Strong business position supported by a solid domestic franchise and strong management and strategy. Strong liquidity and above-average funding. Adequate capitalization and earnings. Above-average loan growth amid challenging operating conditions. The stable outlook on HDFC Bank Ltd. reflects our view that the bank will maintain its strong credit profile over the next 12-24 months. We expect the rating on HDFC Bank to move in tandem with the sovereign credit rating on India (unsolicited rating: BBB-/Stable/A-3). Standard&Poor's Ratings Services does not rate Indian banks above the sovereign rating because of the direct and indirect influence the sovereign in distress would have on a bank's operations, including its ability to service foreign currency obligations. We will lower the rating on
