CareEdge Global has assigned a 'BBB+/Stable' foreign currency issuer rating to Bank of Baroda and its USD 4 billion GMTN programme. This reflects the bank's systemic importance and government backing, with India owning 63.97%.

Bank of Baroda Receives 'BBB+/Stable' Foreign Currency Issuer Rating

Bank of Baroda's foreign currency issuer rating has been assigned 'CareEdge BBB+/Stable' by CareEdge Global. The rating also applies to the bank's USD 4 billion global medium-term notes (GMTN) programme.

Reader Takeaway: Strong credit profile confirmed by government backing; monitor net interest margins and specific loan segment asset quality.

What just happened

CareEdge Global has assigned Bank of Baroda a long-term foreign currency issuer rating of 'BBB+/Stable'. The same rating has been applied to the bank's USD 4 billion global medium-term notes (GMTN) programme.

This assessment highlights the bank's systemic importance and the strong likelihood of continued support from the government, which owns 63.97% of the bank.

Why this matters

The rating indicates a stable credit profile for Bank of Baroda in its foreign currency debt issuances. It also signifies confidence in the bank's financial health and its ability to meet foreign currency obligations, which is crucial for its international funding activities.

The backstory

As of March 31, 2026, Bank of Baroda reported total assets of Rs 20,092 billion and a profit after tax of Rs 200 billion on a standalone basis. Its Capital Adequacy Ratio (CAR) stood at 15.8%, above the regulatory minimum of 11.5%. Gross Non-Performing Assets (GNPA) improved to 1.9% from 2.3% in the previous year, and Net Non-Performing Assets (NNPA) declined to 0.4% from 0.6%.

Consolidated total assets were Rs 21,015 billion with a consolidated profit after tax of Rs 198 billion.

What changes now

The rating provides a stable outlook for the bank's foreign currency debt. The USD 4 billion GMTN programme is now officially rated, potentially making it more attractive to international investors.

Risks to watch

Concerns include potential profitability pressure due to repricing of advances versus deposit costs, which could affect net interest margins. Asset quality remains elevated in the MSME (approx. 6.1% GNPA) and Agriculture (approx. 4.5% GNPA) segments, indicating specific areas of vulnerability.

Peer comparison

As a major public sector lender, Bank of Baroda operates within a competitive landscape. Its 'BBB+/Stable' rating positions it well among its peers, reflecting its strong market standing and government backing.

Context metrics (time-bound)

• Total Assets (Standalone): Rs 20,092 billion (March 31, 2026)
• Profit After Tax (Standalone): Rs 200 billion (March 31, 2026)
• CAR (Standalone): 15.8% (March 31, 2026)
• GNPA (Standalone): 1.9% (March 31, 2026)
• NNPA (Standalone): 0.4% (March 31, 2026)

What to track next

Investors should monitor the bank's net interest margins and its performance in managing asset quality within the MSME and agricultural sectors, alongside overall business growth and profitability trends.