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Informist, Wednesday, Feb. 25, 2026

--CARE assigns 'AAA' rtg for Bank of Baroda green infra bonds of INR 100 bln 

NEW DELHI – CareEdge Ratings Ltd. Wednesday assigned 'AAA' rating to Bank of Baroda's INR-100-billion worth of green infrastructure bonds, with a 'stable' outlook, the state-owned bank said in an exchange filing. The rating agency also reaffirmed 'AAA' rating for Bank of Baroda's tier-II bonds worth INR 5 billion, INR 20 billion, and INR 4 billion, while keeping the outlook 'stable'. It has also reaffirmed 'A1+' rating for Bank of Baroda's certificate of deposit amounting to INR 200 billion, the lender said. 

"Ratings assigned to the Green Infrastructure bonds and reaffirmation of ratings assigned to long-term instruments and certificate of deposits of Bank of Baroda continues to factor in majority ownership of and continued and expected support from the Government of India to the bank, considering systemic importance being one of the largest public sector banks in India," CareEdge Ratings said. Bank of Baroda is India's second-largest state-owned bank and the government owns 64% stake in it. 

The state-owned bank's comfortable capitalisation levels, which support the bank fund its credit growth in near future, also supported the ratings, it said. Bank of Baroda's net profit was INR 50.55 billion for the December quarter, up over 4% on year and over 5% on a sequential basis.

CareEdge Ratings expects the bank's net interest margin to witness some pressure in 2025-26 (Apr-Mar), considering faster repricing of advances than deposits, which would result in a moderation in profitability for the bank in the near term. Bank of Baroda's global net interest margin for the December quarter was 2.79%, down 17 basis points from the September quarter.

The 'stable' outlook by the rating agency is on the back of expectation that the bank will continue to maintain its steady growth in advances and deposits in the medium term, while maintaining stable asset quality and comfortable capitalisation levels. Wednesday, shares of the bank closed 0.9% higher at INR 315.85 on the National Stock Exchange. End

Reported by Pratiksha

Edited by Akul Nishant Akhoury

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