Credit Rating
Awaiting price reaction for this filing.
ICRA has assigned [ICRA]AAA (Stable) rating to new infrastructure bonds worth Rs. 8,000 crore of Axis Bank. Ratings on existing instruments were reaffirmed: Basel III Tier I bonds at [ICRA]AA+ (Stable), Basel III Tier II bonds at [ICRA]AAA (Stable), infrastructure bonds at [ICRA]AAA (Stable), certificates of deposit at [ICRA]A1+, and fixed deposits at [ICRA]AAA (Stable). ICRA also withdrew ratings on matured Basel III Tier II bonds (Rs. 850 crore) and infrastructure bonds (Rs. 5,705 crore) that have been fully redeemed. Axis Bank remains the third-largest private sector bank with a 5.7% share in advances, strong capital buffers (CET I at 14.67%, CRAR at 17.07%), and healthy profitability (RoA at 1.7% in FY25), though ICRA flagged monitorable risks in unsecured retail loans.
This is a routine rating reaffirmation with no negative action; the highest AAA rating with Stable outlook reflects continued strong credit quality and should be neutral to positive for shareholders. The new Rs. 8,000 crore infrastructure bond rating indicates fresh borrowing capacity at attractive rates.