India Ratings has affirmed IDBI Bank’s rating for its Fixed Deposits at ‘IND AA/Stable’ and for its Certificate of Deposits at ‘IND A1+’. The affirmation reflects the bank’s comfortable capital position, stable deposit franchise, improving asset quality, and improved profitability profile. The detailed report outlining these ratings is attached herewith.
IDBI Bank Ratings Affirmed by India Ratings
India Ratings has announced the affirmation of its ratings for IDBI Bank’s debt instruments. The bank’s Fixed Deposits have been assigned a rating of ‘IND AA/Stable’, indicating a stable outlook. Additionally, the Certificate of Deposits have been affirmed with a rating of ‘IND A1+’, signifying a strong short-term credit quality.
Key Rating Drivers Highlighted
The rating agency cited several key factors contributing to this affirmation. These include IDBI Bank’s comfortable capital position, a stable deposit franchise characterized by a strong current account and savings account (CASA) profile, and an improving trend in asset quality. Furthermore, the bank’s improved profitability profile, supported by healthy margins and controlled operating expenses, played a significant role in maintaining the current ratings.
India Ratings noted that the bank’s consolidated subsidiaries are fully consolidated in their ratings approach. While the agency has not factored in capital support from the government of India (GoI) and Life Insurance Corporation of India (LIC) due to their planned strategic divestment, the bank’s internal capital generation is expected to support medium-term growth plans. The agency will continue to monitor the evolving situation regarding the divestment process.
The detailed report indicates that the affirmation is effective as of September 19, 2026. The bank’s retail loan portfolio continues to be a focus, accounting for a significant portion of its advances. Efforts to manage operating expenses and enhance efficiency are also contributing positively to the bank’s financial standing.
Source: BSE
