CRISIL Ratings has reaffirmed IDFC FIRST Bank’s ratings at ‘CRISIL AAA/Stable’, ‘CRISIL A1+’, and ‘CRISIL AA+/Stable’ for fixed deposits, certificate of deposits, and Tier II bonds, respectively. The ratings reflect the bank’s strengthening retail asset base and liability franchise, supported by healthy capitalization. These strengths are partially offset by modest profitability due to ongoing investments.
Ratings Reaffirmed
IDFC FIRST Bank’s ratings have been reaffirmed by CRISIL Ratings. The ratings include ‘CRISIL AAA/Stable’ for fixed deposits, ‘CRISIL A1+’ for certificate of deposits, and ‘CRISIL AA+/Stable’ for Tier II bonds (under Basel III).
Key Rating Drivers
The reaffirmed ratings are underpinned by a steady scale-up of business, a robust retail asset base, a strong liability franchise, and healthy capitalization. However, the bank’s profitability remains modest due to ongoing investments in its build-out phase.
Fixed Deposits
As of June 30, 2025, the bank’s fixed deposits stood at ₹1,29,640 crore, a 21.3% increase year-over-year. Fixed deposits accounted for 42.1% of total external liabilities. The depositor profile remains granular, with ticket sizes below ₹3 crore accounting for 61.5% of total fixed deposits.
Asset Growth
Funded assets grew by 20% year-over-year to ₹2,41,926 crore as of March 31, 2025. Retail, rural, and MSME funded assets grew by 19% year-over-year to ₹1,97,568 crore, representing 82% of total funded assets. By June 30, 2025, funded assets had increased to ₹2,53,233 crore, with retail, rural, and MSME funded assets reaching ₹2,03,954 crore (81% of total funded assets).
Liability Franchise
The bank’s liability franchise remains strong, with current and savings accounts (CASA) forming 48% of total deposits as of June 30, 2025. CASA, combined with retail term deposits, grew cumulatively by 26% to ₹2,04,935 crore as of March 31, 2025. Overall deposits grew by 26% during fiscal year 2025 and 20% (annualized) over Q1 2026, reaching ₹2,64,971 crore as of June 30, 2025.
Asset Quality
Gross non-performing assets (GNPAs) stood at 1.87% (₹4,434 crore) as of March 31, 2025, compared to 1.88% (₹3,718 crore) as of March 31, 2024. As of June 30, 2025, GNPA inched up further to 1.97%.
Profitability
The net interest margin was 6.0% of average total assets in fiscal year 2025, compared to 6.1% in fiscal year 2024. Return on average assets (RoAA) moderated to 0.5% for fiscal year 2025 from 1.1% for fiscal year 2024.
Capitalization
Capitalization is healthy, with a Tier 1 capital adequacy ratio (CAR) of 12.8% and an overall CAR of 15.0% as of June 30, 2025. The bank’s consolidated networth was substantial at ₹38,788 crore as of June 30, 2025.
Source: BSE
