S&P Global Ratings assigns IDFC First Bank investment grade rating
2 min readS&P Global Ratings has given IDFC First Bank a long‑term issuer credit rating of ‘BBB‑’ and a short‑term rating of ‘A‑3’, with a stable outlook. The bank notes that this is its first international investment‑grade rating.
The rating will improve the bank’s standing with global investors and financial institutions, make it easier to tap international funding markets, support Standby Letter of Credit (SBLC) lines, strengthen foreign‑currency funding at the GIFT City International Banking Unit, help mobilise FCNR(B) deposits, and deepen correspondent banking and cross‑border trade‑finance relationships, said Sudhanshu Jain – Chief Financial Officer & Head Corporate Centre.
Commenting on the rating, Mr. Sudhanshu Jain – Chief Financial Officer & Head Corporate Centre, said, “We are delighted to receive our first international investment‑grade rating from S&P with a stable outlook.”
S&P Global Ratings observed that IDFC First Bank is expected to maintain strong capitalisation over the next 18‑24 months. “We forecast the bank’s risk‑adjusted capital (RAC) ratio will stay between 10.0 % and 10.5 %, compared with 10.9 % as of March 2026. The loan book is likely to grow at about 20 % per year during that period, outpacing the wider Indian banking industry,” it said.
The agency added that regular capital raisings, improved profitability, and a low dividend payout should bolster IDFC First Bank’s capital position. It also noted the bank’s solid access to equity markets, having raised capital frequently since fiscal 2021.
“We expect IDFC First Bank to raise up to ₹75 billion of additional capital in fiscal 2027 (ending March 31, 2027) and to undertake further equity infusions as needed to support its growth plans. Management aims to keep an S&P Global Ratings RAC ratio above 10 % on a sustained basis,” the agency said.
Published on August 15, 2026
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