Bank of Baroda Enters the Pension Fund Management Sector

Bank of Baroda Enters Pension Fund Business

Bank of Baroda Enters the Pension Fund Management Sector: Bank of Baroda (BoB) has become the second public sector bank in India to enter the pension fund business after receiving approval from the Pension Fund Regulatory and Development Authority (PFRDA).

The approval came through a Certificate of Appointment as Sponsor of a Pension Fund under Section 27 of the PFRDA Act, 2013. The certificate was presented to Debadatta Chand, Managing Director and CEO of Bank of Baroda, by Sanjay Lohiya, Secretary, Department of Financial Services, during NPS Divas 2026.

BoB Pension Fund Management Company

Bank of Baroda has established BoB Pension Fund Management Company Limited as a pension fund management entity regulated by PFRDA.

The company has an authorised capital of ₹100 crore. Bank of Baroda holds 80.10%, while Baroda BNP Asset Management Company holds the remaining 19.90%.

The company will operate in the pension and long-term savings sector, supporting the expansion of organised retirement savings.

Static GK fact: PFRDA regulates and develops the pension sector in India and oversees the National Pension System (NPS).

SBI Was the First Public Sector Bank

State Bank of India (SBI) was the first public sector bank to enter the pension fund management business.

It entered the segment in April 2008 through SBI Pension Funds Private Limited. As of 31 August 2026, the company had Assets Under Management (AUM) of ₹6.14 lakh crore.

BoB’s entry therefore marks the expansion of public sector banking participation in India’s pension fund industry.

Tatkal NPS Integrated With BHIM

Bank of Baroda has also integrated Tatkal NPS with the BHIM App to simplify NPS account opening.

The digital facility aims to make pension onboarding more paperless, faster and accessible, allowing users to complete the process through a simplified digital mechanism.

Static GK Tip: NPS is a defined-contribution pension system that enables subscribers to accumulate retirement savings during their working years.

PFRDA Targets Wider NPS Coverage

PFRDA has set an ambitious target of adding approximately 2–4 crore NPS subscribers over the next 2–3 years.

The expansion strategy focuses particularly on non-government employees, private-sector workers and the informal and unorganised workforce.

The broader objective is to strengthen pension coverage and encourage long-term retirement savings across India, supporting the goal of wider pension inclusion by 2047.

Significance for India’s Pension Sector

BoB’s entry adds another major public sector institution to India’s pension fund ecosystem. Increased participation by banks can help extend pension products to a wider customer base by using existing banking networks and digital platforms.

The combination of PFRDA regulation, NPS expansion and digital onboarding reflects India’s broader effort to increase formal retirement savings and improve pension coverage among different sections of the workforce.

Static Usthadian Current Affairs Table

Bank of Baroda Enters the Pension Fund Management Sector: