Mumbai: Bank of Baroda has set an ambitious target of around 10% growth in its corporate loan book for FY27, backed by a strong pipeline of ₹50,000 crore in corporate lending proposals, according to the bank’s senior management.
₹4.56 Lakh Crore Corporate Book to Expand Further
The state-owned lender currently manages a corporate loan book of ₹4.56 lakh crore. The bank expects steady expansion driven by demand from infrastructure, manufacturing, and core industrial sectors.
Managing Director and CEO Debadatta Chand said the current pipeline reflects healthy credit demand despite concerns over slow private capital expenditure in the economy.
Read also: Bank of Baroda Approves ₹6,000 Crore Fund Raise via AT1 and Tier II Bonds to Boost Capital Strength
₹50,000 Crore Corporate Lending Pipeline in Focus
The bank’s total corporate lending pipeline stands at ₹50,000 crore, of which:
- 50% loans have already been sanctioned but not yet disbursed
- Remaining portion is under active discussion
Nearly two-thirds of the proposals are for term loans, indicating strong investment-linked demand, while the rest are for working capital requirements.
Strong Demand from Core and Renewable Sectors
Bank of Baroda reported healthy credit demand from key sectors including:
- Renewable energy projects
- Steel manufacturing
- Cement and infrastructure expansion
The bank also sees potential in telecom sector financing, depending on policy support and stakeholder participation in revival cases.
Focus on Margins, Cost of Funds and Yield Management
The bank aims to maintain net interest margins (NIM) in the range of 2.75% to 2.95%. To achieve this, it plans to:
- Shift corporate lending towards external benchmark-based rates
- Benefit from improved yields in government securities
- Optimize asset-liability management strategies
The bank also acknowledged continued pressure from rising deposit costs.
Stable Asset Quality and Strong Buffers
Management stated that asset quality remains stable, with no major concerns in the MSME portfolio. The government-backed ECLGS scheme continues to support borrowers and reduce risk exposure.
The bank has also maintained adequate provisioning buffers, including a ₹1,500 crore floating provision, to manage future credit transition requirements.
Comfortable Credit-Deposit Position
Bank of Baroda said its credit-deposit (CD) ratio remains in the comfortable range of 81%–83%, higher than many public sector peers, but still manageable under current liquidity conditions.
The bank also continues to explore diversified funding sources beyond traditional deposits to support lending growth.
About Bank of Baroda
Bank of Baroda is one of India’s leading public sector banks with a strong domestic and international presence. Established in 1908, the bank offers a wide range of financial services including corporate banking, retail banking, treasury operations, and international banking services, playing a key role in supporting India’s economic and credit growth.
