IDFC FIRST Bank Earns First International Investment Grade Rating From S&P

Mumbai, August 14, 2026; IDFC FIRST Bank has achieved a major milestone in its international expansion after S&P Global Ratings assigned the lender its first international investment-grade issuer credit ratings.

The global ratings agency gave the bank a ‘BBB-’ rating for long-term credit and ‘A-3’ for short-term credit, accompanied by a Stable Outlook.

The rating is expected to strengthen IDFC FIRST Bank’s position among international investors and financial institutions. It could also help the lender widen its access to overseas funding, expand standby letter of credit facilities and increase foreign currency funding through its GIFT City International Banking Unit.

The bank said the rating could further support mobilisation of FCNR(B) deposits and help develop correspondent banking as well as cross-border trade finance relationships.

S&P expects the bank to retain strong capitalisation over the next 18 to 24 months. Its Risk-Adjusted Capital ratio is projected to remain between 10 per cent and 10.5 per cent, aided by capital raising, improving profitability and a relatively low dividend payout.

The ratings agency also expects the lender’s financial performance to improve as revenue growth remains healthy, credit costs decline and operating efficiency strengthens. Its cost-to-income ratio is projected to improve to around 65-70 per cent over the next two years, compared with 75 per cent in FY2026.

According to S&P, the bank’s asset quality is expected to remain broadly stable, supported by technology-led credit assessment, diversification of its loan portfolio and greater exposure to relatively lower-risk lending segments.

The agency also highlighted IDFC FIRST Bank’s management experience and digital banking capabilities, which have helped it build a scalable retail banking business with a nationwide presence.

The bank’s funding profile was another factor noted by S&P, with its CASA ratio standing at 50.8 per cent as of June 30, 2026.

The Stable Outlook indicates that S&P expects the bank to maintain strong capital levels, controlled asset-quality risks and a diversified retail funding base over the medium term.

The international rating marks an important step for IDFC FIRST Bank as it seeks to deepen its presence in global financial markets and broaden its international banking and trade-finance operations.