Credit Rating

BCC:ISD:118:16:320 29.06.2026 The Vice-President, The Vice-President, B S E Ltd. National Stock Exchange of India Ltd. Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (E) Mumbai – 400 001 Mumbai – 400 051 BSE CODE-532134 CODE-BANKBARODA Madam/Dear Sir, Re: Bank of Baroda – Credit Rating We advise that the CareEdge Global Ratings has assigned ‘BBB+/Stable’ rating to foreign currency notes of Bank of Baroda. The detailed report dated 29-06-2026 is enclosed. We request you to take note of the above pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015 and upload the information on your website. Yours faithfully, S Balakumar Company Secretary बडौदा कॉप(cid:574)रेट स(cid:581)टर, सी-26, जी-(cid:222) लॉक, बा(cid:219)(cid:289)ा कुला(cid:91) कॉ(cid:224) (cid:220) ल(cid:200)े स, मुंबई 400 051, भारत. Baroda Corporate Centre, Bandra Kurla Complex, Mumbai 400 051, India फोन / Ph : 91 22 6698 5812 ई मेल / E Mail : companysecretary.bcc@bankofbaroda.bank.in वेब / Web : www.bankofbaroda.bank.in Rating Rationale June 29, 2026 ‘CareEdge BBB+/Stable’ rating assigned to foreign currency notes of Bank of Baroda CareEdge BBB+/Stable USD 1 billion senior unsecured notes* (Assigned) CareEdge BBB+/Stable USD 4 billion global medium-term notes^ (Reaffirmed) CareEdge BBB+/Stable Long-term foreign currency issuer rating (Reaffirmed) ^Assuming the notes issued under the programme would be senior and rank pari passu with the issuer’s other senior debt obligations. Facility-specific rating would be evaluated based on the instrument features once finalised closer to issuance. *Carved out of the above rated notes programme CareEdge Global has assigned a ‘CareEdge BBB+/Stable’ long-term foreign currency rating to Bank of Baroda's (BoB) USD 1 billion senior unsecured notes. CareEdge Global has also reaffirmed BoB's long-term foreign currency issuer rating and USD 4 billion global medium- term notes (GMTN) programme at ‘CareEdge BBB+/Stable’. Rationale BoB benefits from majority ownership by the Government of India (GoI; rated CareEdge BBB+/Stable ‘Unsolicited’), which holds a ~64% stake in the bank as of March 31, 2026. The bank’s systemic importance as the second-largest public sector bank (PSB) with a 5.5% share in domestic advances, high socio-political relevance, coupled with contagion risk, and strong public perception underscores the likelihood of strong, extraordinary sovereign support if required. The demonstrated history of capital infusion by the GoI into PSBs, along with BoB’s role in policy transmission and financial inclusion, results in its credit profile being equated to that of the sovereign. The GoI, through its Indradhanush framework, has demonstrated strong and sustained support to PSBs via recapitalisation packages and budgetary allocations, including total capital infusion of Rs 124 billion (FY18-FY20) into BoB. Further, the GoI’s majority stake, coupled with substantial board-level representation alongside the Reserve Bank of India (RBI), results in a high degree of oversight and control, thereby promoting institutional stability. BoB’s core credit profile is healthy, as demonstrated by a robust domestic market position, a sizeable overseas presence, comfortable capitalisation, and strong funding and liquidity. However, these strengths are partly offset by its average profitability and asset quality risks, particularly concentrated within the micro, small and medium enterprises (MSMEs) and agricultural segments. Rating Rationale June 29, 2026 Outlook The stable outlook for BoB, in line with the sovereign of India, reflects CareEdge Global’s expectation of continued support from the GoI and the bank’s ongoing strategic importance within the PSB framework. The rating outlook on BoB will move in tandem with CareEdge Global’s outlook on India’s sovereign rating. Rating sensitivities Upward factors • Any upward revision in the sovereign rating or outlook of India by CareEdge Global Downward factors • Any downward revision in the sovereign rating or outlook of India by CareEdge Global • Material dilution in support philosophy of the GoI or a significant decrease in its shareholding below the majority mark • Significant deterioration in its capitalisation profile or asset quality on a sustained basis indicating a weakening of systemic importance Analytical approach CareEdge Global has evaluated BoB’s business and financial risk profile on a consolidated basis, including its subsidiaries, considering the business and financial linkages as well as the shared brand. CareEdge Global has equated BoB’s rating with the GoI's rating, using its criteria for rating government-related entities (GRE). Key rating drivers Strengths High criticality, majority ownership, and strong support from the GoI BoB, as one of India’s leading PSBs, plays a pivotal role in providing financial and banking access to a large population, including in rural areas, through its extensive network of more than 8,600 branches. It operates within the broader PSB ecosystem, which collectively accounts for nearly 55% of total banking assets, enabling the government to channel credit to priority sectors such as agriculture, MSMEs, and infrastructure. PSBs, including BoB, also act as stabilising agents during periods of economic stress by supporting countercyclical lending and ensuring uninterrupted credit flow to key sectors, making them critical for the country’s economic and financial stability. Over the past decade, the GoI has strengthened PSBs through reforms, including recapitalisation of over Rs 3 trillion (FY16-FY21), consolidation of 27 PSBs into 12, and enhancements in governance and risk management. Given this close linkage, PSBs carry significant reputation risk for the GoI, as their performance shapes investor confidence and market perception of India’s financial stability. Therefore, the GoI has a strong moral obligation to extend timely financial support to such institutions. Additionally, the GoI and the RBI have consistently demonstrated such support not only to PSBs but also to the private Rating Rationale June 29, 2026 sector scheduled commercial banks (SCBs). Notably, there is no history of any SCB defaulting on depositors or lenders money in India. BoB’s majority holding reflects strong sovereign backing and underscores the likelihood of continued support in both normal and stress scenarios. Any potential distress or failure of a PSB typically has significant systemic implications, including erosion of investor confidence and heightened contagion risk, reinforcing the strong expectation of sovereign backing. Accordingly, one notch benefit of sovereign support is factored in BoB’s overall rating. Robust position in the domestic banking sector The bank is an important PSB in India, underpinned by its large scale of operations, strong market position, extensive distribution network, and long-standing franchise. As of March 2026, the bank accounted for ~5.3% of total deposits and ~5.5% of advances in the Indian banking system (March 2025: 5.5% and 5.6%), positioning it as the second PSB by advances. Its scale is further reflected in its consolidated total assets of Rs 21,015 billion as of March 2026. The bank benefits from a widespread domestic and international presence, with 8,600+ domestic branches, 80 overseas offices, over 9,500 ATMs, supported by a workforce of over 76,000 employees. Its global network spans 15 countries through 80 overseas offices, contributing ~18% to gross advances, and ~15% to total deposits. The amalgamation of Vijaya Bank and Dena Bank in April 2019 further strengthened its pan-India presence and franchise depth. Comfortable capitalisation BoB continues to have a comfortable capitalisation profile, with adequate cushion over the minimum regulatory requirements, supported by strong internal accruals over the past few years. As of March 31, 2026, the bank reported a capital adequacy ratio (CAR) of 15.8% (PY: 17.2%) and cor [Showing first 8,000 characters — download PDF for full document]