HDFC Bank Gets Top Rating from India Ratings

India Ratings and Research has given an A1+ rating to ₹300 billion of HDFC Bank’s certificates of deposit. The agency also kept its A1+ rating on the bank’s existing ₹950 billion CDs, the lender said in an exchange filing.

India Ratings reaffirmed the bank’s AAA long-term issuer rating with a stable outlook. It also kept the ratings unchanged on the bank’s other instruments: ₹250 billion of tier-II bonds at AAA, ₹150 billion of tier-I bonds at AA+, and ₹200 billion of infrastructure bonds at AAA.

The agency said the ratings reflect the bank’s financial strength, steady performance and diversified earnings. It added that HDFC Bank’s strong capital position and easy access to the market allow it to target loan growth ahead of the industry, though the merger with HDFC Ltd. has kept the loan-to-deposit ratio high.