Indian Bank is likely to maintain its solid funding and liquidity profile over the next 18-24 months, the report noted
It said the projections assume that initial shocks to private consumption and investment filter through to the rest of the economy.
The statement issued by S&P said, "The second wave brings in uncertainty, and a drawn-out covid-19 outbreak will impede India's recovery."
S&P said India's economy has stabilised over recent months, with progressively better manufacturing, services, labour market, and revenue data.