S&P upgrades Axis Bank, nine other Indian banks

S&P Global Ratings upgraded Axis Bank's stand-alone credit profile to 'bbb+' from 'bbb', with long-term and short-term ratings revised to 'BBB' and 'A-2' from 'BBB-' and 'A-3'. The outlook moved from 'positive' to 'stable'.

The upgrade covers ten Indian financial institutions following India's sovereign rating upgrade to 'BBB/Stable/A-2'. Axis Bank's risk-adjusted capitalization is projected to stay above 10% over the next 24 months, though return on assets is forecast to decline moderately to 1.4%-1.5%.