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S&P Upgrades Ratings for Top Indian Banks and Institutions
16 Aug
Summary
- S&P Global Ratings upgraded 7 Indian banks and 3 financial institutions
- Upgrade follows increase in India's sovereign credit rating
- Ratings agency cites India's strong economic growth and improvements in the financial system
On August 15, 2025, global credit rating agency S&P Global Ratings announced that it has upgraded the long-term issuer credit ratings for seven Indian banks and three financial institutions. This comes just a day after S&P increased India's sovereign credit rating, signaling its confidence in the country's economic trajectory.
The seven Indian banks whose ratings were upgraded are State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, Union Bank of India, and Indian Bank. Additionally, Bajaj Finance, Tata Capital, and L&T Finance also received credit rating upgrades.
S&P Global cited India's strong economic growth momentum and structural improvements in the financial system, such as the recovery of bad loans, as key factors behind the ratings upgrade. The agency expects India's banks to maintain adequate asset quality, good profitability, and enhanced capitalization over the next 12-24 months, despite some pockets of stress.
Furthermore, S&P highlighted that the Insolvency and Bankruptcy Code introduced in 2016 has improved the payment culture and rule of law in India, tilting the balance in favor of creditors and promoting a credit-friendly environment.
