ICRA assignes rating to BoB's Rs 1,000cr Lower Tier II Bonds

New Delhi, Sep 12 (UNI) Credit rating agency ICRA today assigned an LAAA rating to the Rs 1,000 crore Lower Tier II Bonds of Bank of Baroda (BoB).

The highest credit quality rating takes into account BoB's nation wide franchise imparting a stable low cost deposit base, its competitive capitalisation and improving core operating profitability.

The rating also factors in the risk associated in the banks investment portfolio on account of further rise in interest rates, BoB's comfortable operating profitability and capital position mitigates the impact on its financial profile.

BoB's position in the Indian financial system as the fifth largest bank in the country with an asset base of Rs 1,13,400 crore as of March 31, 2006 and the Government of India's majority ownership of the bank also support the ratings.

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