Mumbai, February 6, 2026: State-owned lender Bank of Baroda (BoB) has received approval from the Reserve Bank of India (RBI) to establish a wholly-owned subsidiary for undertaking Standalone Primary Dealer (SPD) business, the bank informed stock exchanges on Thursday.
As per the regulatory disclosure, Bank of Baroda will infuse capital of up to ₹2,000 crore into the proposed subsidiary, subject to conditions specified by the central bank.
The approval follows an earlier intimation made by the bank in January 2026 and marks a strategic move to strengthen its presence in the government securities and debt market operations.
What the New Subsidiary Will Do
The proposed entity will function as a Standalone Primary Dealer, enabling Bank of Baroda to:
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Participate more actively in government securities auctions
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Enhance its role in bond market liquidity
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Strengthen treasury and fixed-income market operations
Primary Dealers play a critical role in India’s financial system by supporting government borrowing programmes and ensuring smooth functioning of the debt market.
Strategic Significance
The move is expected to:
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Diversify Bank of Baroda’s revenue streams
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Improve efficiency in treasury operations
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Align the bank with evolving market structure and regulatory expectations
The bank clarified that the subsidiary will be established in compliance with RBI guidelines and applicable regulatory conditions.
Bank of Baroda’s disclosure has been made under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the information has been shared with both BSE and NSE.