Moody's Affirms Bank Of Baroda's Baa3 Deposit Ratings With Stable Outlook

Moody's Ratings has affirmed Bank of Baroda's long-term local- and foreign-currency bank deposit ratings at Baa3 with a stable outlook, the public sector lender said in an exchange filing Friday.

The rating reflects Moody's expectation that India’s robust operating environment will continue to support the bank's fundamentals over the next 12–18 months. The agency noted improvements in Bank of Baroda’s solvency through lower bad loan ratios, stronger capitalisation and higher profitability.

The bank's funding and liquidity remain strong due to its PSU status and wide domestic branch presence, Moody’s said, though it flagged single-borrower concentration as a credit challenge.

Moody’s added that the Baa3 rating is two notches above the bank’s standalone credit profile of ba2, factoring in the likelihood of government support. However, an upgrade is unlikely unless India’s sovereign rating itself is revised upward.