Moody's affirms HDFC Bank’s credit ratings, maintains stable outlook

Moody's Ratings affirmed HDFC Bank Limited's Baa3 long-term deposit ratings and baa3 Baseline Credit Assessment, maintaining a stable outlook due to India's favorable operating environment. The bank's diversified loan portfolio and profitability support its capital generation and solvency. Despite post-merger profitability challenges, HDFC Bank's asset quality is stable. Upgrades are unlikely due to alignment with India's sovereign rating, with downgrades possible if financial fundamentals deteriorate significantly.