IDFC FIRST Bank earns first international credit rating
IDFC FIRST Bank has announced that S&P Global Ratings has assigned the bank its inaugural international investment-grade issuer credit ratings of ‘BBB-’ long-term and ‘A-3’ short-term, with a Stable Outlook.
Commenting on the rating, Sudhanshu Jain — Chief Financial Officer and Head, Corporate Centre, said, “We are delighted to receive our first international investment-grade rating from S&P with a Stable Outlook. We view this rating as an important milestone in our progress. The investment-grade rating is expected to enhance the Bank’s standing with global investors and financial institutions, support access to international funding markets, facilitate Standby Letter of Credit (SBLC) lines, strengthen foreign currency funding at the Bank’s GIFT City International Banking Unit, support mobilisation of FCNR(B) deposits, and deepen correspondent banking and cross-border trade finance relationships.”
S&P Global Ratings noted that IDFC First Bank will maintain strong capitalization over the next 18-24 months. “We forecast the bank’s risk-adjusted capital (RAC) ratio will stay at 10.0 per cent-10.5 per cent, compared with 10.9 per cent as of March 2026. The bank’s loan book is likely to grow at 20 per cent per annum over that period, faster than the wider Indian banking industry,” it said.
The rating agency observed that regular capital raisings, improved profitability, and a low dividend payout should support IDFC First Bank’s capitalization. Further, the bank has demonstrated good access to equity markets, raising capital frequently since fiscal 2021.
