Bank of Baroda deploys ₹2,704 crore in renewable energy

Bank of Baroda deployed the full ₹2,704.26 crore mobilised through green deposits in renewable energy by September 30, 2026. It also said projects refinanced with proceeds from its ₹10,000 crore Green Infrastructure Bonds avoided approximately 19.84 lakh tCO₂eq of net greenhouse-gas emissions, alongside ₹31,945 crore of corporate renewable-energy lending.

How did Bank of Baroda deploy its green deposits?

Bank of Baroda said it deployed all ₹2,704.26 crore of green-deposit proceeds in the renewable-energy sector by September 30, 2026. The Bank reported green deposits outstanding of ₹1,934.15 crore on that date, distinguishing the outstanding balance from total deposits mobilised and deployed.

The presentation identifies renewable energy as the destination for the entire green-deposit pool, but does not provide a technology-wise allocation, project count or emissions estimate for those proceeds. This pool was smaller than the Bank’s ₹31,945 crore outstanding corporate-credit financing for renewable-energy projects, which represents the wider renewable-energy lending book.

Bank of Baroda also reported a memorandum of understanding with KFW under its Climate-friendly Energy Generation I programme to refinance certain solar-energy investments. A separate memorandum with IREDA covers co-lending or co-origination for renewable-energy projects, as well as loan syndication and underwriting.

What did Bank of Baroda report on its green bonds?

Bank of Baroda issued ₹10,000 crore of seven-year Long-Term Green Infrastructure Bonds on March 4, 2026. The Bank said proceeds were utilised or were being utilised for refinancing and fresh deployment in eligible renewable-energy projects, so the presentation does not state that all bond proceeds had been deployed by September 30, 2026.

The issue had a ₹5,000 crore base size and was oversubscribed three times, with a 7.10% cut-off coupon. Bank of Baroda said the bonds were rated AAA with stable outlooks by CARE Ratings and ICRA Ratings, and that it undertook SEBI disclosure requirements covering environmental and social risk assessment, third-party impact assessment and verification of refinanced projects.

The Bank reported approximately 19.84 lakh tCO₂eq of net greenhouse-gas emissions avoided through projects refinanced using Green Infrastructure Bond proceeds. That impact figure applies to refinanced projects, while the stated use of proceeds includes both refinancing and fresh renewable-energy deployment; the presentation does not disclose the allocation between those two uses.

Is Bank of Baroda on track for its 2027 climate targets?

Bank of Baroda said it achieved a 27.65% reduction in Scope 1 and Scope 2 emissions from its FY24 base year, ahead of its stated target of a 20.00% reduction by FY 2027. The reported reduction was therefore 7.65 percentage points above the target threshold.

Renewable energy made up 38.05% of the Bank’s total energy-sector financing as of September 30, 2026, against a 40.00% target for 2027. The financing share was 1.95 percentage points below the stated target, unlike the operational-emissions measure, which had already exceeded its FY 2027 threshold.

Bank of Baroda said continuous actions were under way towards its net-zero target for 2057. Its Board-approved Sustainable Financing Framework, formulated in January 2026, provides a structure for issuing green, social and sustainability bonds, while the Bank reported ₹3,218.33 crore invested in sovereign green bonds as of September 30, 2026.

What other sustainable-finance and operational measures did Bank of Baroda disclose?

Bank of Baroda’s ₹31,945 crore corporate-credit renewable-energy portfolio includes financing for solar-powered pumps, compressed biogas plants, grid-connected solar plants and other renewable-power plants for farmers. The presentation also refers to financing encouraged for micro-irrigation, but does not give outstanding loan amounts for the individual products.

The Bank reported that 541 owned, leased and Rural Self Employment Training Institute premises, with 5.42 megawatts of solar capacity, were operating on solar energy. These sites had reduced approximately 12,035 tonnes of carbon-dioxide emissions, while electric-vehicle charging infrastructure had been provided at seven owned premises and seven owned buildings had Indian Green Building Council certification.

Bank of Baroda launched bob Green Plug to support public-utility electric-vehicle charging infrastructure and introduced a Carbon Calculator on August 20, 2026. It also reported a pilot artificial-intelligence electricity-bill-management platform and a remote bill audit in Bengaluru Zone, although it did not quantify their contribution to the reported 27.65% operational-emissions reduction.

Conclusion

Bank of Baroda’s disclosures separate its green funding mechanisms from its broader renewable-energy lending. The Bank reported full deployment of ₹2,704.26 crore of green-deposit proceeds, while its ₹10,000 crore bond issue was being used for refinancing and fresh eligible projects; the stated 19.84 lakh tCO₂eq impact relates specifically to refinanced projects.

The next disclosed milestones are the 40.00% renewable-energy share of energy-sector financing target for 2027 and the net-zero target for 2057. Investors and stakeholders can also watch for further disclosure on the split between refinancing and fresh bond deployment, as well as more detail on green-deposit allocations after September 30, 2026.