Press Release

Press Release

September 23, 2026

BOBCARD LIMITED
Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr) (SEBI)	Quantum (Rs. Cr) (Other FSR)	Long Term Rating	Short Term Rating	Regulated By
BOND	100.00	0.00	ACUITE AAA \| Stable \| Reaffirmed	-	SEBI
Non Convertible Debentures (NCD)	80.00	0.00	ACUITE AAA \| Stable \| Assigned	-	SEBI
Total Outstanding	180.00	0.00	-	-	-
Total Withdrawn	0.00	0.00	-	-	-

Note:- For activities or ratings of instruments falling under the purview of Financial Sector Regulators other than SEBI, the grievance / dispute redressal mechanisms and investor protection mechanisms provided by SEBI shall not be available.

Rating Rationale

Acuité has reaffirmed the long-term rating of ‘ACUITE AAA’ (read as ACUITE triple A) on the Rs. 100.00 crore Perpetual Bonds (Perpetual debt instruments in the form of Non-Convertible debentures) of BOBCARD Limited. The outlook is 'Stable'.

Acuité has assigned the long-term rating of ‘ACUITE AAA’ (read as ACUITE triple A) on the Rs. 80.00 crore Proposed Unsecured Subordinated Perpetual Non-Convertible debenturesof BOBCARD Limited. The outlook is 'Stable'.

Rationale for the rating
The ratings on BOBCARD centrally factor in the company’s strategic importance to, and the expectation of strong support from, its parent, Bank of Baroda. As on date, BOB holds 100% stake in BOBCARD. In FY23 Bank of Baroda had infused Rs. 700 Cr. into BOBCARD and Rs. 300 Cr. in FY25, which shows the continuous support of Bank of Baroda for BOBCARD. Moreover, it is expected that in FY27 another Rs 300 Cr. is expected to be infused by BOB (subject to regulatory approval) which again shows the continuous support from the parent entity. The firms CAR stood at 19.23% in FY-26 with Tier 1 Capital at 16.42% (FY25 CAR 22.01% and Tier 1 19.07%). The profitability of BOBCARD has seen a decline in FY-26 where PAT stood at Rs 39.59 Cr. and in FY-25 it stood at Rs 73.10 Cr. Moreover, total income net of interest expenses has improved, where in FY26 the total income stood at Rs 1563.17 Cr. and 1425.34 Cr. in FY25. Asset quality remains an area of focus, with GNPA at 4.43% in FY26 compared with 3.08% in FY25, while NNPA stood at 2.39% versus 1.27% in FY25. The management continues to focus on strengthening asset quality and improving recovery and resolution efforts.
The rating also factors in the company’s adequate capitalization. These strengths are partially offset by small, though modest scale of operations, modest earnings and modest asset quality metrics.

About the company

Wholly owned by Bank of Baroda (BoB), BOBCARD Limited (formerly, BoB Financial Solutions Limited) was incorporated in September 1994 as a credit card issuing non-banking financial company (NBFC). Its main business has been credit card issuance. In January 2024, the company underwent a rebranding, changing its name from BoB Financial Solutions Limited to BOBCARD Limited. Shri Saravanakumar A, present MD & CEO of BOBCARD comes with strong Academic background and rich experience in Banking sector. Shri Saravanakumar is a seasoned Banker with long Experience covering all the aspects of Banking in various positions such as Branch Head, member of Faculty at Bank of Baroda Apex Academy, MD & CEO of Bank of Baroda Kenya Ltd, Zonal Head and Chief General Manager of Retail Liabilities & NRI Business vertical of Bank of Baroda. BOBCARD is headquartered in Mumbai, Maharashtra.

Unsupported Rating

Not applicable

Analytical Approach

Acuité has adopted the standalone approach while assessing the business and financial risk profile of BOBCARD. The standalone approach, however, also duly factors in the support expectations from the parent, i.e. Bank of Baroda.

Key Rating Drivers

Strength

Strategic importance to, and expectation of strong support from, parent Bank of Baroda

BoB is expected to provide substantial support given BOBCARD's growing strategic relevance to the parent, as well as BoB's strong moral commitment due to ownership and brand sharing. The rating also takes into account BoB's stated determination to maintain a majority shareholding in BOBCARD and support it in the event of any future stress or exigencies.

While the current size of activities is limited, the strategic relevance is growing with a larger emphasis on the credit card business; BOBCARD is the platform via which the credit card business is conducted. A competent management team has been established, and the company has already changed its card management system to improve client experience, credit monitoring, and payments. Investing in technology to increase capacity will enable BOBCARD to penetrate the market through both open and digital channels. Board-level monitoring from BoB is expected to remain strong, while operational synergies will increase.

BoB maintains a 100% ownership in BOBCARD and has invested Rs 1275 crore since its creation, including Rs. 300 Cr. in FY25 , Rs 400 crore in March 2023 and Rs 300 crore in June 2022. Acuite Ratings believes that BOBCARD remains a key strategic subsidiary for BOB, as it manages the credit card business, which is crucial to the bank's retail strategy. Furthermore, name and brand sharing, operational, management, and board monitoring from BOB are planned to continue after the disposal.

Adequate capitalisation

BOBCARD's capitalisation parameters are adequate, having a total capital ratio of 19.23% as of March 31, 2026 from 22.01% as of March 31, 2025, following the adjustment of risk weights for consumer loans as per the RBI's direction in November 2023. The gearing stood at 3.65 times as of March 31, 2026, from 3.44 times on March 31, 2025. The steady-state gearing is intended to stay below 5 times. Capitalization is supported by the parent's timely equity injections. BoB infused Rs. 300 Cr. in FY25 and Rs 400 crore in March 2023 and Rs 300 crore in July 2022, bringing the total equity investment to Rs 1275 crore since inception. Moreover, further significant capital infusion is expected in FY27 to enhance BOBCARD's operational performance.

Weakness

Stable asset quality metrics

The gross NPA deteriorated to 4.43% in FY26, compared to 3.08% in FY 2025 and 3.67% in FY 2024. This was due to portfolio growth and an increase in salaried customers. Net NPAs stood at 2.39% as on March 31 2026 and 1.27% as of March 31, 2025, according to IND-AS accounting standards.

Collection efficiency continued at 90-93% from FY26. BOBCARD has strengthened its risk management methods for customer sourcing over time. The organization has built effective transaction monitoring and fraud prevention systems, which will positively benefit the overall portfolio performance of the company. Nevertheless, given the segment of operations and amidst the economic environment, the ability of the company to manage its asset quality would remain a key monitorable.

Modest earnings profile

The company's revenue mostly originates from credit card transactions.After reporting losses until fiscal 2022, the company began to make profits, which were aided by an increase in operating size. In FY26, the company reported a PAT of Rs 39.59 crore, compared to Rs 73.10 crore in FY25. The company reported lower operating expense to earning assets y-o-y; these stood at 14.99% in FY26, compared with 17.88% in FY25. As the company grows, operating expenses are likely to become more consistent. Nonetheless, the company's ability to manage profitability while expanding its portfolio remains an important metric.

Scale of operations

The majority of the company's revenue comes from Bank of Baroda's existing 140 million client base. Around 90% of leads are produced from BoB branches. To grow operations, the company is investing in technology, processes, and procedures to minimize turnaround time and acquisition costs, which will eventually lead to higher market share. Despite rapid development, BOBCARD's market share in terms of outstanding cards is still modest at about 2%, making it a minor player in the credit card market for the medium term.

Assessment of Adequacy of Credit Enhancement under various scenarios including stress scenarios (applicable for ratings factoring specified support considerations with or without the “CE” suffix)

Acuite takes into consideration the benefit derived by Bobcard from the 100% wholly owned ownership of Bank of Baroda.

Stress case Scenario

Acuite believes that given the Bank of Baroda ownership, Bobcard will be able to service its debt on time, even in a stress scenario.

ESG Factors Relevant for Rating

Public sector banks play a significant role in promoting financial inclusion in the country including facilitation of banking services in unbanked areas. Healthy corporate governance practices are important for sustainability in a bank’s long term performance. Some of the critical governance factors in the banking sector include board independence and diversity, effectiveness of the board sub committees, shareholders’ rights as well as policies on KMP compensation and business ethics. Further, for the financial services sector, data privacy, security of financial instruments and responsible investments are relevant social factors. Other material social factors involve employee management and talent retention given the manpower intensive nature of banking operations and various initiatives for community support and development. While the banking sector has low exposure to environmental risks, energy efficiency and electronic waste management carry moderate materiality. Bank of Baroda and BOBCARD have taken multiple steps towards enhancement of shareholder rights. The bank has formed a stakeholders’ relationship committee for redressal of grievances of shareholders and investors. The bank board also has a committee for performance evaluation of MD & CEO, Executive Directors and General Managers; this committee is constituted as per Government of India, Ministry of Finance, Department of Financial Services directives. The bank has taken initiatives and programmes for improvement of business ethics; these include full, accurate timely and meaningful disclosures in the periodic reports required to be filed by the Bank with government and regulatory agencies. In the environmental category, the bank has financing products or services that help develop clean or renewable energy. Further in the social category, the bank continues to take initiatives towards career development of its employees by bridging the skill gap and imparting training through its 7 training colleges. The bank has recognised the importance of data privacy and has taken several initiatives towards it; it has put in place Captive Security Operation Centre (SOC) at Data Center and has also employed information security tools for Real-time monitoring of Information Security breach attempts / incidents / events on 24x7 basis. Some of the programmes of the bank under Corporate Social Responsibility (CSR) include engagement in Swachh Bharat Abhiyan,Beti Bachao Beti Padhao Abhiyan, rural socioeconomic development and health care to poor and under privileged.

Rating Sensitivity

Potential triggers (individual or collective) for an upward rating action:

Not Applicable

Potential triggers (individual or collective) for a downward rating action:

Deterioration in asset quality metrics as reflected by GNPA increasing beyond 6%
Any sharp deterioration in capital position of BOBCARD with capital adequacy coming closer to the regulatory minimum
Sharp deterioration in credit rating movement of Bank of Baroda

All Covenants

1. INTEREST RATE AND MANNER OF PAYMENT

1.1 The Debentures shall carry interest at the interest rate set out in the Private Placement Offer Letter from the Deemed Date of Allotment.

1.2 The Interest rate is floating with quarterly reset, payable annually from the Deemed Date of Allotment until redemption of the Debentures or may otherwise be set out in the Term Sheet.

1.3 The Interest payable on Debentures shall be computed on actual/actual day count basis.

1.4 The Interest Rate shall be as specified in the Summary Term Sheet.

1.5 The payment of Interest on Debentures, shall be made to the Debenture Holders, whose name is registered in the Register of Debenture Holders on the Record Date.

1.6 The final Interest for Debentures shall be paid along with the redemption proceeds.

1.7 As the pay-in date and the Deemed Date of Allotment fall on the same date, interest on Application money for Debentures shall not be payable.

1.8 Further, if the date of payment of Interest rate for Debentures specified does not fall on a working day, the Interest payment for Debentures shall be made on the following working day without any liability of Interest from the original date to the actual date of payment.

2. DEFAULT INTEREST

2.1 The Issuer shall pay default interest of 2% (two percent) per annum over the Interest Rate for the defaulting period in case of default in payment of Interest or Redemption Amount.

2.2 The Issuer shall pay default interest of 2% (two percent) per annuum over the Interest Rate for the period of delay in cases where the Debenture Trust Deed is not executed in accordance with the timeline under Applicable Law.

2.3 The Issuer shall pay default interest 1% (one percent) per annum over the Coupon Rate will be payable by the Issuer for the period of delay between the Deemed Date of Allotment and the date of listing, in accordance with the timeline under Applicable Law.

2.4 In case of delay of allotment of debt securities beyond the stipulated time period, the Issuer will comply with applicable regulatory requirements, if any, with respect to such delay.

3. LOCK – IN CLAUSE

a. The PDIs shall be subject to lock-in clause in terms of which the Issuer may defer the payment of Coupon if:

i. the Issuer’s capital to risk assets ratio (“CRAR”) is below the minimum regulatory requirement prescribed by RBI; or

ii. the impact of such payment results in Issuer’s CRAR falling below or remaining below minimum regulatory requirement prescribed by RBI.

b. However, the Issuer may pay interest with prior approval of RBI when the impact of such payment may result in net loss or increase in net loss, provided the CRAR remains above the minimum regulatory requirement prescribed by RBI.

c. The Coupon shall not be cumulative except in cases as in ‘a.’

d. All instances of invocation of the lock-in clause shall be notified by the Issuer to the Regional Office of Department of Supervision of the Reserve Bank in whose jurisdiction it is registered.

Liquidity Position

Adequate

Bobcard’s liquidity position is supported by its parent company Bank of Baroda. The company’s liquidity position remains adequate, supported by its comfortable capitalization profile. As per the ALM statement dated June 30, 2026, borrowings from bank stood at Rs.5107.25 crore up to the one-year period against expected receivables of Rs.5421.96 crore over the same period, resulting in a cumulative positive mismatch of Rs.314.71.46 crore up to one year. The company has Cash and Cash Equivalents of Rs.503.82 Cr. as on 31st March 2026. Further, the company maintained a comfortable net worth of Rs.1476.01 crore and CRAR of 19.23% as on March 31, 2026. The company’s liquidity profile provides adequate cushion to meet its near-term repayment obligations with access to borrowings.

Outlook : Stable

Other Factors affecting Rating

None

Key Financials - Standalone / Originator

Particulars	Unit	FY26 (Actual)	FY25 (Actual)
Total Assets	Rs. Cr.	7447.06	6738.89
Total Income**	Rs. Cr.	1563.17	1425.34
Profit After Tax (PAT)	Rs. Cr.	39.59	73.10
AUM	Rs. Cr.	6300.00	5940.4
Net Advances	Rs. Cr.	6030.22	5642.26
Capital Adecuacy	(%)	19.23	22.01
Capital Adecuacy (Tier 1 Capital)	(%)	16.42	19.07
Gross NPA	(%)	4.43	3.08
Net NPA	(%)	2.39	1.27
Return on Average Assets (RoAA)	(%)	0.56	1.23

*As per Acuite Calculations
**Total income equals to Net Interest Income plus other income

Status of non-cooperation with previous CRA (if applicable):

Not Applicable.

Any other information

None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm
• Covered Bonds: https://www.acuite.in/view-rating-criteria-83.htm
• Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm
• Group And Parent Support: https://www.acuite.in/view-rating-criteria-47.htm
• Hybrid Instruments Issued By NBFCs & HFCs: https://www.acuite.in/view-rating-criteria-56.htm
• Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm

Note on complexity levels of the rated instrument

In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date	Name of Instruments/Facilities	Term	Amount (Rs. Cr)	Rating/Outlook
24 Sep 2025	Bond	Long Term	100.00	ACUITE AAA \| Stable (Reaffirmed)
24 Sep 2024	Proposed Perpetual Additional Tier I Bonds	Long Term	100.00	ACUITE AAA \| Stable (Assigned)

Annexure - Details of instruments rated

Lender’s Name	ISIN	Facilities	Listing Status	Regulated By	Date Of Issuance	Coupon Rate	Maturity Date	Quantum (Rs. Cr.)	Complexity Level	Rating
Not Applicable	INE027208037	Bond	Listed	SEBI	30 Sep 2024	8.47	30 Sep 9999	100.00	Simple	ACUITE AAA \| Stable \| Reaffirmed
Not Applicable	Not avl. / Not appl.	Proposed Unsecured subordinated perpetual non-convertible debentures	Proposed to be Listed	SEBI	Not avl. / Not appl.	Not avl. / Not appl.	Not avl. / Not appl.	80.00	Highly Complex	ACUITE AAA \| Stable \| Assigned

*Annexure 2 - List of Entities (applicable for Consolidation or Parent / Group / Govt. Support)

Sr. No.	Company Name
1	BOBCARD Limited
2	Bank of Baroda Ltd.

Contacts

Mohit Jain
Chief Analytical Officer - Rating Operations

Eshan Jain
Senior Manager - Rating Operations

Contact details exclusively for investors and lenders

Mob: +91 8591310146
Email ID: analyticalsupport@acuite.in

List of instruments and names of regulators of the instruments

As required by SEBI Circular (SEBI/HO/DDHS/DDHS-PoD-2/I/4685/2026) dated February 10, 2026, a list of activities or instruments falling under the purview of various Financial Sector Regulators (FSRs), along with the names of respective FSRs, is being disclosed below:
A. Rating Activity:

Sr. No.	Instrument / activity Name	Regulator of the instrument
1	Listed/Proposed to be listed Bonds/Debentures/Preference Shares (all securities)	SEBI
2	Unlisted/Proposed to be unlisted Bonds/Debentures/ Preference share (all securities)	MCA
3	Listed PTCs / Securitisation Notes (originated by entities regulated by RBI)¹ ⁶	RBI
4	Listed PTCs / Securitisation Notes (originated by entities not regulated by RBI)¹	SEBI
5	Unlisted PTCs / Securitisation Notes (originated by entities regulated by RBI)¹	RBI
6	Listed Commercial Paper and NCDs with original maturity less than 1 year	RBI
7	Unlisted Commercial Paper and NCDs with original maturity less than 1 year	RBI
8	Loan Facilities (Fund/Non-Fund Based) from Bank / NBFCs/ NHB/ FIs ²	RBI
9	External Commercial Borrowings and other similar borrowings	RBI
10	Certificates of Deposit	RBI
11 a	Fixed Deposits raised by NBFCs, HFCs, FIs	RBI
11 b	Fixed Deposits raised by Banks ⁷	+
12	Fixed Deposits raised by corporates other than NBFCs, Banks, HFCs, FIs	MCA
13	Inter Corporate Deposits/Loans extended by Corporates	MCA
14	Borrowing programme ³	-
15	Issuer Ratings ⁴	-
16	Credit Ratings for Capital Protection Oriented Schemes (by Mutal Funds and AIFs)	SEBI
17	Credit quality ratings (CQRs) for Mutual Fund Schemes and Schemes of AIFs	SEBI
18	Listed Security Receipts ⁶	RBI
19	Unlisted Security Receipts	RBI
20	Independent Credit Evaluation (ICE)	RBI
21	Expected Loss Ratings (For Loan Facilities [Fund/Non-Fund based] from Banks/NBFCs/NHB/FIs) ⁷	+
22	Expected Loss Ratings (Listed / Proposed to be listed Bonds / Debentures / Preference Shares (all securities))	SEBI
23	Expected Loss Ratings (Unlisted / Proposed to be unlisted Bonds/ Debentures / Preference Shares (all securities))	MCA
24	Unlisted PTCs / Securitisation Notes (originated by entities not regulated by RBI) ¹	Investor-side Regulator such as IRDAI, PFRDA ⁵

¹Includes securitisation transactions involving assignee payout, acquirer's payout.

² Includes bank facilities such as liquidity facility, second loss facility that are part of securitisation transactions.
³The rated instrument may involve issuance of different instruments such as debt securities (listed or otherwise), bank loans, commercial paper (listed or otherwise), etc. The regulator of the instrument may accordingly be SEBI, RBI or MCA and can only be determined upon issuance. In Press Release(s) subsequent to issuance(s), Acuite shall separately capture the rated quantum details along with names of respective regulators.
⁴ There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs.
⁵ These ratings were assigned during regulatory regime prior to the introduction of SEBI CRA Circular dated Feb 10, 2026 and accordingly, investor side regulators have been included.
⁶ By virtue of the instrument being listed, SEBI acts as the regulator for listing and related issues.
⁷ To be finalized following a discussion with the regulatory authorities.

B. Other activities:

Sr. No.	Activity Name	Regulator of the activity
1	Monitoring Agency	SEBI
2	Research activities, incidental to rating, such as research for Economy, Industries and Companies ⁸	Not applicable

⁸ permitted by SEBI vide SEBI Master Circular for CRAs.

Disclosure on instruments / activities and names of regulators:

A list of products/activities or ratings of instruments falling under the purview of various financial sector regulators (FSRs) along with the names of respective FSRs has also been duly disclosed by Acuite on its website. A link to the same has been provided below for ready reference:

https://acuite.in/Activities-and-Regulators.html

About Acuité Ratings & Research

Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai.

Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating.

Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.