The Reserve Bank of India (RBI) has given the green light for state-owned lender Bank of Baroda (BoB) to form a wholly-owned subsidiary and engage in Standalone Primary Dealer (SPD) operations, the bank said Thursday to stock exchanges.
According to the information provided by the regulatory body, the proposed subsidiary will get funding of up to ₹2,000 crore from Bank of Baroda, contingent upon the requirements set by the central bank.
This permission is a strategic step toward the bank’s goal of increasing its footprint in the government securities and debt market activities, which it hinted at in January 2026. Supporting government borrowing programmes and guaranteeing the efficient running of the debt market, Primary Dealers play a crucial role in India’s financial system.
