S&P upgrades outlook on Axis Bank to positive on improved asset quality

Private lender's loan growth and profitability should improve as economic activity gains pace in India, says agency.

Standard and Poor's (S&P) on Wednesday revised its outlook for India's Axis Bank from "stable" to "positive", citing improved asset quality of the privately owned lender.

The rating agency affirmed 'BB+' long-term and 'B' short-term issuer credit ratings on the bank under revised criteria.

In December 2021, the agency had set out details of revision in criteria for rating banks and non-bank financial institutions. It revised norms for Banking Industry Country Risk Assessment (BICRA).

Axis is likely to sustain improvements in asset quality supported by improved risk management and India’s economic recovery, S&P said in a statement.

The positive outlook