Bank of Baroda has received approval from the Reserve Bank of India (RBI) to establish a wholly-owned subsidiary. This new entity will focus on the Standalone Primary Dealer (SPD) business, with a capital infusion of up to ₹2,000 crores. This strategic move aims to strengthen the bank’s presence in the primary debt market and enhance its ability to participate in government securities trading.
Subsidiary for Primary Dealer Business
Bank of Baroda is set to establish a wholly owned subsidiary to focus on its Standalone Primary Dealer (SPD) business. The bank has received the necessary approvals from the Reserve Bank of India (RBI) to proceed with this strategic initiative. This announcement was made on February 6, 2026.
Capital Infusion
As part of the establishment, the bank plans to infuse capital of up to ₹2,000 crores into the new subsidiary. This significant investment demonstrates Bank of Baroda’s commitment to expanding its presence in the government securities market and enhancing its capabilities as a primary dealer.
Strategic Rationale
By creating a dedicated subsidiary for the Primary Dealer business, Bank of Baroda aims to streamline its operations and focus its expertise in this area. This will allow the bank to better manage risks, improve efficiency, and capitalize on opportunities in the government securities market. The establishment of the subsidiary is subject to specific conditions and further internal approvals.
Source: BSE
