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Informist, Friday, Feb. 6, 2026

MUMBAI – Fitch Ratings Thursday revised the outlook on ICICI Bank's long-term issuer default rating to positive from stable, while affirming the bank's rating at 'BB+'. Fitch also affirmed the bank's viability rating and the government support rating at 'bb+'.

"The Outlook revision is underpinned by the change in Fitch's outlook on the Indian banking sector operating environment (OE) factor score to positive from stable," the rating agency said. Fitch has revised the outlook on Indian banks' operating environment score to positive from stable, reflecting expectations of reduced sector risks due to enhanced regulations and supervision by the Reserve Bank of India.

The outlook for the Indian banking sector is also supported by the economy and strong medium-term growth potential, the rating agency said. Fitch forecasts India's GDP growth above 6% in 2026-27 (Apr-Mar).

Fitch expects ICICI Bank's large franchise, strong market position, and diversified income to underpin business and revenue generation through the cycle. The rating agency revised ICICI Bank's asset-quality score to 'bb+' from 'bb' as it expects the lender's impaired-loan ratio to remain below 2% through FY28, against 1.5% in Apr-Dec.

"The score also reflects lower concentration risks, adequate specific loan-loss coverage of about 76% (167% including other provisions, as per Fitch's estimate), and our expectation of sustained lower impaired-loan generation," Fitch said.

ICICI Bank reported a net profit of INR 113.18 billion for the December quarter, down 4% on year. At 0934 IST, shares of the bank were up 0.5% at INR  1,402.90 on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Shubham Rana

Edited by Avishek Dutta

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