CRISIL

State-owned Bank of Baroda raised Rs 5,000 crore through ten-year infrastructure bonds at a coupon rate of 7.23 percent, sources said. Additionally, the Indian Railway Finance Corporation (IRFC) raised Rs 2,780 crore through ten-year bonds at a cut-off rate of 7.25 percent. According to sources, BoB received a strong market response, with total demand reaching Rs 14,830 crore, 7.5 times the base issue size, and approximately three times the total issue size, across 110 bids. The bank decided to retain the full issue amount of Rs 5,000 crore. In addition, to railway stock, IRFC aimed to raise Rs 3,000 crore, with a base issue size of Rs 500 crore and a green shoe option of Rs 2,500 crore. Sources said IRFC, received bids worth Rs 6,030 crore but retained Rs 2,780 crore, falling short of the full issue size.

Bank of Baroda raises Rs 5,000 crore via 10-year infrastructure bond at 7.23% coupon rate

Bank of Baroda (Bank), one of India’s leading public sector banks, announced the launch of five all-women bank branches under the motto “By Women, For Women” in the states of Odisha & Jharkhand. These branches, staffed entirely by women employees, are designed to create a supportive and empowering environment for both the Bank’s women employees and women customers as well as general customers at large. The Bank is opening three such branches in Odisha and two in Jharkhand. Out of the 5 branches, three are urban branches and two are rural. This initiative is a part of the Bank’s ongoing commitment to empower women, unleashing their true potential and promoting gender parity. By encouraging women employees to take the lead in managing the overall operations of these branches, it gives them greater opportunities for professional growth and to aspire for higher leadership roles in the Bank.

Bank of Baroda Unveils 5 All-Women Branches

Large banks such as Bank of Baroda and Canara Bank collectively shed about ₹54,000 crore of corporate loans in the June quarter to protect their net interest margins from falling sharply. These loans, largely extended to various public sector undertakings, came under pressure for repricing following the 100 basis points (bps) repo rate cut since February. Some of these organisations sought revisions to their existing loans, beyond the already reduced rates.

Bank of Baroda, Canara Bank let go of ₹54,000 crore loans for margin safety

BOB’s asset quality improved in FY25, with GNPA falling to 2.26% and NNPA to 0.58%, backed by a strong 93.29% PCR. Despite a Q1FY26 slippage spike to 1.23% from an international account, the bank targets sub-1% slippages through high-rated corporate lending and expects stable asset quality to persist.




The issuer has made timely interest payment history.

Shri Debadatta Chand , MD and CEO

The Government of India (GoI) holds a majority 63.97% stake in BOB as of June 2025. As a systemically important PSB, the bank receives consistent GoI support through capital infusions and reforms to improve asset quality. This sovereign backing ensures timely financial assistance if required and remains a key driver of its credit ratings.


As India’s third-largest PSB with an 11-decade legacy, Bank of Baroda (BOB) operates a vast network of 8,508 branches and 9,316 ATMs. By March 2025, net advances hit ₹12.10 lakh crore and total deposits grew 11% to ₹14.72 lakh crore, outperforming industry averages. Despite a rising cost of funds, BOB maintains a strong, competitive funding base with a domestic CASA ratio of 39.33% as of June 2025.




BOB maintains strong capitalization through internal accruals and improved profitability. As of June 2025, its CAR (17.61%) and CET-I (14.12%) significantly exceed regulatory minimums (11.5% and 8%, respectively). This robust cushion supports growth and provides a solid buffer against asset quality risks, with CareEdge Ratings expecting this stability to persist.


In FY25, BOB’s gross advances grew 12.83% (net: 13.49%), surpassing the 11.1% industry average. Growth was driven by the RAM (Retail, Agri, MSME) segments, which now comprise 47% of global advances, while wholesale lending grew at a slower 8.77%.


In FY25, BOB’s income rose 9% to ₹138,089 crore, though higher deposit costs narrowed NIM to 2.73%. Despite margin pressure, net profit grew 10% to ₹19,581 crore due to lower credit costs (0.36%). By Q1FY26, ROTA stayed stable at 1.17%, even as NIM dipped to 2.59% due to repricing lags.


Rating agency	Rating	Needle position
IND	AA + /Stable	near High Safety
CRISIL	AA + /Stable	near High Safety

Security Name: 8.25% Bank Of Baroda (P) Call : 17 Jul 2025

ISIN: INE028A08216

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