Bank of Baroda shifts domestic mix; 97% large loans A or above

Oct 30, 2026•3 min read

Bank of Baroda

BANKBARODA

Ask Iris

Bank of Baroda shifted its domestic credit mix towards retail, agriculture and micro, small and medium enterprises by September 2026 while reducing infrastructure exposure. BOB reported Rs 11.87944 lakh crore of gross domestic advances, with retail at 28.6% and agriculture at 17.0%; separately, 97% of qualifying domestic advances above Rs 50 crore were externally rated A or above.

What changed in BOB's domestic loan mix?

BOB's domestic loan book became less weighted towards corporate credit and more weighted towards retail, agriculture and micro, small and medium enterprises, or MSME, in the year to September 2026. Gross domestic advances rose 13.5% from Rs 10.46506 lakh crore in September 2025 to Rs 11.87944 lakh crore, while the corporate share fell to 35.8% from 38.3%. Corporate advances still increased 6.3% in value to Rs 4.25736 lakh crore.

Retail's share of gross domestic credit rose to 32.0% from 31.2%, agriculture's increased to 17.0% from 16.2%, and MSME's reached 15.2% from 14.3%. Together, retail, agriculture and MSME, which BOB describes as RAM, accounted for 64.2% of gross domestic credit in September 2026, up from 61.7% a year earlier. The 2.5-percentage-point increase in RAM matched the 2.5-percentage-point reduction in the corporate share.

Retail advances excluding pool purchases grew 18.6% year on year to Rs 3.24040 lakh crore, agriculture increased 19.0% to Rs 2.01946 lakh crore, and MSME rose 21.3% to Rs 1.75207 lakh crore. Within retail, gold loans increased 66.6% to Rs 13,693 crore, auto loans rose 27.8% to Rs 63,324 crore, and home loans rose 14.6% to Rs 1.59255 lakh crore. Agriculture gold loans increased 36.4% to Rs 91,609 crore.

The industry-outstanding table uses a different retail measure from the gross-domestic-credit share table. Retail loans in the industry table stood at Rs 3.39866 lakh crore, or 28.6% of gross domestic advances, while the 32.0% gross-domestic-credit share includes retail with pool, staff, LABOD and other items, as stated by BOB. This distinction explains why the reported retail share and retail outstanding are not directly interchangeable.

How much did BOB reduce infrastructure exposure?

BOB reduced infrastructure outstanding by Rs 7,712 crore during the year, taking the sector's share of gross domestic advances to 9.0% in September 2026 from 10.9% in September 2025. The infrastructure book declined from Rs 1.14408 lakh crore to Rs 1.06696 lakh crore even as gross domestic advances increased by Rs 1.41438 lakh crore.

Roads and ports accounted for the largest change within infrastructure. Outstanding exposure fell by Rs 18,221 crore to Rs 16,163 crore from Rs 34,384 crore, a reduction of about 53%, and its share of domestic advances dropped to 1.4% from 3.3%. Power moved in the opposite direction, increasing by Rs 9,692 crore to Rs 73,241 crore; its share was 6.2%, compared with 6.1% a year earlier.

Other infrastructure increased to Rs 12,533 crore from Rs 10,032 crore, while telecom declined to Rs 4,760 crore from Rs 6,442 crore. Outside infrastructure, all-engineering exposure rose to Rs 14,340 crore from Rs 8,091 crore, food processing increased to Rs 18,515 crore from Rs 14,037 crore, and basic metals and metal industry decreased to Rs 19,672 crore from Rs 23,308 crore. The lower infrastructure weight was therefore led chiefly by roads and ports rather than by reductions across every infrastructure category.

How highly rated are BOB's large domestic advances?

BOB reported that 97% of domestic advances above Rs 50 crore had an external rating of A or above in September 2026. The comparable proportion was 95% in September 2025, an increase of 2 percentage points. The presentation defines this distribution as external ratings for domestic advances above the Rs 50 crore threshold, rather than a rating profile for every domestic loan.

The BBB-rated portion declined to 2% from 3%, while the below-BBB portion fell to 1% from 2% over the same period. The 2-percentage-point rise in the A-and-above category therefore coincided with a combined 2-percentage-point reduction in the below-A categories. BOB did not provide outstanding balances for the three rating bands in this large-domestic-advance table.

This rating measure is separate from the industry composition data. Corporate advances were Rs 4.25736 lakh crore and the non-banking financial company, or NBFC, industry exposure was Rs 1.50092 lakh crore in September 2026, but the 97% measure applies to qualifying domestic advances across the rating-distribution universe. BOB did not provide a sector-by-sector rating split for domestic advances above Rs 50 crore.

What is in BOB's NBFC loan portfolio?

BOB's standard outstanding domestic NBFC portfolio was Rs 1.50092 lakh crore in September 2026, marginally below Rs 1.51466 lakh crore in June 2026. AAA-rated borrowers accounted for Rs 1.04983 lakh crore, or 69.94%, while AA-rated borrowers accounted for Rs 39,620 crore, or 26.40%. AAA and AA together represented 96.34% of the portfolio based on the displayed percentages.

A-rated NBFC exposure was Rs 4,978 crore, or 3.32%, and BBB exposure was Rs 475 crore, or 0.32%. NBFCs rated BB and below accounted for Rs 36 crore, or 0.02%, down from Rs 60 crore, or 0.04%, in June 2026. Including the A category, the displayed September shares indicate that 99.66% of the standard outstanding NBFC portfolio was rated A or above.

Ownership composition changed modestly between June and September 2026. NBFCs backed by large private institutions represented 44%, up from 43%, while those backed by public-sector undertakings, or PSUs, accounted for 14%, up from 13%. Central and state PSUs declined to 29% from 31%, and private others remained at 13%, leaving large-private-institution-backed NBFCs as the largest ownership group.

Conclusion

BOB's September 2026 data shows a domestic loan-book shift in mix and industry exposure. RAM reached 64.2% of gross domestic credit as retail, agriculture and MSME grew faster than corporate lending, while infrastructure fell to 9.0% of domestic advances. Roads and ports recorded the largest industry reduction, and the qualifying large-loan rating profile increased to 97% A or above; the Rs 1.50092 lakh crore NBFC portfolio was concentrated in AAA and AA exposures.

BOB did not disclose a future domestic-loan-mix target, an infrastructure-reduction plan or a scheduled portfolio event in the presentation. The unresolved points for subsequent disclosures are whether RAM continues to gain share against corporate credit, whether roads and ports exposure stabilises after reaching Rs 16,163 crore, and whether the A-and-above share of advances above Rs 50 crore remains above the 95% reported in September 2025.

Frequently Asked Questions

BOB reported retail at 32.0% of gross domestic credit in September 2026, compared with 31.2% a year earlier. Retail advances excluding pool purchases were Rs 3.24040 lakh crore, up 18.6% year on year. The industry-outstanding table separately showed retail loans of Rs 3.39866 lakh crore, or 28.6% of gross domestic advances.

BOB's infrastructure outstanding declined to Rs 1.06696 lakh crore in September 2026 from Rs 1.14408 lakh crore a year earlier. Roads and ports drove the reduction, falling to Rs 16,163 crore from Rs 34,384 crore. Power exposure increased to Rs 73,241 crore from Rs 63,549 crore over the same period.

The 97% figure covers externally rated domestic advances above Rs 50 crore as of September 2026. It increased from 95% in September 2025. BBB-rated advances accounted for 2% and below-BBB advances for 1% in the latest reported distribution.

BOB's standard outstanding domestic NBFC portfolio was Rs 1.50092 lakh crore in September 2026. That was slightly below Rs 1.51466 lakh crore in June 2026. AAA-rated exposures made up 69.94% of the September portfolio, while AA-rated exposures accounted for 26.40%.

NBFCs backed by large private institutions were BOB's largest ownership category at 44% in September 2026. Central and state PSUs followed at 29%, while PSU-backed NBFCs represented 14%. Private others accounted for the remaining 13%.