S&P Global upgraded the rating of 6 banks in the country, check the list of banks here

Rating agency S&P Global upgraded the rating of India's economy growth on Wednesday. Along with this, the firm also upgraded the rating of 6 banks in India. After the upgrade by the rating agency, investors will keep an eye on the shares of these banks today.

According to S&P Global, the rating of many banks in India is connected to the sovereign credit rating of India. If there is a change in the sovereign credit rating, it also affects the banking sector. The country's economy decides whether the bank's business is positive or negative.

S&P Global has upgraded the ratings of Axis Bank, ICICI Bank, State Bank of India (SBI), HDFC Bank, Kotak Mahindra Bank and Indian Bank.

The triple B minus long-term and A3 short-term ratings for these banks have been maintained by the rating agency. These banks' rating outlook has also been updated from Stable to Positive at the same time.

Additionally, Axis Bank and ICICI Bank's standalone credit profiles have been improved by S&P Global. These banks' stand-alone credit profiles have improved slightly.

According to S&P Global's report, a loan may be reduced if pressure is present in the banking industry. Under such circumstances, it is anticipated that it will decrease to 3 percent by March 31, 2025. The gross loan rate up until March 31, 2024, was 3.5 percent.

The decisions taken regarding a strong balance sheet, better risk management, and policies will lead to a reduction in gross loan. If there is a reduction in gross loan, then the credit cost will go down, which will have a positive response on the banking sector.