Page 64 - Index

Annexure to the Directors’ Report
Management Discussion and Analysis Report
Rating Services
The domestic credit rating business saw momentum due
to healthy bond issuances in the second half of 2024. We
expect the growth trajectory of bond market issuances to
continue this year with further cuts in interest rates.
While bank credit growth moderated, it remained in double
digits in 2024; we expect it to remain range-bound.
The government’s continued focus on infrastructure
spending will support investments in the infra-linked
sectors, though a broad-based revival of capex will
be gradual.
The credit quality outlook remains positive, with the credit
ratio (the ratio of number of rating upgrades to number of
rating downgrades) remaining above 1x and supported by
relatively leaner balance sheets of India Inc.
However, geopolitical uncertainties, including proposed
tariff hikes by the US administration, continue to pose risks,
especially to India’s export-oriented sectors.
Research, analytics and solutions
Crisil Intelligence
Crisil Intelligence witnessed momentum in consulting,
credit and risk offerings. We experienced increased demand
for our consulting services, driven by continued progress in
infrastructure investment and local economic development.
Industry research solutions saw traction for thematic
research studies. Crisil’s fixed income indices continued to
be the preferred choice among mutual funds for creating
sector-specific passive target maturity funds. The newly
updated Crisil AIF benchmarks were well-received by
the market.
The outlook for physical infrastructure and digital
infrastructure remains strong, fuelled by increasing demand
for innovation and data-driven decision-making.
Our credit risk offerings saw traction for Credit + ICON, an
integrated credit rating and spreading solution. There is
an increasing focus on AI/ML-backed credit assessment/
monitoring frameworks and data-backed analytics.
Credit rating business saw
momentum due to healthy
bond issuances in the second
half of 2024. We experienced
increased demand for our
consulting services, driven
by continued progress in
infrastructure investment and
local economic development.
We have integrated our GenAI capabilities into Credit + ICON
to enable credit analysts to generate draft summaries of
credit reports based on financial data and analyst reports.
In addition, a Natural Language Query feature has been
added on Fulkrum, our business intelligence platform.
These enhancements aim to elevate the value proposition
of our products and improve the user experience for data
analytics, risk and regulatory solutions.
Crisil Integral IQ
Crisil Integral IQ was impacted by curtailed discretionary
spending by global clients. The business saw momentum
in buy side offerings and made progress in leveraging Gen
AI in client solutions.
 The Buy-Side Solutions witnessed traction in middle office
and operations. However, the environmental, social and
governance services saw modest demand from top-tier
asset managers seeking niche workstreams and enhancing
their existing processes. The traditional sell-side research
segment faced cost-cutting pressures amid headwinds
such as a weak deal environment and budget pressures.
Risk Solutions saw increased client engagement in
transformation and risk operations, amidst pressure on
discretionary spends and restructuring by global banks.
62 Annual Report 2024