CRISIL Ratings has reaffirmed its highest ratings of ‘CRISIL AAA/Stable’ on fixed deposits, ‘CRISIL AA+/Stable’ on Tier II Bonds, and ‘CRISIL A1+’ on Certificates of Deposit for IDFC FIRST Bank. These ratings apply to a total of ₹2,13,000 crore in fixed deposits, Tier II bonds, and Certificates of Deposit, underscoring the bank’s strong credit profile.
IDFC FIRST Bank’s Creditworthiness Affirmed by CRISIL
CRISIL Ratings has announced the reaffirmation of its robust credit ratings for IDFC FIRST Bank Limited. The agency has maintained the highest rating of ‘CRISIL AAA/Stable’ for the bank’s fixed deposits, indicating the strongest degree of safety regarding timely payment of interest and principal. Additionally, the ‘CRISIL AA+/Stable’ rating has been reaffirmed for Tier II Bonds (under Basel III), signifying a very low risk of default. The rating for Certificates of Deposits has also been reaffirmed at the highest short-term rating, ‘CRISIL A1+’, denoting superior credit quality.
Significant Debt Instruments Covered
These reaffirmed ratings cover a substantial aggregate amount of ₹1,60,000 crore in Fixed Deposits, ₹8,000 crore in Tier II Bonds (Under Basel III), and ₹45,000 crore in Certificates of Deposits. The total value of these instruments is approximately ₹2,13,000 crore. The reaffirmation reflects the sustained strengths in IDFC FIRST Bank’s business scale, its strengthening retail asset base, robust liability franchise, and healthy capitalisation, as highlighted by CRISIL.
Key Strengths Underpinning Ratings
CRISIL’s Rationale points to the steady scale-up of IDFC FIRST Bank’s business, supported by a growing retail asset base and a strong liability franchise. The bank’s capitalisation remains healthy, providing a solid cushion against potential risks. Despite some constraints from operating expenses and credit costs, the overall financial profile and strategic positioning of the bank have enabled CRISIL to maintain these strong ratings.
A detailed Rating Rationale from CRISIL is expected to provide further insights into the factors driving these ratings.
Source: BSE
