Bank of Baroda becomes only PSU bank after SBI to enter pension fund business: What it means
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 as the Pension Fund Regulatory and Development Authority (PFRDA) seeks to expand the National Pension System (NPS) beyond government employees, ANI reported.
The lender received its Certificate of Appointment as Sponsor of a Pension Fund under Section 27 of the PFRDA Act, 2013, on October 1, during the NPS Divas 2026 event.
Bank of Baroda joins SBI in pension fund business
With its appointment, Bank of Baroda becomes the second public sector lender to enter the pension fund segment. PFRDA had earlier selected Bank of Baroda, Motilal Oswal AMC and Bajaj as pension fund sponsors in July 2026 under its new guidelines.
The certificate was presented by Sanjay Lohiya, Secretary, Department of Financial Services, to Bank of Baroda Managing Director and CEO Debadatta Chand. PFRDA Chairperson S Ramann and NPS Trust Chairperson Dinesh Kumar Khara were also present.
The move comes as PFRDA seeks to widen participation in NPS and bring more workers into the retirement savings system.
PFRDA targets up to 4 crore new NPS subscribers
PFRDA is targeting two to four crore additional NPS subscribers over the next two to three years, according to Ramann.
The regulator’s latest data showed 2.33 crore NPS subscribers with assets of ₹17.49 lakh crore as of September 27, 2026.
Ramann said the regulator’s long-term target is to have every worker in India’s workforce covered by an NPS account by 2047. He said the focus would particularly be on the non-government workforce, where subscriber growth is currently around 22-25%.
“The government sector has actually been there for about 18 years now and it’s pretty well looked after. So our focus is entirely on growing the subscribers in the non-government sector,” Ramann said, according to ANI.
Bank of Baroda takes NPS to BHIM
Bank of Baroda has, meanwhile, onboarded Tatkal NPS on the BHIM app, allowing customers to open NPS accounts digitally, CNBCTV18 reported.
The facility is part of the second phase of the digital onboarding initiative and gives the bank 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.
Why the pension fund business matters
PFRDA’s expansion push comes as it seeks to increase participation in NPS, particularly among private-sector and other non-government workers.
The regulator is also focusing on financial education and awareness, with Ramann stressing that investors need to understand their risk appetite before making investment decisions.
PFRDA has additionally launched NPS Swasthya, which combines a medical savings component with top-up health cover, as it looks to broaden the appeal of pension and retirement planning.
