Fitch Ratings Reinforces Stability of Axis and ICICI Banks Amid Growth Projections

Fitch Ratings affirmed the ratings of Axis Bank and ICICI Bank with a stable outlook. Axis Bank's viability rating remains at 'BB', while ICICI Bank's was upgraded to 'BB+'. India's economic growth is expected to drive bank profitability, helped by domestic demand and government expenditure.

Fitch Ratings reaffirmed the ratings of private sector banking giants Axis Bank and ICICI Bank on Thursday, maintaining a stable outlook for both institutions.

The credit rating agency confirmed the Long-Term Issuer Default Rating for both banks as 'BB+', indicating a heightened vulnerability to default risks. Axis Bank retained its viability rating of 'BB', while ICICI Bank saw an upgrade to 'BB+'.

Fitch cited India's robust economic growth prospects, with projected GDP expansion exceeding 6% for the fiscal years ending March 2025 and 2026, as a factor supporting the stable outlook. The growth is attributed to domestic demand, government capital expenditure, and improved capacity utilization, factors expected to bolster banks' profitability if risks are managed effectively.

(With inputs from agencies.)