State Bank of India — Credit Ratings, 21-07-2025: Credit Rating

Moody's has affirmed State Bank of India's (SBI) Baa3 long-term deposit ratings and maintained a stable outlook. Crucially, its Baseline Credit Assessment (BCA) was upgraded to baa3 from ba1, alongside an upgrade for its Additional Tier 1 (AT1) securities. This reflects expectations of SBI's improved capital position over the next 12-18 months from strong internal generation and potential equity raises. The bank's CET1 ratio improved to 11.1% by March 2025, and gross NPLs significantly dropped to 1.8%. This positive action signals enhanced standalone financial strength, likely boosting investor confidence and potentially lowering borrowing costs for certain instruments, offering SBI greater strategic room.