...State Support-Driven IDR: Bank of Baroda's (BOB) Issuer Default Ratings (IDRs) and Government Support Rating (GSR) are at the same level as India's sovereign rating (BBB- /Stable), reflecting Fitch Ratings' view of a high probability of extraordinary state support for the bank, if required. The ratings factor in BOB's position as India's second-largest state bank with over 6% market share in sector assets and deposits, 64% state ownership and its quasi- policy role via social lending. The Stable Outlook on the IDR mirrors that on the sovereign IDR. Supportive Operating Environment (OE): The OE score of 'bb+', which is higher than Fitch's implied score in the 'b' category, takes into account our view of India's robust medium-term growth potential. Fitch expects GDP to grow by 7% in 2024 and 6.5% in 2025. Healthy business sentiment, steady financial markets and the government's capital spending have buffered global economic headwinds and inflation. These factors are conducive for banks to...
