...Support-Driven IDR: Axis Bank Limited's Long-Term Issuer Default Rating (IDR) is driven by its Government Support Rating (GSR). It reflects Fitch Ratings' expectation of a moderate probability of extraordinary state support for Axis relative to the large state banks, if required, as Axis is privately owned. We view the bank to be systemically important. The Stable Outlook mirrors that on the Indian sovereign rating of `BBB-'. Axis' Viability Rating (VR) is currently one notch below the GSR. This reflects its moderate financial metrics compared with that of higher-rated peers, particularly profitability and capitalisation, as well as emerging asset-quality pressures stemming from its appetite for risk. Supportive Operating Environment: India's strong medium-term growth potential and its large, diversified economy are reflected in an operating environment score of `bb+', above the implied `b' category score. We project GDP growth of over 6% in the fiscal year to March 2025 (FY25) and FY26,...
