IDFC FIRST Bank Secures First International Investment Grade from S&P

IDFC FIRST Bank has received its inaugural international investment-grade rating of 'BBB-' with a 'Stable' outlook from S&P Global Ratings. This milestone enhances the bank's global standing, aiding access to international markets and supporting expansion efforts, including foreign currency funding and trade finance relations.

Mumbai-based IDFC FIRST Bank has announced the acquisition of its first international investment-grade issuer credit rating from S&P Global Ratings. The bank received a 'BBB-' long-term and an 'A-3' short-term rating, both accompanied by a stable outlook, marking a significant milestone for the institution.

Mr. Sudhanshu Jain, Chief Financial Officer, emphasized that this rating is crucial to the bank's progress and enhances its global standing. It is expected to facilitate access to international markets, bolster foreign currency funding, and strengthen its presence in cross-border trade and financial relations. The bank's GIFT City International Banking Unit will particularly benefit from these advancements.

S&P Global Ratings lauded IDFC FIRST Bank for its strong capitalization, projected to maintain a risk-adjusted capital ratio between 10.0%-10.5% over 18-24 months, aided by regular capital raising, improving profitability, and a low dividend payout policy. The agency also anticipates better profitability for the bank due to revenue growth, lower credit costs, and improved operating leverage.

The bank's asset quality is expected to remain stable, supported by technology-driven underwriting and a focus on lower-risk lending segments, as S&P highlighted. The experienced management team and robust digital capabilities were noted as key factors in expanding the bank's scalable retail franchise across India.

Further enhancing its profile, the bank's CASA ratio stood at 50.8% as of June 30, 2026. The investment-grade rating is poised to enhance IDFC FIRST Bank's access to international markets, support trade and SBLC lines, and assist with foreign currency funding and deposit mobilization.