S&P Upgrades Ratings of Indian Banks and Finance Firms

Global ratings agency S&P Global Ratings has upgraded the long-term issuer credit ratings of 10 leading Indian financial institutions, a day after raising India’s sovereign credit rating.

The list includes seven major banks — State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Union Bank of India, and Indian Bank — along with three top finance companies — Bajaj Finance, Tata Capital, and L&T Finance.

Strong Growth Outlook for Financial Institutions

S&P said, “India’s financial institutions will continue to ride the country’s good economic growth momentum. These entities will benefit from their domestic focus and structural improvements in the system such as in the recovery of bad loans.”

The agency highlighted that banks and finance firms are well-placed to gain from the country’s positive growth cycle and reforms in the financial sector.

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Banks Expected to Maintain Stability

According to S&P, India’s banking system is expected to maintain adequate asset quality, strong profitability, and better capitalization over the next 12–24 months, despite minor stress pockets.

The agency also noted that credit risk in the financial system has reduced, making Indian banks and NBFCs more resilient.

Key Takeaway

S&P’s upgrade of 10 leading Indian financial institutions, including SBI, HDFC Bank, ICICI Bank, and Bajaj Finance, reflects confidence in the country’s economic momentum, banking stability, and reduced credit risk.

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