Bank of Baroda has officially entered the pension fund business after receiving the Certificate of Appointment as Sponsor from the Pension Fund Regulatory and Development Authority (PFRDA) on October 1, 2026 during the NPS Divas 2026 event. The certificate was presented by Department of Financial Services Secretary Sanjay Lohiya to BoB's Managing Director and CEO Debadatta Chand in the presence of PFRDA Chairperson S Ramann and NPS Trust Chairperson Dinesh Kumar Khara. This approval enables the public sector lender to sponsor a pension fund under the provisions of the PFRDA Act, 2013, marking a significant milestone in the bank's expansion into retirement solutions. The move comes as PFRDA Chairperson S Ramann told ANI that the regulator ultimately wants every worker in India's workforce to have an NPS account by 2047, with immediate targets of 2-4 crore additional subscribers over the next two to three years.
Bank of Baroda has incorporated a new subsidiary BoB Pension Fund Management Company Ltd with an authorised share capital of ₹100 crore. The public sector bank serves as the sponsor of the new company with a shareholding of 80.10 per cent, while the balance stake is held by Baroda BNP AMC. The subsidiary aims to operate as a pension fund management company regulated by the PFRDA. With this official approval, Bank of Baroda becomes the second public sector bank to enter the pension fund business, following State Bank of India which was the first PSB to enter this sector in April 2008. As reported by The Hindu BusinessLine, SBI Pension Funds Pvt Ltd currently manages assets under management aggregating ₹6.14 lakh crore as of August 31, 2026. The framework allows pension funds to manage assets under the National Pension System (NPS) across both government and private-sector schemes, with the regulator taking steps to broaden the pension ecosystem and increase participation in the NPS by expanding the pool of pension fund managers and sponsors.
PFRDA's latest data shows 2.33 crore NPS subscribers and assets of ₹17.49 lakh crore as of September 27, 2026. The regulator is focusing particularly on the non-government workforce, where subscriber growth is currently around 22-25%. As reported by ANI, PFRDA Chairperson S Ramann explained that the government sector has been well-established for about 18 years, making the focus entirely on growing subscribers in the non-government sector. The regulator is relying increasingly on digital channels to widen access, with NPS Tatkal and StAR NPS intended to simplify account opening, while encouraging more pension agents and using digitised rural institutions to reach people outside major cities. PFRDA has also launched NPS Swasthya, a product combining a medical savings component with top-up health cover, as it seeks to broaden the appeal of retirement planning.
In parallel with the pension fund launch, Bank of Baroda has integrated Tatkal NPS with the BHIM App under the second phase of the facility's rollout. According to the bank's statement, this integration enables users to open NPS accounts through the BHIM platform in a simplified and paperless manner. The move gives the bank another route to reach potential subscribers beyond its physical branch network. As reported by ANI, PFRDA Chairperson S Ramann emphasized that the regulator has got very good digital-based systems which lead to ease of entry into the NPS system, with NPS Tatkal and StAR NPS being key initiatives. The regulator is also encouraging more pension agents and using digitised rural institutions to reach people outside major cities, stating that once you create a digital platform, the risks of operation are next to zero.
Debadatta Chand, Managing Director & CEO of Bank of Baroda, described this development as marking an important milestone for the bank. As reported by The Hindu BusinessLine, Chand stated that today marks an important milestone as BoB becomes the second Public Sector Bank to enter the pension fund business. He emphasized that these milestones reinforce the bank's commitment in expanding access to retirement solutions and leveraging digital innovation to make pension products more accessible and convenient for customers across the country. The significance of this expansion was underscored by the high-profile presentation ceremony during the NPS Divas 2026 event. PFRDA Chairperson S Ramann told ANI that it's about telling people that they must understand their risk appetite before making an investment, focusing on education, awareness, and financial literacy to help subscribers understand investment risks and make informed decisions.
