India Ratings and Research (Ind-Ra) has assigned Bank of Baroda's (BOB) Infrastructure and Affordable Housing Bonds an 'IND AAA' rating with a Stable Outlook, while affirming the existing ratings.
Ind-Ra continues to take a consolidated view of BOB and its subsidiaries while arriving at the ratings, because of a similar nature of operations.
The ratings continue to reflect BOB's high-systemic importance to the government of India (GoI; 63.97% stake as of September 2023), and hence, a high probability of support from the GoI, if required. The ratings also reflect BOB's large franchise with a pan-India and relatively large international presence, strong capitalisation, and superior liquidity and asset quality metrics, which are better than comparable public sector banks (PSBs).
For AT1 instruments, the agency considers the discretionary component, coupon omission risk and the writedown/conversion risk as key parameters to arrive at the rating. The agency recognises the unique going-concern loss absorption features that these bonds carry and differentiates them from the bank's senior debt, factoring in a higher probability of an ultimate loss for investors in these bonds.
Shares of Bank of Baroda was last trading in BSE at Rs. 191.25 as compared to the previous close of Rs. 195.55. The total number of shares traded during the day was 4298392 in over 17741 trades.
The stock hit an intraday high of Rs. 197.30 and intraday low of 190.60. The net turnover during the day was Rs. 826857610.00.