

Market Implications

This strike notice represents a potential operational challenge for one of India's leading public sector banks. While the bank has assured stakeholders of its preparedness, any disruption to banking services could temporarily impact customer transactions and business operations on the strike date.