Bank of Baroda Eyes 10% Corporate Loan Growth

State-owned Bank of Baroda is projecting a robust 10% growth for its substantial Rs 4.56 lakh crore corporate loan portfolio in the upcoming fiscal year, FY27. The bank has identified a current pipeline of Rs 50,000 crore in big-ticket lending opportunities to fuel this expansion.

Nearly two-thirds of these proposals are for term loans, suggesting strong demand for investment purposes, with the remainder allocated for working capital needs. Managing Director Debadatta Chand highlighted significant demand from the renewable power sector, alongside core industries such as steel and cement, which are seeking capacity expansion.

The bank is also focused on maintaining its net interest margins between 2.75-2.95%. This will involve realigning its corporate portfolio towards external benchmark-based lending rates, anticipating benefits from hardening yields in the government securities market. Measures will also be taken to manage deposit costs, with the bank exploring funding sources beyond traditional deposits to meet its liabilities.

Regarding asset quality, Bank of Baroda expressed confidence, noting no concerns within its micro, small, and medium enterprises portfolio. The floating provision of Rs 1,500 crore made in the March quarter is considered sufficient, providing adequate buffers for any potential credit losses during the transition to new accounting systems.