After upgrading the global credit rating of India from “BBB-” to “BBB,”
Yes, this took a while, but that’s the first raise in the last eighteen years. Since 2007, the Indian economy was rated “BBB-”. Additionally, the short-term rating was raised to “A-2.”
Now S&P Global has also upgraded the ranking of another 10 financial institutions.
Banks Upgraded By S&P Global:
- State Bank of India (SBI)
- ICICI Bank
- HDFC Bank
- Axis Bank Ltd.
- Kotak Mahindra Bank
- Union Bank of India
- Indian Bank
Finance Companies Upgraded By S&P Global:
- Bajaj Finance
- Tata Capital
- L&T Finance
These upgrades follow the sovereign credit rating upgrade of India and reflect S&P’s confidence in the strength and resilience of India’s financial system.
S&P S&P Global Ratings today upgraded 10 Indian financial institutions . This follows a similar action on the sovereign credit rating on India (BBB/Stable/A-2). We have also raised the issue and program ratings on these entities by one notch.
In all 16 Indian companies have been…— Ajay Bagga (@Ajay_Bagga) August 14, 2025
S&P Global Upgraded The Ranking For 10 Indian Financial Institutions
S&P Global Ratings has upgraded as many as 10 Indian financial institutions, following a similar action on the sovereign credit rating of India.
They raised the long-term issuer credit ratings on seven Indian banks and three finance companies.
Following is a table with the list of companies along with their rating upgradation:
The global rating agency expects India’s sound economic fundamentals to underpin growth momentum over the next two to three years.
In addition, they believe monetary policy settings have become increasingly conducive to managing inflationary expectations.
Big Boost for India!
S&P upgrades India’s rating to BBB (first since 2007, 35 yrs milestone).
➡️ 7 Banks & 3 NBFCs upgraded – HDFC Bank, ICICI Bank, SBI, Axis, Kotak, Union Bank, Bajaj Finance, L&T Finance.With GST reforms + no new US tariffs – markets look 🔥
Stay invested in…— AG Analyst ( SEBI Registered Research Analyst) (@researchanlyst) August 16, 2025
S&P Earlier This Week
It has earlier this week upgraded India’s sovereign ratings to ‘BBB/Stable/A-2’ from ‘BBB-/Positive/A-3’. India has received its first sovereign credit rating upgrade in 18 years.
“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,” S&P Global Ratings said in a statement on August 15.
They expect India’s banks to maintain adequate asset quality, good profitability, and enhanced capitalisation over the next 12–24 months, despite some pockets of stress.
It argued that the Insolvency and Bankruptcy Code (IBC) has improved the payment culture and rule of law in India.
The code, introduced in 2016, has tilted the balance in favour of the creditors.
“It has also promoted a credit culture that encourages restructuring of going-concern entities. The IBC has reduced the average resolution time for bad loans to less than two years now, according to official data, from six to eight years earlier. Recovery values have also improved to more than 30 per cent, from 15–20 per cent under the previous bankruptcy regime,” their report read.
It udderlines that credit risk in the system has reduced.
India’s real GDP growth averaged 8.8 per cent between fiscal years 2022 and 2024, the highest in the Asia-Pacific region and S&P expects this strength to continue, projecting average growth of 6.8 per cent annually over the next three years.
(From ANI)
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