IDFC FIRST Bank Secures Its First International Rating With Investment Grade From S&P Global Ratings

MUMBAI, India--(BUSINESS WIRE)--IDFC FIRST Bank is pleased to announce that S&P Global Ratings has assigned the Bank its inaugural international investment-grade issuer credit ratings of ‘BBB-’ long-term and ‘A-3’ short-term, with a Stable Outlook.

Commenting on the rating, Mr. Sudhanshu Jain - Chief Financial Officer & Head Corporate Centre, said, "We are delighted to receive our first international investment grade Rating from S&P with a Stable Outlook.

We view this rating as an important milestone in our progress. The investment-grade rating is expected to enhance the Bank's standing with global investors and financial institutions, support access to international funding markets, facilitate Standby Letter of Credit (SBLC) lines, strengthen foreign currency funding at the Bank's GIFT City International Banking Unit, support mobilisation of FCNR(B) deposits, and deepen correspondent banking and cross-border trade finance relationships.”

Key excerpts from S&P Global Ratings' rating rationale:

• Expects IDFC FIRST Bank to maintain strong capitalization over the next 18-24 months, with its Risk-Adjusted Capital (RAC) ratio projected at 10.0%-10.5%, supported by regular capital raising, improving profitability and a low dividend payout policy.
• The agency also noted the Bank's demonstrated ability to access equity markets and raise capital to support growth.
• S&P Global Ratings expects further improvement in the Bank's profitability, supported by healthy revenue growth, declining credit costs and improving operating leverage. The agency expects the Bank's cost-to-income ratio to improve to 65%-70% from 75% in FY2026 over the next two years.
• S&P expects the Bank's asset quality to remain stable, supported by technology-driven underwriting, portfolio diversification and a growing focus on lower-risk lending segments. The Stable Outlook reflects the agency's expectation that the Bank will maintain strong capitalization, manageable asset quality risks and a granular retail funding profile over the next two years.
• S&P noted the Bank's experienced management team and strong digital capabilities, which have supported the expansion of a scalable retail banking franchise with nationwide reach.
• S&P further highlighted the Bank's strong funding profile, with a CASA ratio of 50.8% as of June 30, 2026.

The investment-grade rating is expected to strengthen the Bank's access to international markets and funding sources, support trade and SBLC lines, foreign currency funding, FCNR(B) deposit mobilisation, correspondent banking relationships and cross-border trade finance activities.

About the Bank

1. Vision: To build a world-class Bank in India, founded with principles of Ethical, Digital, and Social Good Banking.
2. Scale: IDFC FIRST Bank is one of India’s fast-growing private banks, building its UI, UX, and tech stack like a fintech. As of June 30, 2026, the Bank serves 39 million customers, with a customer business at Rs. 6,04,776 crore ($65.9b) comprising customer deposits of Rs. 2,99,405 crore ($32.6b) and loans & advances of Rs. 3,05,370 crore ($33.3b). Customer deposits grew 16.6% YOY and loans 20.6% YOY. We reach over 60,000 cities, towns, and villages, operating through 1,155 branches.
3. Scope: We are a universal Bank offering a complete range of services, including Retail, MSME, Rural, Startups, Corporate Banking, Cash Management, Credit Cards, Wealth Management, Deposits, Government Banking, Working Capital, Trade Finance, and Treasury solutions.
4. Ethical Banking: We are committed to doing right even when customers are not watching. We have simplified descriptions, calculations, and legal jargon to avoid confusing customers.
5. Digital Banking: The Bank's modern technology stack delivers high-quality services across all channels like mobile, branch, internet banking, call centers and relationship managers. Built on cloud-native, API-led, microservices architecture, supported with data, analytics, AI, and fine aesthetics, we strive to deliver fintech-grade experiences on banking platform.
6. Social Good: We work for society. We have impacted over 40 million lives including 3.6 million women entrepreneurs. We have financed over 7.5 million lifestyle improvement loans (for laptops, washing machines, refrigerators etc. that enhance the quality of life of the middle class), 2.5 lakh electric 2W and 3W vehicles, 2.7 lakh water, sanitation, and hygiene loans, 2 million livelihood (cattle) loans, and 300,000+ SMEs. On deposits, we provide access to premium investment research, which is usually reserved for the wealthy, even to those holding balances as low as Rs. 5,000. Our ESG scores are high and improving.
7. Customer Friendly Banking: We make banking easy by having a customer first approach. We have waived fees on 36 essential savings account services which are commonly charged in the market, the first and only bank in India to do so. We create “pull” products that customers actively seek out.
8. Governance: We adhere to regulatory guidelines in letter and spirit and actively work with regulators to make things better. We take pride in maintaining highest levels of corporate governance.
9. Shareholders: We are building a well-diversified universal banking portfolio designed to deliver consistent ROE of 16%+.
10. Employees: IDFC FIRST Bank is designed to be a happy place to work, with cutting-edge roles, meaningful growth opportunities, and a culture of meritocracy. Compensation is healthy, efforts are recognized, and employees experience the pride and excitement of creating a world-class Bank in India.