S&P Global Upgrades Credit Ratings of SBI, HDFC Bank, Tata Capital, under ten financial institutions

Global Credit Rating Giant, S&P Global Ratings, on Friday, August 15, 2025, upgraded the long -term credit ratings for seven Indian banks and three financial institutions, a day after the Indian sovereign credit rating of India was increased, the PTI news agency reported. State Bank of India, ICICI Bank, HDFC Bank, Axis Bank Ltd, Kotak Mahindra Bank, Union Bank of India and Indian Bank are the seven Indian banks whose credit ratings have been upgraded by S&P Global. According to the agency report, Bajaj Finance, Tata Capital and L&T Finance were the three financing companies who also received a credit rating upgrade on Friday. “The financial institutions of India will continue to drive the country’s good economic growth. These entities will benefit from their domestic focus and structural improvements in the system, as in the recovery of bad loans,” says S&P Global, quoted by the news agency. S&P Global’s expectations for Banks S&P Global expect Indian banks to maintain adequate asset quality, good profitability and improved capitalization over the next one to two years. “We expect the banks of India to maintain adequate asset quality, good profitability and improved capitalization over the next 12-24 months. This is despite a few bags of stress,” the rating agency said, emphasizing that the credit risk in the system has reduced. India’s credit rating upgrade according to the agency report, S&P Global on Thursday, August 14, 2025, upgraded India’s credit rating to over 18 years, because it expects India’s sound economic fundamentals to support the growth momentum over the next two to three years. The company also said that monetary policy institutions became increasingly conducive to inflationary expectations. Our sovereign rating on India achieves the ratings at many Indian financial institutions. This is due to the direct and indirect influence of the sovereign on financial institutions operating in the country, S&P said according to the news release. It is also said that the insolvency and bankruptcy code (IBC) improved the payment culture and supremacy of the law in India. The code, launched in 2016, tilted the balance in favor of the creditors. It also promoted a credit culture that encourages the restructuring of running pollution entities. On Thursday, S&P Global Ratings also has the credit ratings at Oil and Natural Gas Corp. Ltd. (ONGC), Power Grid Corp. of India Ltd., NTPC Ltd., and Tata Power Co. Ltd. to ‘bbb’ of ‘bbb—’ increased. The prospects are stable. S&P Global Ratings also has its long-term credit ratings for issuers on the Export-Import Bank of India (India Exim) and Indian Railway Finance Corp. (IRFC) to ‘BBB’ of ‘BBB-‘ increased.