CARE Ratings reaffirms rating on Bank of Baroda's bank facilities worth Rs8,756.50 crore; stock spurts ~3.5%

8 Sep 2022 , 02:52 PM

Bank of Baroda informed that CARE Ratings Limited reaffirmed the rating on the bank’s facilities. The rating agency reviewed bank facilities worth Rs8,756.50 crore.

The rating has been reaffirmed at ‘CARE AAA’ with a Stable outlook.

The ratings continue to take into account majority ownership, demonstrated and expected continued support from the Government of India (GoI).

Bank of Baroda’s (BOB’s) systemic importance and position in the Indian banking sector as one of the largest public sector banks in terms of business (advances and deposits) and asset size was also one of the factors. Bank’s strong and established franchise through a pan-India branch network, which enables it to obtain low-cost and stable Current Account financing also had an impact on the ratings.

CARE Ratings has revoked the rating granted to Additional Tier I Bonds (Basel III) worth Rs2,325 crore and Lower Tier II Bonds (Basel II) worth Rs850 crore since the bank has redeemed these bonds.

At around 2.56 PM, Bank of Baroda was trading at Rs138.80 up by 3.43% from its previous closing of Rs134.20 on the BSE. The scrip touched intraday high and low of Rs139.85 and Rs135 respectively.

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