Rating Rationale
December 21, 2023 | Mumbai
Belstar Microfinance Limited
Rated amount enhanced for Bank Debt
 
Rating Action
Total Bank Loan Facilities RatedRs.6000 Crore (Enhanced from Rs.4500 Crore)
Long Term RatingCRISIL AA/Stable (Reaffirmed)
 
Rs.125 Crore Long Term Principal Protected Market Linked DebenturesCRISIL PPMLD AA/Stable (Reaffirmed)
Rs.300 Crore Long Term Principal Protected Market Linked DebenturesCRISIL PPMLD AA/Stable (Reaffirmed)
Rs.500 Crore Non Convertible DebenturesCRISIL AA/Stable (Reaffirmed)
Rs.50 Crore Subordinated DebtCRISIL AA/Stable (Reaffirmed)
Rs.100 Crore Subordinated DebtCRISIL AA/Stable (Reaffirmed)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has reaffirmed its rating on the long-term bank loan facilities and debt instruments of Belstar Microfinance Limited (Belstar) at ‘CRISIL AA/CRISIL PPMLD AA/Stable'

 

CRISIL Ratings had upgraded its rating on December 15, 2023, to the long term bank loan facilities and debt instruments of Belstar to ‘CRISIL AA/CRISIL PPMLD AA/Stable’ from ‘CRISIL AA-/CRISIL PPMLD AA-/Positive’

 

The rating primarily takes into consideration the substantial improvement in the company’s earnings profile driven by higher net interest margin (NIM) and controlled credit costs. The rating also continues to factor-in strong market position and long track record of Belstar in the Indian microfinance sector, continuation of support from its parent, Muthoot Finance Ltd (Muthoot Finance; ‘CRISIL AA+/Stable/CRISIL A1+’) given the high strategic importance and benefits of operational support from the Hand in Hand group, improving asset quality backed by sound risk management processes, healthy capitalization and, stable operating profitability. These strengths are partially offset by geographical concentration in portfolio, susceptibility of the microfinance sector to regulatory and legislative risks.

 

As on September 30, 2023, assets under management (AUM) stood at Rs 7874 crore from Rs 6193 crore as of March 31, 2023, registering an on-year growth of 27%. Average disbursement stood around 700 crore per month in H1FY24.

 

Belstar’s capital position remains adequate, supported by capital infusion of Rs 275 crore from Arum Holdings, Muthoot Finance and MAJ Invest in fiscal 2022. Further, in first quarter fiscal 2023, the company received capital of Rs 110 crore from Augusta Investments Zero PTE Ltd and Arum Holdings. With this infusion, networth stood at Rs 1092 crore and adjusted gearing at 4.8 times as of March 2023 as compared to 5.4 times in March 2021. As of September 30, 2023, the networth stood at Rs 1224 crore and adjusted gearing at 4.8 times.

Analytical Approach

CRISIL Ratings has assessed the standalone financial and business risk profiles of Belstar and has factored in its strategic importance to, and the strong financial support expected from, Muthoot Finance.

Key Rating Drivers & Detailed Description

Strengths:

Strategic importance to, and expectation of continued financial support from, the parent

Muthoot Finance will likely continue to support Belstar both on an ongoing basis and during distress, given its majority ownership and presence on the board of directors of Belstar, and the strategic importance of the latter to the group. Muthoot Finance is expected to maintain majority shareholding in the company. The microfinance business helps diversify the financial product suite of the parent. The business is established and growing at a healthy pace and formed ~7% of the group AUM as on December 31, 2022. Also, the business is scalable and expected to grow steadily over the medium term. Muthoot Finance has infused Rs 211.83 crore in Belstar till date. While Belstar does not have a common branding with the Muthoot group, it carries a tagline as part of its name to clearly state that it is a subsidiary of Muthoot Finance. The Muthoot group has a strong presence on the board of Belstar through Mr George Alexander (son of the managing director of Muthoot Finance), Mr George M Jacob (son of the joint managing director of Muthoot Finance) and Mr K R Bijimon (key management person).

 

Healthy capital position

The company has received Rs 275 crore in March 2022 from Arum Holdings, Muthoot Finance and MAJ Invest. Further, in first quarter fiscal 2023, the company received capital of Rs 110 crore from Augusta Investments Zero PTE Ltd and Arum Holdings. This has improved its networth to Rs 1092 crore and adjusted gearing at 4.8 times as of March 2023. As of September 30, 2023, the networth stood at Rs 1224 crore and adjusted gearing at 4.8 times. With the expected internal accruals, overall capitalization profile is expected to remain adequate. Gearing should be around 6 times on a steady state basis over the medium term.

 

Substantial improvement in earnings profile

Belstar has substantially improved its profitability in the current fiscal and previous fiscal. The company reported a PAT of Rs 135 core in H1FY24 & Rs 130 crore in fiscal 2023. Belstar has adequate earnings backed by moderate operating and credit costs. With the revised regulatory framework, company has increased its interest rate by 200 to 400 bps for select markets and customers in fiscal 2023. Company has shown improvement in profitability fiscal 2023 onwards owing to improvement in the average yield on the incremental disbursement, income from the off-book portfolio and controlled credit cost and ROMA has increased from 2.0% in fiscal 2023 to 3.3% as on September 30, 2023. Operating cost (5-5.5% for the past three fiscals) is lower compared with other microfinance institutions (MFIs) due to its branch-based collection model. Credit cost also has been low historically at 0.2-1.3%. Return on managed assets (RoMA) stood at 3.5% in 2020. However, in fiscal 2021, net profit fell to Rs 47 crore from Rs 99 crore in fiscal 2020, primarily due to higher provisioning of Rs 81 crore to account for contingencies arising from delinquencies. Consequently, RoMA stood at 1.3% for fiscal 2021. However, pre-provisioning profit stood at Rs 138 crore in fiscal 2021 against Rs 156 crore in fiscal 2020. Similarly, in fiscal 2022, the company reported pre-provisioning profit of Rs 206 crore and provisioning of Rs 150 crore, which led to profit after tax of Rs 45 crore and RoMA of 1.0%. In fiscal 2023, company reported pre provisioning profit of Rs 314 crore translating into return on PPOP at 4.8% Resultantly, despite the credit cost of 2.2% in fiscal 2023 company reported a RoMA of 2.0%. Over the medium term, the company’s ability to maintain the quality of book created post pandemic will remain a crucial factor from an earnings perspective.

 

Continuously improving asset quality

Over the last two years asset quality has weakened owing to the pandemic. The 30+ dpd and 90+ dpd stood 4.0% and 2.9%, respectively, as of March 2021. Furthermore, the asset quality of the industry at large and that of Belstar was impacted by the second wave. The 30+ and 90+ dpd of the company rose to 10.5% and 8.1% respectively in June 2022 as compared to 9.1% and 5.8%, respectively, as on March 31, 2022. The rise in slippages in primarily due to the restructured portfolio as majority of the restructured book saw billing cycle start from Q4 2022 which has resulted in the rise in 90+ dpd. Nevertheless, the company continued with higher provisioning carrying Rs 258 crore of ECL provisioning as of 9M 2023. Consequently, the net NPA stood at 2.03% as on December 31, 2022 as compared to 2.32% as on March 31, 2022.

 

However, in Q4 2023, the company sold Rs 250 crore of the stressed portfolio to an ARC. This primarily constitutes the restructured portfolio and 180+ dpd portfolio which has helped in reducing the 90+ dpd to around 2.6% in March 2023. Additionally, portfolio which was generated from July 2021 onwards (98% of the overall AUM as of March 31, 2023) is performing well with 90+ dpd stood at just 1.0%. As of September 30, 2023, the PAR 30+ stood at 2.9% and PAR 90+ stood at 2.1% and as of March 31, 2023, the PAR 30+ stood at 3.3% and PAR 90+ stood at 2.6%. While the company’s asset quality performance continues to restore gradually, its ability to achieve and sustain its pre-pandemic level of asset quality position remains critical and in the course of it, portfolio created post Covid-19 remains a monitorable.

 

Weakness:

Geographical concentration of portfolio

Tamil Nadu accounts for a large proportion of the portfolio, though its share has reduced to 49.1% as on March 31, 2023, from 76% as on September 30, 2018. The high geographical concentration is mainly on account of association with the Hand in Hand group, which has a strong presence in the state. More importantly, 11% of the loan book is concentrated in three districts and ~20% in six districts, all of which are located contiguously. The concentration, especially in contiguous districts, is higher compared with other MFIs rated by CRISIL Ratings. This increases susceptibility to local socio-political risks inherent in the microfinance business. Nevertheless, the strong local presence of the Hand in Hand group in these districts might be a mitigant. Belstar is focusing on other states to drive incremental growth and reduce the share of Tamil Nadu. Amidst fast growth in the portfolio, efforts to reduce concentration and establish presence in new geographies will be key monitorables.

 

Susceptibility to regulatory and legislative risks associated with the microfinance sector

The microfinance sector has witnessed two major disruptive events in the past decade. The first was the crisis promulgated by the ordinance passed by the Government of Andhra Pradesh in 2010 and the second was demonetisation in 2016. In addition, the sector has faced issues of varying intensity in several geographies. Promulgation of the ordinance on MFIs by the Government of Andhra Pradesh in 2010 demonstrated their vulnerability to regulatory and legislative risks. The ordinance triggered a chain of events that adversely affected the business models of MFIs by impairing their growth, asset quality, profitability and solvency. Similarly, the sector witnessed high level of delinquencies post-demonetisation and the subsequent socio-political events. The microfinance sector remains susceptible to regional issues such as elections, natural calamities and borrower protests, which may result in momentary spurt in delinquencies. This indicates the fragility of the business to external risks. As the business involves lending to the poor and downtrodden sections of society, MFIs will remain exposed to socially sensitive factors, including high interest rates, tighter regulations and legislations.

Liquidity: Strong

The asset-liability management (ALM) profile was comfortable, with cumulative positive mismatches across all buckets up to one year as on September 30, 2023 on provisional basis. Cash and equivalent, including liquid investments, stood at Rs 452 crore as on September 30, 2023. Liquidity is supported by steady monthly collection of over Rs 400 crore (excluding prepayments) in the past 2-3 months, which was adequate to meet monthly debt obligation and operating expenses. Liquidity is cushioned by Rs 2053 crore sanctioned by various financial institutions, which has not been utilized yet. CRISIL Ratings understands Muthoot Finance will provide funding support to ensure timely servicing of debt.

Outlook: Stable

CRISIL Ratings believes that the earning profile of the company will improve further. Additionally, Belstar will continue to receive strong operational, financial and managerial support from Muthoot Finance and maintain adequate capitalisation over the medium term.

Rating Sensitivity factors

Upward factors

 

Downward factors

About the Company

Belstar was incorporated in January 1988 in Bengaluru. It obtained a non-banking financial company (NBFC) licence from the RBI in March 2001 and was reclassified as an NBFC-MFI in 2013. The company was acquired by the Hand in Hand group, a non-governmental organisation, in September 2008. Muthoot Finance, the largest gold loan NBFC in the country, made an equity investment in Belstar in 2016 and held stake of 57% as on March 31, 2023. Belstar had a portfolio of Rs 6,192 crore as on March 31, 2023, with operations in 18 states and 170 districts. Under the SHG model, it has groups of 10-20 people and an average ticket size of Rs 45,000, and in the joint liability group model, it has groups of 4-10 people and an average ticket size of Rs 25,000.

Key Financial Indicators

Particulars

Unit

Sep 23

FY 2023

FY 2022

FY 2021

FY 2020

Total assets

Rs crore

7,013

6,227

4,560

3,467

2,519

Total income

Rs crore

791

1,038

728

553

501

Profit after tax

Rs crore

135

130

45

47

99

Gross NPAs (90+ dpd)

%

2.1

2.6

5.8

2.9

1.1

Gearing

Times

4.4

4.4

4.2

5.4

4.0

Adjusted gearing

Times

4.8

4.8

4.4

5.3

4.2

Return on assets

%

3.3

2.0

1.0

1.3

3.5

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of allotment

Coupon rate (%)

Maturity date

Issue size (Rs.Crore)

Complexity level

Rating assigned with outlook

INE443L07158

Long Term Principal Protected Market Linked

28-Feb-22

GSEC LINKED

28-May-24

125

Highly Complex

CRISIL PPMLD AA/Stable

INE443L07166

Long Term Principal Protected Market Linked

31-Oct-22

G-SEC LINKED

31-Oct-24

300

Highly Complex

CRISIL PPMLD AA/Stable

INE443L08149

Subordinated Debt

19-Jun-2023

11

19-Jul-29

150

Complex

CRISIL AA/Stable

INE443L08156

Non-convertible debentures

1-Aug-23

10

1-Aug-25

217

Simple

CRISIL AA/Stable

INE443L08164

Non-convertible debentures

6-Oct-23

10

31-Mar-26

283

Complex

CRISIL AA/Stable

NA

Non-Fund Based Limit^

NA

NA

NA

20

NA

CRISIL AA/Stable

NA

Cash credit

NA

NA

NA

104

NA

CRISIL AA/Stable

NA

Overdraft facility

NA

NA

NA

0.5

NA

CRISIL A1+

NA

Proposed long-term bank loan facility

NA

NA

NA

21.77

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

1-Apr-25

64.67

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

30-Sep-25

502.43

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Oct-25

75

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

1-Jul-25

184.38

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

30-Sep-24

12.5

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

15-Aug-26

358.33

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

25-Nov-25

172.92

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Jul-24

17.69

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

25-Mar-25

19.84

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

5-Mar-25

56.25

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

20-Mar-24

22.5

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

26-Sep-25

499.44

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

1-Oct-25

108.74

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

13-Jun-25

240.63

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

15-Jun-26

195.45

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

30-Jun-24

18.75

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

25-Sep-26

50

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

23-Jun-25

128.48

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

9-Feb-24

1.75

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

28-Mar-25

18.32

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Mar-26

351.62

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

1-Apr-26

18.79

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

29-Nov-24

70

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

30-Apr-25

26.25

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Dec-25

371.87

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

14-Aug-25

169.45

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

28-Feb-26

1459.08

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

18-Jun-25

43.75

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

15-Feb-25

35.92

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

18-Mar-25

37.5

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

30-Aug-25

264.58

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Mar-25

44.97

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

30-Sep-25

72.12

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

27-Jan-24

5

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Jul-25

68.51

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

25-Nov-23

2.5

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

18-Mar-24

11.25

NA

CRISIL AA/Stable

NA

Term Loan

NA

NA

31-Mar-25

52.5

NA

CRISIL AA/Stable

^CEL for hedging forex liability

Annexure - Rating History for last 3 Years
  Current 2023 (History) 2022  2021  2020  Start of 2020
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 5980.0 CRISIL AA/Stable 15-12-23 CRISIL A1+ / CRISIL AA/Stable 16-11-22 CRISIL AA-/Stable 22-06-21 CRISIL AA-/Stable 30-04-20 CRISIL A+/Positive CRISIL A+/Stable
      -- 19-07-23 CRISIL AA-/Positive / CRISIL A1+ 21-10-22 CRISIL AA-/Stable 07-06-21 CRISIL AA-/Stable 18-03-20 CRISIL A+/Positive --
      -- 17-07-23 CRISIL AA-/Positive / CRISIL A1+ 11-06-22 CRISIL AA-/Stable 15-02-21 CRISIL AA-/Stable 06-03-20 CRISIL A+/Positive --
      -- 15-06-23 CRISIL AA-/Positive / CRISIL A1+ 02-03-22 CRISIL AA-/Stable   -- 27-02-20 CRISIL A+/Positive --
      -- 01-06-23 CRISIL AA-/Positive / CRISIL A1+ 24-02-22 CRISIL AA-/Stable   -- 07-02-20 CRISIL A+/Positive --
      -- 19-05-23 CRISIL AA-/Positive / CRISIL A1+   --   -- 08-01-20 CRISIL A+/Stable --
      -- 12-05-23 CRISIL AA-/Positive   --   --   -- --
      -- 07-02-23 CRISIL AA-/Stable   --   --   -- --
Non-Fund Based Facilities LT 20.0 CRISIL AA/Stable 15-12-23 CRISIL AA/Stable   --   --   -- --
      -- 19-07-23 CRISIL AA-/Positive   --   --   -- --
      -- 17-07-23 CRISIL AA-/Positive   --   --   -- --
Non Convertible Debentures LT 500.0 CRISIL AA/Stable 15-12-23 CRISIL AA/Stable 16-11-22 CRISIL AA-/Stable 22-06-21 CRISIL AA-/Stable 30-04-20 CRISIL A+/Positive --
      -- 19-07-23 CRISIL AA-/Positive 21-10-22 CRISIL AA-/Stable 07-06-21 CRISIL AA-/Stable   -- --
      -- 17-07-23 CRISIL AA-/Positive 11-06-22 CRISIL AA-/Stable 15-02-21 CRISIL AA-/Stable   -- --
      -- 15-06-23 CRISIL AA-/Positive 02-03-22 CRISIL AA-/Stable   --   -- --
      -- 01-06-23 CRISIL AA-/Positive 24-02-22 CRISIL AA-/Stable   --   -- --
      -- 19-05-23 CRISIL AA-/Positive   --   --   -- --
      -- 12-05-23 CRISIL AA-/Positive   --   --   -- --
      -- 07-02-23 CRISIL AA-/Stable   --   --   -- --
Subordinated Debt LT 150.0 CRISIL AA/Stable 15-12-23 CRISIL AA/Stable   --   --   -- --
      -- 19-07-23 CRISIL AA-/Positive   --   --   -- --
      -- 17-07-23 CRISIL AA-/Positive   --   --   -- --
      -- 15-06-23 CRISIL AA-/Positive   --   --   -- --
      -- 01-06-23 CRISIL AA-/Positive   --   --   -- --
Long Term Principal Protected Market Linked Debentures LT 425.0 CRISIL PPMLD AA/Stable 15-12-23 CRISIL PPMLD AA/Stable 16-11-22 CRISIL PPMLD AA- r /Stable   --   -- --
      -- 19-07-23 CRISIL PPMLD AA-/Positive 21-10-22 CRISIL PPMLD AA- r /Stable   --   -- --
      -- 17-07-23 CRISIL PPMLD AA-/Positive 11-06-22 CRISIL PPMLD AA- r /Stable   --   -- --
      -- 15-06-23 CRISIL PPMLD AA-/Positive 02-03-22 CRISIL PPMLD AA- r /Stable   --   -- --
      -- 01-06-23 CRISIL PPMLD AA-/Positive 24-02-22 CRISIL PPMLD AA- r /Stable   --   -- --
      -- 19-05-23 CRISIL PPMLD AA-/Positive   --   --   -- --
      -- 12-05-23 CRISIL PPMLD AA-/Positive   --   --   -- --
      -- 07-02-23 CRISIL PPMLD AA-/Stable   --   --   -- --
All amounts are in Rs.Cr.
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Cash Credit 2 YES Bank Limited CRISIL AA/Stable
Cash Credit 100 State Bank of India CRISIL AA/Stable
Cash Credit 2 Kotak Mahindra Bank Limited CRISIL AA/Stable
Non-Fund Based Limit^ 20 State Bank of India CRISIL AA/Stable
Overdraft Facility 0.5 IDFC FIRST Bank Limited CRISIL AA/Stable
Proposed Long Term Bank Loan Facility 2.29 Not Applicable CRISIL AA/Stable
Proposed Long Term Bank Loan Facility 19.48 Not Applicable CRISIL AA/Stable
Term Loan 19.84 Dhanlaxmi Bank Limited CRISIL AA/Stable
Term Loan 1459.08 State Bank of India CRISIL AA/Stable
Term Loan 18.79 Punjab National Bank CRISIL AA/Stable
Term Loan 502.43 Axis Bank Limited CRISIL AA/Stable
Term Loan 52.5 YES Bank Limited CRISIL AA/Stable
Term Loan 17.69 DCB Bank Limited CRISIL AA/Stable
Term Loan 1.75 Muthoot Vehicle and Asset Finance Limited CRISIL AA/Stable
Term Loan 56.25 Equitas Small Finance Bank Limited CRISIL AA/Stable
Term Loan 35.92 Tata Capital Financial Services Limited CRISIL AA/Stable
Term Loan 11.25 Woori Bank CRISIL AA/Stable
Term Loan 5 Ujjivan Small Finance Bank Limited CRISIL AA/Stable
Term Loan 68.51 Union Bank of India CRISIL AA/Stable
Term Loan 12.5 Bank of Bahrain and Kuwait B.S.C. CRISIL AA/Stable
Term Loan 50 Kookmin Bank CRISIL AA/Stable
Term Loan 172.92 DBS Bank India Limited CRISIL AA/Stable
Term Loan 264.58 The Hongkong and Shanghai Banking Corporation Limited CRISIL AA/Stable
Term Loan 499.44 ICICI Bank Limited CRISIL AA/Stable
Term Loan 184.38 Bandhan Bank Limited CRISIL AA/Stable
Term Loan 358.33 Bank of Baroda CRISIL AA/Stable
Term Loan 108.74 IDBI Bank Limited CRISIL AA/Stable
Term Loan 128.48 Kotak Mahindra Bank Limited CRISIL AA/Stable
Term Loan 37.5 The Federal Bank Limited CRISIL AA/Stable
Term Loan 72.12 UCO Bank CRISIL AA/Stable
Term Loan 43.75 Sumitomo Mitsui Banking Corporation CRISIL AA/Stable
Term Loan 18.32 Nabkisan Finance Limited CRISIL AA/Stable
Term Loan 22.5 HDFC Bank Limited CRISIL AA/Stable
Term Loan 64.67 Aditya Birla Finance Limited CRISIL AA/Stable
Term Loan 351.62 Punjab National Bank CRISIL AA/Stable
Term Loan 44.97 The Karnataka Bank Limited CRISIL AA/Stable
Term Loan 2.5 Utkarsh Small Finance Bank Limited CRISIL AA/Stable
Term Loan 70 RBL Bank Limited CRISIL AA/Stable
Term Loan 26.25 SBM Bank (India) Limited CRISIL AA/Stable
Term Loan 371.87 Small Industries Development Bank of India CRISIL AA/Stable
Term Loan 169.45 Standard Chartered Bank Limited CRISIL AA/Stable
Term Loan 240.63 IDFC FIRST Bank Limited CRISIL AA/Stable
Term Loan 18.75 Indian Overseas Bank CRISIL AA/Stable
Term Loan 75 Bajaj Finance Limited CRISIL AA/Stable
Term Loan 195.45 Indian Bank CRISIL AA/Stable
^CEL for hedging forex liability
Criteria Details
Links to related criteria
CRISILs Bank Loan Ratings - process, scale and default recognition
Rating Criteria for Finance Companies
Rating criteria for hybrid debt instruments of NBFCs/HFCs
Criteria for Notching up Stand Alone Ratings of Companies based on Parent Support

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CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").
 
For more information, visit www.crisilratings.com 

 



About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. 

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

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This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') that is provided by CRISIL Ratings Limited ('CRISIL Ratings'). To avoid doubt, the term 'report' includes the information, ratings and other content forming part of the report. The report is intended for the jurisdiction of India only. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities referred to above. Access or use of this report does not create a client relationship between CRISIL Ratings and the user.

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Rating criteria by CRISIL Ratings are generally available without charge to the public on the CRISIL Ratings public website, www.crisilratings.com. For latest rating information on any instrument of any company rated by CRISIL Ratings, you may contact the CRISIL Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 1301.

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CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisil.com/en/home/our-businesses/ratings/credit-ratings-scale.html