Bank Of Baroda has informed the Exchange about Credit Rating
BANKBARODA · price
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Awaiting price reaction for this filing.
CARE Edge Ratings has reaffirmed Bank of Baroda's Tier-II Bonds at 'CARE AAA; Stable' outlook. The reaffirmation covers four outstanding bond tranches totaling ₹3,350 crore (₹500 crore, ₹450 crore, ₹400 crore, and ₹2,000 crore, with the last reduced from ₹2,920 crore). Three other Tier-II Bond ratings were withdrawn following full redemption on maturity or call option exercise, and 'No Due Certificates' were received from debenture trustees. The rating factors in the Government of India's 63.97% ownership and expected continued support, the bank's comfortable capitalisation (CAR of 17.19% as on March 31, 2025), improving asset quality (GNPA down to 2.26% from 2.92%), and 10% growth in net profit to ₹19,581 crore in FY25. Key monitorables include NIM pressure (contracted to 2.73% in FY25 from 2.96%) and a slippage ratio that rose to 1.23% in Q1FY26 due to an international account turning NPA.
The AAA Stable reaffirmation signals continued strong creditworthiness and is neutral to mildly positive for bondholders and shareholders. The bond redemptions and partial size reduction reflect healthy liability management, with no negative rating action triggered. Stock price impact is likely limited as the rating outcome was broadly expected and confirms the bank's strong financial standing.