Confidence in Axis Bank: Fitch Reaffirms 'BB+' Rating, Eyes Bright Future

Fitch Ratings has reaffirmed Axis Bank’s Long-Term Issuer Default Rating (IDR) at 'BB+' with a stable outlook, reflecting confidence in the bank’s resilience and India’s supportive economic environment. The agency also maintained the bank’s Government Support Rating (GSR) at 'bb+' and Viability Rating (VR) at 'bb'. Fitch highlighted Axis Bank’s strong domestic franchise, above-sector-average growth appetite, and improving asset quality as key strengths. The bank’s impaired loan ratio fell to 1.6% in FY24, and credit costs are expected to remain manageable. Fitch’s outlook revision on Axis Bank’s earnings and profitability score to stable from positive signals limited further upside, though profitability remains robust compared to pre-FY23 levels. The affirmation is underpinned by expectations of moderate government support, given Axis Bank’s systemic importance, and a resilient Indian economy projected to grow at 7% in 2024 and 6.5% in 2025. Axis Bank’s stable funding, strong capital position, and prudent risk management continue to support its credit profile.

 

Source: Economic Times, Axis Bank (NSE, BSE)