Moody's affirms Bank of Baroda's rating, upgrades BCA

Moody's Ratings announced on November 18, 2025, that it has affirmed Bank of Baroda's (BOB) Baa3 ratings. This affirmation is based on the expectation of a very high probability of support from the Government of India (Baa3 stable) when needed, leading to a one-notch uplift to its Baa3 ratings from its ba1 BCA.

The bank's Baseline Credit Assessments (BCAs) and adjusted BCAs have been upgraded by one notch to ba1. This upgrade is attributed to updated ratio definitions and scoring calibrations for the Capital subfactor, alongside improvements in BOB's asset quality and capitalization. The rating action follows the publication of Moody's updated Banks methodology on November 17, 2025.

The press release from Moody's also outlined potential future rating adjustments for Bank of Baroda. An upgrade to BOB's BCA could occur if its TCE/RWA ratio improves above 14% and its net income/tangible assets ratio increases above 1.3% on a sustained basis, assuming other credit fundamentals remain unchanged. Conversely, a downgrade could result if India's sovereign rating is downgraded or if the bank's BCA experiences a multi-notch downgrade due to factors such as accelerated loan growth, declining TCE/RWA ratio below 10.5%, or a sustained net income/tangible assets ratio below 0.5%.