Moody’s Ratings on Tuesday reaffirmed the ratings of State Bank of India and HDFC Bank, maintaining a stable outlook, citing strong asset quality.
In separate statements, Moody’s confirmed the ‘Baa3’ long-term deposit ratings along with the ‘baa3’ Baseline Credit Assessment (BCA) and adjusted BCA for both SBI and HDFC Bank.
“SBI’s rating affirmation with a stable outlook reflects its large and well-diversified loan portfolio, supported by consistent asset quality,” Moody’s said. It also noted that the bank’s profitability is backed by stable net interest margins, diversified non-interest income, and relatively low credit costs.
The ratings further take into account SBI’s strong domestic presence, which ensures access to a wide base of low-cost deposits, along with its significant holdings in liquid government securities that support robust funding and liquidity, the agency added.
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