The BBB- long-term rating places the bank in the global investment-grade category and reflects S&P's assessment of Federal Bank's credit profile. According to the rating agency, the rating is supported by the bank's strong franchise, disciplined risk management, sound capitalisation, diversified funding profile, healthy liquidity position and consistent financial performance.

The bank said the investment-grade rating marks an important milestone in its growth journey and is expected to enhance its visibility among global investors and international financial institutions. It also believes the rating will strengthen confidence among customers, counterparties and other stakeholders.

Commenting on the development, managing director and CEO KVS Manian said the inaugural international investment-grade issuer rating reflects the strength of the bank's franchise, resilient business model and disciplined approach to growth, risk management and governance. He added that the bank remains focused on customer excellence, sustainable growth and long-term value creation while maintaining strong financial fundamentals.

Federal Bank said it has strengthened its balance sheet over the years by improving the quality of its liabilities, maintaining healthy capital buffers, enhancing profitability and continuing investments in technology and customer experience.

Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking, and other banking operations. As of 31 March 2026, it had 1,640 banking outlets and 2,112 ATMs/recyclers, including mobile ATMs.

The bank reported 22.22% jump in standalone net profit to Rs 1,259.10 crore on 11.62% increase in total income to Rs 8544.04 crore in Q4 FY26 over Q4 FY25.