IDFC First Bank receives 1st S&P Global ratings BBB- A-3
IDFC First Bank just got its first international credit rating from S&P Global Ratings, earning a "BBB-" for long-term and "A-3" for short-term, both with a stable outlook.
This basically means S&P thinks the bank will stay financially solid over the next couple of years, keeping its capital levels healthy.
S&P projects 20% annual loan growth
S&P expects IDFC First Bank's loan book to grow about 20% annually and predicts steady asset quality, with low non-performing loans (1.7% to 1.8%) and manageable credit costs (1.5% to 1.6%).
The bank's retail deposits are strong, making up 80% of total deposits, and its loan-to-deposit ratio improved to 95%, showing deposit growth is outpacing loans.
Net interest margins are set to rise slightly in FY27, while cost-to-income ratios should drop by FY28, making operations more efficient.