Bank of Baroda, India’s second-largest public sector bank, is aiming to double the size of its balance sheet over the next five years as it looks to strengthen its domestic and international presence amid India’s rapid economic expansion.
The bank’s Managing Director and CEO Debadatta Chand said scale and capital strength will become increasingly important as Indian lenders seek to compete with global banking giants.
“If India wants globally competitive banks, scale and capital base are very important,” Chand said in an interview, adding that consolidation offers long-term advantages for the banking sector.
The comments come at a time when policymakers are exploring ways to build larger Indian banks capable of financing the country’s ambitious infrastructure and industrial growth plans under Prime Minister Narendra Modi’s vision of transforming India into a developed economy by 2047.
Currently, only State Bank of India and HDFC Bank feature among the world’s top 100 banks by total assets.
Indian banks have witnessed strong balance sheet expansion in recent years, supported by rising credit demand, healthy deposit inflows, and accelerated infrastructure spending following the pandemic.
Over the past five years, Bank of Baroda’s total assets have grown nearly 75% to around ₹21 trillion ($219 billion) as of March 2026.
This growth outpaced several major peers, including:
- State Bank of India — around 72% asset growth
- Punjab National Bank — approximately 57% growth
Founded in 1908 by Maharaja Sayajirao Gaekwad III in western India, Bank of Baroda currently serves over 183 million customers across 17 countries through its domestic and international operations.
Chand said the lender plans to continue expanding aggressively across India while also strengthening overseas subsidiaries to enhance scale and international reach.
The bank expects broad-based loan growth across retail banking, agriculture financing, MSME lending, and corporate credit.
Industry experts believe India’s public sector banking landscape could witness further consolidation and expansion over the coming decade as lenders prepare to support large scale infrastructure, manufacturing, renewable energy, and digital economy investments.
The strategy also reflects a broader push among Indian lenders to improve global competitiveness, diversify revenue streams, and strengthen international operations amid rising economic influence.
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