India Ratings affirms Bank of Baroda at 'IND AAA'/Stable

India Ratings and Research (Ind-Ra) has affirmed Bank of Baroda's (BOB) long-term issuer rating at ‘IND AAA’/Stable, along with existing ratings on its debt instruments. The affirmation reflects BOB’s high systemic importance to the Government of India (GoI), which holds a 63.97% stake as of March 2025, its large pan-India and international presence, robust capitalisation, and superior liquidity. As of FYE25, BOB's deposit and net advances market share stood at approximately 6.6% and 6.7%, respectively. BOB's common equity tier-I (CET-I) ratio was 13.78% in FY25, and its total capital adequacy ratio was 17.19%. Ind-Ra also considered BOB’s subsidiaries in the analysis. However, the agency has noted a decline in BOB’s low-cost liability franchise and will be monitoring BOB’s profitability and provisioning requirements, particularly concerning its exposure to the NBFC sector.