Long-Term Foreign Currency Rating Outlooks of Banks in India Revised to Stable

30 October 2026

Capital Intelligence Ratings (CI Ratings or CI) today announced that it has revised the Long-Term Foreign Currency Rating (LT FCR) Outlooks of HDFC Bank, ICICI Bank, IDBI Bank, Axis Bank, Bank of Baroda and State Bank of India to Stable, from Positive. The revision in the LT FCR Outlook for these six banks stems from a change in CI’s internal assessment of sovereign credit risk, driven by underlying fiscal vulnerabilities, specifically a higher-than-projected budget deficit, a narrow revenue base, and a heavy government debt burden. Additionally, it reflects the pressures from elevated international energy prices and geopolitical risks on the Indian economy, despite its ongoing economic resilience.

The Bank Standalone Rating (BSR) Outlooks of HDFC Bank and ICICI Bank were also revised to Stable, from Positive, in line with the change in the Outlook for the LT FCR. The LT FCR and BSR of both banks are constrained by sovereign risk considerations, as the banks…