Bank of Baroda credit ratings confirmed with stable outlook

Moody's Ratings has released an update confirming Bank of Baroda's (BOB) Baa3 long-term local and foreign-currency bank deposit ratings. The ratings are supported by India's robust economic environment and the bank's improved financial health, including a lower nonperforming loan (NPL) ratio and stronger capitalization. The outlook remains stable, reflecting confidence in BOB's solvency and liquidity. Moody's notes the Baa3 ratings are two notches above the bank's ba2 Baseline Credit Assessment, reflecting the expectation of government support if needed. While Moody's expects BOB's profitability to moderate slightly due to tightening margins, it anticipates a return on assets to remain above 1%. Total assets stood at INR18,541.9 billion as of March 31, 2025.