Bank of Baroda has provided clarification regarding a recent news item concerning a fund transfer request from the Madhya Pradesh Government. The bank outlined the sequence of events leading to the resolution of the issue within 24 hours.
The incident began on 26 March 2026, when one of the bank’s branches received an email requesting the transfer of funds from a savings account maintained by the MP Government to another state government account. However, there was a discrepancy between the requested transfer amount and the available balance in the account. Later that day, a revised amount was communicated via another email, although it lacked an official letter.
On 27 March 2026, the branch received an email with an attached official letter from the State Government Department, requesting the transfer of funds on the same day. However, the branch was closed for the Ram Navami holiday. Despite the holiday, the bank arranged for the necessary approvals and transferred the funds in four tranches to the designated beneficiary on the same day.
Subsequently, on 27 March 2026, the Commissioner of the Department of Institutional Finance (DIF), Bhopal, issued a letter advising the debarment of Bank of Baroda from conducting government business. In response, the bank’s zonal authorities submitted a written representation to the state government on 28 March 2026, outlining the facts of the case and requesting the revocation of the order.
Later on 28 March 2026, the Commissioner of DIF, Bhopal, issued another letter cancelling the previous debarment order with immediate effect. As the initial order was revoked within 24 hours, Bank of Baroda stated that there was no material impact on the bank, and the information was not disclosed to stock exchanges.
The bank has requested that the clarification be noted and uploaded on the stock exchange website in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).