CRISIL Ratings has reaffirmed its ratings for IDBI Bank Limited’s long-term debt instruments and its certificate of deposit programme. The bank’s long-term rating is set at ‘Crisil AA+(Fixed Deposits) /Crisil AA (Long-term Bonds) /Stable’, with a short-term rating of ‘Crisil A1+’ for its certificate of deposit programme. These ratings reflect the bank’s steady improvement in asset quality, healthy profitability, and strong capitalisation.
IDBI Bank’s Credit Ratings Reaffirmed by CRISIL
IDBI Bank Limited has received a reaffirmation of its credit ratings from CRISIL Ratings. The bank’s long-term debt instruments have been assigned a rating of ‘Crisil AA+/Crisil AA/Stable’. Additionally, its certificate of deposit programme has been reaffirmed at ‘Crisil A1+’. These ratings are a testament to the bank’s consistent financial performance and stability.
Key Strengths Supporting the Ratings
The reaffirmation of these ratings is underpinned by several key factors, including the bank’s steady improvement in asset quality, robust profitability, a stable and healthy deposit base, and sustained strong capitalisation. Furthermore, CRISIL acknowledges the ongoing and expected support from the Life Insurance Corporation of India (LIC) and the Government of India (Gol) as crucial, especially during the ongoing divestment process.
Withdrawal of Ratings for Specific Instruments
In line with CRISIL Ratings’ policy, the ratings on Tier-II Bonds (under Basel III) amounting to Rs 1,900 crore and Omni Bonds of Rs 1,000 crore have been withdrawn. This withdrawal is due to the redemption of these instruments and at the bank’s request.
Outlook and Future Monitoring
CRISIL Ratings anticipates that IDBI Bank will continue to benefit from the strong support of the Government of India and LIC. The ratings will be closely monitored in light of developments related to the stake sale by Gol and LIC, and any impact on the bank’s financial profile will be taken into consideration for future rating actions.
Source: BSE
