RBI, Rating Firms assess Iran War risks on Indian companies

The Reserve Bank of India has engaged in talks with domestic credit‑rating firms to assess possible borrower stress stemming from the US‑Iran conflict, according to sources familiar with the discussions.

The talks seek to gauge on‑the‑ground conditions so policymakers aren’t surprised should the dispute intensify, the sources said, requesting anonymity because the meetings are confidential.

The central bank additionally asked for input on whether short‑term regulatory easing might be required to stave off a decline in borrowers’ credit quality, the sources added.

With crude oil exceeding $100 a barrel, costs are rising throughout India’s economy, squeezing inflation and household budgets. Although bank non‑performing loans sit at a multi‑year low, the discussions indicate regulators are vigilant for any emerging financial strain.

Officials aim to avert widespread credit strain that could impede growth, the sources noted, emphasizing that the talks do not imply an imminent crisis. Rating agencies have supplied the RBI with early evaluations, detailing several credit‑risk scenarios should the conflict continue, they added.

An RBI spokesperson did not respond to a request for comment. The central bank plans to publish its semi‑annual Financial Stability Report next month.

Rating agencies told the sources that any repercussions would likely stem from elevated input costs, supply‑chain interruptions and softened demand. To mitigate the effect, the government has lifted fuel prices, restricted gold imports and strengthened currency‑market regulations.

In an uncommon public appeal this month, Prime Minister Narendra Modi called on citizens to forego non‑essential travel in order to preserve foreign‑exchange reserves.

Additional coverage can be found at bloomberg.com

Published on May 26, 2026