S&P affirms rating on HDFC Bank, says asset quality remains among the best

S&P has affirmed its stable rating on HDFC Bank to reflect the lender's strong business franchise besides its better funding and liquidity profile than industry peers.

"The bank's capitalisation is comfortable in our view, supported by strong earnings and regular capital raising to fund above-average growth. The bank's asset quality remains among the best in Indian banking industry due to its better risk management and portfolio diversity," said S&P.

Overall, it said, HDFC Bank's individual creditworthiness is significantly stronger than the average of Indian banking sector, reflected in its SACP of bbb-plus.

The stable outlook on HDFC Bank reflects that the bank will maintain its strong market position and favourable funding and liquidity metrics over the next 24 months.

( With inputs from ANI )