Moody's affirms SBI, HDFC Bank ratings on strong asset quality

Moody's has affirmed 'Baa3' long-term deposit ratings and Baseline Credit Assessment for both SBI and HDFC Bank with a stable outlook. The affirmation reflects strong and stable asset quality, robust profitability supported by stable net interest margins, diversified non-interest income and low credit costs, along with strong capital positions. Moody's expects asset quality to remain broadly stable, though some moderation is possible in agriculture and MSME lending segments following rapid credit expansion.