ICICI Bank's Credit Profile Upgraded by S&P Global

ICICI Bank's credit profile has been upgraded by S&P Global to 'a-' from 'bbb+', reflecting improved funding, strong market position, and digital capabilities. The bank is expected to maintain better asset quality than the Indian sector average. The most recent analyst rating on IBN stock is a Buy with a $35.00 price target.

ICICI Bank Limited has seen a significant upgrade in its credit profile, as announced by S&P Global Ratings on July 15, 2025. The bank's stand-alone credit profile (SACP) has been revised upward from 'bbb+' to 'a-', while its long-term issuer credit rating remains at 'BBB-' and the short-term rating at 'A-3'. The outlook on the long-term rating is positive.

The upgrade reflects several positive developments, including improved funding stability, strong market position, and robust digital capabilities. S&P Global noted that ICICI Bank's core deposits, which account for 86.6% of its total funding base, have provided a stable foundation. Additionally, the bank's high ratio of broad liquid assets to total assets (approximately 29%) and its strong business franchise have contributed to the positive assessment.

ICICI Bank is expected to maintain better asset quality than the Indian sector average over the next two years. While there may be a marginal deterioration in asset quality due to stress in certain pockets of the retail segment, supportive operating conditions and declining interest rates are likely to offset this.

The bank's capitalization is also expected to remain strong, with the risk-adjusted capital ratio projected to stay within the range of 10.5%-11.0%. This robust capitalization, along with its solid funding and liquidity profile, positions ICICI Bank favorably in the Indian banking sector.

The most recent analyst rating on ICICI Bank's stock (IBN) is a Buy with a $35.00 price target, reflecting investor confidence in the bank's future performance.

References:
[1] https://www.sec.gov/Archives/edgar/data/1103838/000095010325008872/dp231596_6k.htm