Bank of Baroda has entered the pension fund business, becoming the second public sector bank after State Bank of India (SBI) to enter the segment. According to reports from ANI, the lender received its Certificate of Appointment as Sponsor of a Pension Fund under Section 27 of the PFRDA Act, 2013 on October 1, 2026 during the NPS Divas 2026 event. The certificate was presented by Sanjay Lohiya, Secretary, Department of Financial Services, to Bank of Baroda Managing Director and CEO Debadatta Chand.
As part of its pension fund entry, Bank of Baroda has established BoB Pension Fund Management Company Limited with authorised capital of ₹100 crore. The new entity has a shareholding structure of 80.10% Bank of Baroda and 19.90% Baroda BNP AMC. This structured approach aligns with PFRDA's strategy to expand pension fund management capabilities across public sector banks.
With Bank of Baroda's appointment, it joins SBI in the pension fund segment. As reported by ANI, PFRDA had earlier selected Bank of Baroda, Motilal Oswal AMC and Bajaj as pension fund sponsors in July 2026 under its new guidelines. PFRDA Chairperson S Ramann announced that the regulator is targeting two to four crore additional NPS subscribers over the next two to three years. The regulator's latest data showed 2.33 crore NPS subscribers with assets of ₹17.49 lakh crore as of September 27, 2026.
Bank of Baroda has onboarded Tatkal NPS on the BHIM app, allowing customers to open NPS accounts digitally. According to reports from CNBCTV18, this facility is part of the second phase of the digital onboarding initiative and provides the bank with another channel to reach potential NPS subscribers beyond its branch network. PFRDA is also promoting digital platforms such as NPS Tatkal and StAR NPS, while encouraging more pension agents and using digitised rural institutions to expand access.
Bank of Baroda's entry comes as SBI continues to dominate the pension fund segment, with its Assets Under Management (AUM) standing at ₹6.14 lakh crore as of August 31, 2026. The entry of additional banks like Bank of Baroda is expected to increase competition and expand the reach of pension fund services across India's financial sector. According to the Ministry of Finance (MoF), India's real Gross Domestic Product (GDP) growth was projected at 7.3% in Q2 FY27 (July–September 2026), supported by resilient domestic demand and investment. India recorded 7.8% GDP growth in Q1 FY27 (April–June 2026), indicating strong economic momentum entering Q2.
