CARE Ratings has reaffirmed Bank of Baroda’s credit ratings, assigning CARE A1+ to the bank’s Certificate of Deposit and confirming CARE AAA; Stable for its Tier-II Bonds. These ratings reflect Bank of Baroda’s systemic importance as a leading public sector bank, supported by the Indian Government. The ratings consider its extensive branch network and international presence, as well as comfortable capitalization levels.
Ratings Reaffirmed
Bank of Baroda’s credit ratings have been affirmed by CARE Ratings. The agency has assigned a CARE A1+ rating to the bank’s Certificate of Deposit and reaffirmed the CARE AAA; Stable rating for its Tier-II Bonds, indicating a stable outlook for the bank.
Key Rating Drivers
The ratings are supported by several factors:
Financial Performance
In FY25, Bank of Baroda showed improvement in asset quality parameters with lower incremental slippages, leading to lower credit costs, and this, alongside strong credit growth, has improved profitability. The bank’s ability to maintain asset quality remains a monitorable. Total deposits grew by ~11% in FY25.
The bank’s capital adequacy ratio (CAR) stood at 17.19% as of March 31, 2025, with a Tier-I CAR of 14.79% and a Common Equity Tier-I (CET I) of 13.78%.
Rating Sensitivities
Factors that could lead to a negative rating action/downgrade include:
Source: BSE
