Bank of Baroda (BANKBARODA) — Announcement

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📢 Key Event
CareEdge assigns BBB+/Stable rating to BoB's foreign currency notes

🔄 What Changed
Reaffirmed long-term foreign currency issuer rating and assigned new ratings to specific instruments

💡 Investor Takeaway
The rating confirms sovereign backing, reducing default risk for investors in BoB's debt instruments.

Bank of Baroda received a CareEdge Global BBB+/Stable credit rating for its USD 1 billion senior unsecured notes and USD 4 billion medium-term notes, reaffirming its long-term foreign currency issuer rating. The rating underscores sovereign support from the Indian government, which holds a 64% stake, and reflects the bank's systemic importance as India's second-largest public sector bank with extensive domestic and international operations. The rating rationale highlights robust capital adequacy (15.8% CAR), strong deposit growth (12% YoY to Rs 16,485 billion), and low-cost funding, though profitability moderated due to margin pressure. Asset quality remains stable with GNPA at 1.9% and provision coverage at 77%, but risks persist in MSME and agricultural segments. The rating aligns with India's sovereign outlook, emphasizing sustained government support as a core strength.

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