IDBI Bank – Ratings Upgraded

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has raised the Bank Standalone Rating (BSR) and Core Financial Strength (CFS) rating of IDBI Bank to ‘bb+’ from ‘bb’ and revised the Outlook for the Long-Term Foreign Currency Rating (LT FCR) to Positive from Stable. At the same time, CI Ratings has affirmed the Bank’s LT FCR and Short-Term Foreign Currency Rating (ST FCR) of ‘BBB-’ and A3, respectively, and the Extraordinary Support Level (ESL) of High. The Outlook for the BSR remains Stable.

The upward revision of the BSR and CFS rating is supported by sustainable improvements in key financial fundamentals over the past few years. The Bank has maintained strong capital ratios since FY23 (which ended in March 2024). These ratios are also among the best in the banking sector. The NPL ratio is moderately low and continues to improve on the back of strong recoveries and low NPL accretions. In addition, the bulk of NPLs are fully covered by…