India Ratings and Research (Ind-Ra) has affirmed Bank of Baroda's (BOB) long-term issuer rating at 'AAA' with a stable outlook.

BOB's Long-Term Issuer Rating is driven by Ind-Ra's expectation of continued strong support from the government of India (GoI)-the major shareholder (59.24% shareholding at end-March 2016) and its systemic importance as the third-largest government-owned bank and fifth-largest bank including private banks by asset market share (market share of 5.5% at FYE16).

The bank also has the third-largest branch network in the country. The bank has been the beneficiary of steady capital injection by GoI over FY11-FY16. In FY17, the bank has received Rs 17.86 billion from GoI as a part of Indradhanush framework (the government's initiative to rejuvenate public sector banks (PSBs)).

In its recent report, Ind-Ra continues to highlight that PSBs overall would continue to require a significant amount of capital even on a constrained growth trajectory during FY17-FY19. Also, following the clean-up under asset quality review, NPL aging would keep pressure on credit costs well into FY17.

Shares of the bank gained Rs 0.9, or 0.56%, to trade at  Rs 160.70.  The total volume of shares traded  was  105,124 at the BSE (10.07 a.m., Thursday).