Bank of Baroda Targets 10% Corporate Lending Growth in FY27
State-owned Bank of Baroda has announced a strategic target to expand its corporate loan book by over 10 percent in the fiscal year 2027. The bank currently holds a corporate portfolio worth ₹4.56 lakh crore and reports a robust pipeline of ₹50,000 crore, with half already sanctioned. Managing Director Debadatta Chand highlighted strong demand for term loans in core sectors such as steel, cement, and renewable power, countering concerns about sluggish private capital expenditure. To maintain net interest margins between 2.75 and 2.95 percent, the bank plans to realign its portfolio towards external benchmark-based lending rates and seek funding sources beyond traditional deposits, citing stable deposit costs. Chand expressed confidence in the bank's asset quality, particularly within the MSME sector, supported by government schemes like ECLGS. Additionally, the bank maintains a comfortable credit-deposit ratio of 81-83 percent and asserts that its current financial buffers, including a ₹1,500 crore floating provision, are sufficient to handle potential transitions in credit loss systems. The strategy also addresses potential opportunities in the telecom sector, contingent on policy measures and stakeholder collaboration.
Wire timeline
Bank of Baroda Targets 10% Corporate Lending Growth in FY27
State-owned Bank of Baroda has announced a strategic target to expand its corporate loan book by over 10 percent in the fiscal year 2027. The bank currently holds a corporate portfolio worth ₹4.56 lakh crore and reports a robust pipeline of ₹50,000 crore, with half already sanctioned. Managing Director Debadatta Chand highlighted strong demand for term loans in core sectors such as steel, cement, and renewable power, countering concerns about sluggish private capital expenditure. To maintain net interest margins between 2.75 and 2.95 percent, the bank plans to realign its portfolio towards external benchmark-based lending rates and seek funding sources beyond traditional deposits, citing stable deposit costs. Chand expressed confidence in the bank's asset quality, particularly within the MSME sector, supported by government schemes like ECLGS. Additionally, the bank maintains a comfortable credit-deposit ratio of 81-83 percent and asserts that its current financial buffers, including a ₹1,500 crore floating provision, are sufficient to handle potential transitions in credit loss systems. The strategy also addresses potential opportunities in the telecom sector, contingent on policy measures and stakeholder collaboration.
Home Page