IDFC FIRST Bank Receives Inaugural Investment-Grade Ratings From S&P
KUALA LUMPUR, Aug 17 (Bernama) -- IDFC FIRST Bank, one of India's fast-growing private banks, has received its inaugural international investment-grade issuer credit ratings from S&P Global Ratings, with a ‘BBB-’ long-term rating and ‘A-3’ short-term rating, both with a stable outlook.
In a statement, IDFC FIRST Bank Chief Financial Officer and Head of Corporate Centre, Sudhanshu Jain said the rating marked an important milestone in the bank's progress and is expected to enhance its standing with global investors and financial institutions.
He said it would also support access to international funding markets, Standby Letter of Credit (SBLC) lines, foreign currency funding at the bank's GIFT City International Banking Unit, FCNR(B) deposits, correspondent banking and cross-border trade finance relationships.
S&P expects IDFC FIRST Bank to maintain strong capitalisation over the next 18-24 months, with its Risk-Adjusted Capital (RAC) ratio projected at 10.0-10.5 per cent, supported by regular capital raising, improving profitability and a low dividend payout policy.
The agency also expects further improvement in the bank's profitability, driven by healthy revenue growth, declining credit costs and improving operating leverage. Its cost-to-income ratio is expected to improve to 65 per cent to 70 per cent from 75 per cent in fiscal 2026 over the next two years.
S&P expects the bank's asset quality to remain stable, supported by technology-driven underwriting, portfolio diversification and a growing focus on lower-risk lending segments. The stable outlook reflects expectations that the bank will maintain strong capitalisation, manageable asset quality risks and a granular retail funding profile.
The agency also highlighted IDFC FIRST Bank's experienced management team, strong digital capabilities and scalable retail banking franchise with nationwide reach, as well as its strong funding profile, with a current account/savings account (CASA) ratio of 50.8 per cent as of June 30, 2026.
As of June 30, 2026, IDFC FIRST Bank served 39 million customers through 1,155 branches, with customer deposits growing 16.6 per cent year-on-year, while loans and advances increased 20.6 per cent.
-- BERNAMA