Bank of Baroda — Credit Ratings, 04-07-2025: Credit Rating

Moody's has reaffirmed Bank of Baroda's Baa3 long-term deposit ratings with a stable outlook, reflecting improved solvency marked by a lower nonperforming loan ratio of 2.3%, stronger capitalization (TCE/RWA at 12.2%), and steady profitability (net income/tangible assets around 1.2%). The bank benefits from a robust funding profile driven by a granular retail deposit base and good liquidity, supported by its public-sector status and strong government ownership (64%). While asset quality in retail loans shows signs of strain, overall credit costs remain low at 0.47%. The rating stability supports Bank of Baroda’s borrowing costs and investor confidence, underpinned by expected ongoing government support and a stable operating environment in India over the next 12-18 months.