Bank of Baroda makes a corporate announcement

The latest annual-report excerpts available here do not contain the specific NSE investment line item, so the current carrying value and historical acquisition cost cannot be stated reliably from the cited material. The annual report only states the general accounting framework: investments are prepared under the historical-cost convention unless otherwise stated ^[1].

What is disclosed is that Bank of Baroda proposes to sell up to 7,690,375 NSE shares, equal to 35% of its holding, through the NSE IPO’s offer-for-sale, subject to approvals ^[2]. This implies a total holding of approximately 21,972,500 shares (derived from 7,690,375 ÷ 35%).

Accordingly:

• Carrying value of the full NSE holding: not separately reported in the cited annual-report passages.
• Historical cost of the full holding: not separately reported in the cited annual-report passages.
• 35% portion: economically represents 35% of both the carrying amount and historical cost, assuming the shares have a uniform cost basis.
• Sale proceeds: cannot be compared with either amount yet because the OFS price and final consideration were not disclosed; the bank said consideration would be received upon completion of the OFS ^[2].

The capital-market exposure figure of Rs 4,538.91 Crores in the annual report is a broader exposure measure and should not be treated as the carrying value of the NSE investment ^[3].

Estimated CET1 accretion: not quantifiable from the disclosed figures.

Bank of Baroda has reportedly proposed selling up to 35% of its NSE holding through an IPO offer-for-sale ^[4]. However, the disclosed information does not provide the sale proceeds, carrying value of the NSE investment, applicable tax rate, or the portion of the gain eligible for CET1 recognition.

The calculation would be:

CET1 accretion = (sale proceeds − carrying value − tax on capital gain) ÷ risk-weighted assets

The bank’s latest standalone CET1 ratio was 13.90% and consolidated CET1 was 14.36% as of June 2026 ^[5]. Therefore, the divestment could increase the ratio by:

Accretion in percentage points = after-tax capital gain ÷ applicable RWA × 100

A numerical estimate cannot be responsibly derived until the IPO/OFS valuation, investment carrying value, tax treatment, and relevant RWA basis are disclosed.

Residual book value: If the full 35% divestment is completed, Bank of Baroda would retain 65% of its pre-sale NSE carrying value. The filing does not disclose the pre-sale book value of the NSE investment, so the residual cannot be stated as an absolute Rs crore amount. On the share count, the bank would retain approximately 1,42,82,125 NSE shares, derived from the proposed sale of 7,690,375 shares representing 35% of its holding. ^[6]

Further reduction: No timeline for another sale or complete exit is specified. The only stated timetable is for the current OFS, with completion expected by end-September 2026; the shares were transferred to escrow on 8 September 2026 and sale proceeds are payable after the OFS. ^[7]

The filing makes the transaction subject to applicable regulatory approvals, but it does not identify an RBI/SEBI requirement or deadline requiring Bank of Baroda to reduce the remaining 65% exposure. Therefore, the residual holding should be treated as an ongoing investment unless the bank separately announces a further divestment plan. ^[6]