Bank of Baroda aims 10 per cent corporate growth in FY27, Rs 50,000 cr loans in pipeline

Mumbai: State-owned is aiming to grow its Rs 4.56 lakh crore corporate book by 10 per cent in FY27, and has pegged the current pipeline of such big-ticket lending at Rs 50,000 crore.

Amid worries on sluggish , its managing director and chief executive Debadatta Chand said nearly two-thirds of the proposals continue to be for term loans and the rest is for working capital, suggesting a good demand for investment purposes.

On the , where there is intense speculation on ‘s next moves as part of the revival process, Chand said right policy measures and coming together of banks and other stakeholders can result in new loans.

“Our overall pipeline is Rs 50,000 crore at present. Half of it is sanctioned and yet to be disbursed while the remaining is loan proposals under discussions,” Chand told PTI.

He said there is a strong demand from the renewable power and also like for capacity building.

In order to ensure that net interest margins come in the 2.75-2.95 per cent range, the bank will take measures like realigning the corporate portfolio towards the external benchmark-based lending rate, where it hopes the hardening of yields in the g-sec market will help it make better spreads.

Chand said the bank will have to work on yield on advances as it does not see any reprieve from the cost of deposits in the current situation.

The bank will continue to look for funding beyond deposits as well in order to take care of liabilities, Chand said, adding that the current base is sufficient to take care of the requirements.

He said the for the bank has always been elevated when compared with state-run peers, and added that it is comfortable operating with the CD ratio in the 81-83 per cent range.

From an asset quality perspective, he said the bank does not have any concerns in its micro, small land medium enterprises portfolio and added that the government-initiated will help borrowers.

The floating provision of Rs 1,500 crore made in the March quarter has not been made for expected credit loss (ECL) system, Chand said, asserting that its current buffers are sufficient to take care of the requirements that will come by way of the transition.