Rating Rationale
October 09, 2023 | Mumbai
IDFC FIRST Bank Limited
'CRISIL AA+/Stable' assigned to Tier II Bonds (Under Basel III)
 
Rating Action
Rs.3000 Crore Tier II Bonds (Under Basel III)CRISIL AA+/Stable (Assigned)
Rs.45000 Crore Certificate of DepositsCRISIL A1+ (Reaffirmed)
Tier II Bonds (Under Basel III) Aggregating Rs.5000 CroreCRISIL 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 assigned its ‘CRISIL AA+/Stable’ rating to the Rs 3,000 crore Tier-II bonds (under Basel III) of IDFC FIRST Bank Ltd (IDFC FIRST) and has reaffirmed its 'CRISIL AA+/Stable/CRISIL A1+' ratings on the other debt instruments.

 

The rating continues to be driven by steady scale up of business, backed by strengthening of both retail asset and liability side franchise, improved asset quality, and expectation of continued improvement in operating and overall profitability. Furthermore, the ratings reflect the bank’s healthy capitalisation level.

 

IDFC FIRST’s funded assets grew 24% year-on-year to Rs 1,60,599 crore as on March 31, 2023, from Rs 1,29,051 crore as on March 31, 2022. Within this, the bank’s retail funded assets (69% of total funded assets as on March 31, 2023) grew 34% year-on-year, thereby outpacing the growth of 21% clocked by the banking industry over fiscal 2023. The bank’s overall funded assets grew 25% y-o-y, to Rs 1,71,578 crore as on June 30, 2023, of which retail funded assets were Rs 1,18,071 crore (69% of the total funded assets), there by reporting y-o-y growth of 30%.

 

Furthermore, the bank’s liability franchise has also strengthened with deposits of current account and savings accounts (CASA) and term deposits of up to Rs 5 crore having grown 45% to Rs 1,13,745 crore as on March 31, 2023, from Rs 78,515 crore as on March 31, 2022. These comprised 79% of total deposits as on March 31, 2023 (74% as on March 31, 2022). As on June 30, 2023, CASA and term deposits of up to Rs 5 crore were Rs 1,20,980 crore and comprised 78% of total deposits.

 

The bank’s overall gross non-performing assets (GNPAs) reduced to 2.17% (Rs 3,603 crore) as on June 30, 2023 from 2.51% (Rs 3,884 crore) as on March 31, 2023, (3.70% (Rs 4,469 crore) as on March 31, 2022). This was supported by lower slippages largely driven by gradual shift towards retail and commercial financing and write-offs in the legacy infra book.

 

Retail and commercial book comprised 79% of total funded assets as on June 30, 2023 (78.5% as on March 31, 2023) and GNPAs in retail and commercial portfolio reduced to 1.53% (Rs 2,080 crore) as on June 30, 2023 from 1.65% (Rs 2,075 crore) as on March 31, 2023, (2.63% (Rs 2,432 crore) as on March 31, 2022).

 

Profitability continues to improve with net earnings having increased to Rs 2,485 crore in fiscal 2023 from Rs 135 crore in fiscal 2022 (Rs 483 crore in fiscal 2021). Correspondingly, return on average assets (RoAA) increased to 1.2% for fiscal 2023 from 0.1% for fiscal 2022 and 0.3% for fiscal 2021. The overall improvement in profitability was driven by improved net interest margin (5.9% of average total assets in fiscal 2023 and 5.5% in the previous fiscal) and lower credit costs (0.8% of average total assets in fiscal 2023; 1.8% in fiscal 2022). Net earnings were Rs 731.5 crore with ROAA of 1.3% in first quarter of fiscal 2024 against Rs 485 crore and 1% in corresponding period in previous fiscal.

 

Over the medium term, the bank’s capital position is expected to remain healthy while its earnings profile continues to improve. The asset quality is also expected to remain stable but as the business continues to scale with higher focus on the retail segment, the bank’s ability to sustain asset quality and profitability along with growth will remain a key monitorable.

 

CRISIL Ratings will continue to monitor the progress on the announced amalgamation amongst IDFC Financial Holdings Company Limit (IDFC FHCL), IDFC Ltd and IDFC First and its impending impact, if any, on the bank.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of IDFC FIRST and its subsidiaries. This is because of majority shareholding, business and financial linkages and shared brand.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation

Key Rating Drivers & Detailed Description

Strengths:

Healthy capitalisation

Capitalisation is healthy, as reflected in Tier 1 capital adequacy ratio (CAR) of 13.70% and overall CAR of 16.96% as on June 30, 2023 (14.20% and 16.82%, respectively, as on March 31, 2023). The capital position is supported by timely capital raises of Rs 2,196 crore in fiscal 2023, and Rs 2,000 crore and Rs 3,000 crore in the first quarters of fiscals 2021 and 2022, respectively, along with Tier II bonds of Rs 1500 crore each, raised in the fiscal 2022 and fiscal 2023. Hereafter, the anticipated continuity of improvement in profitability would further support the capitalisation buffers, and the bank’s ability to demonstrate this remains critical. On June 30, 2023, the bank’s consolidated networth was sizeable at Rs 26,624 crore, thereby providing cushion against asset-side risks, with networth coverage for net NPAs of 23.2 times as on that date. (Rs 25,847 crore and 19.8 times, respectively, as on March 31, 2023). In the first week of October 2023, the Bank has further raised Rs. 3,000 core of equity capital through QIP which has further strengthened the capital adequacy of the Bank to support growth.

 

As the growth strategy remains focused on the retail and commercial loans portfolio along with scaling down of the legacy infrastructure loan portfolio, the bank’s capital consumption is expected to reduce. Additionally, improved profitability will aid capitalisation ensuring that it remains healthy to support credit growth over the medium term.

 

Strengthened liability franchise:

With healthy growth rate of 37% in overall deposits (including certificate of deposits) in fiscal 2023 (19% in fiscal 2022), the bank had outpaced the banking industry’s deposit growth rate. The customer deposits (excluding the certificate of deposits) grew by 47% (year on year) to Rs 1,36,812 crore as on March 31, 2023, from Rs. 93,214 crore as on March 31, 2022. This was largely driven by traction in granular deposit franchise (CASA deposits and term deposits up to Rs 5 crore) which grew 45% between fiscals 2022 and 2023; These deposits comprised 79% of total deposits as on March 31, 2023. Mobilisation of CASA deposits have been steady, accounting for 49.8% of total deposits (35.7% of overall resources) as on March 31, 2023 (48.4% (32.3%), as on March 31, 2022). 

 

The overall deposits grew by 36% y-o-y to Rs 1,54,427 crore in first quarter of fiscal 2024 and customer deposits grew by 44% y-o-y. CASA and term deposits upto Rs. 5 crore comprised 78% of total deposits as on as on June 30, 2023. CASA deposits were at 46.5% (34% of overall resources) as on June 30, 2023, in absolute terms overall CASA remains stable.

 

Over the past few years, the bank has reduced its dependence on wholesale deposits, certificate of deposits and discharged majority of other high-cost legacy liabilities by replacing it with retail deposits. This has strengthened its overall liability franchise by making it more granular. In the near future, the bank is expected to retire ~Rs 14,195 crore of high-cost bonds and Rs. 1,860 crore, of legacy borrowings through refinance, which shall further strengthen its resource profile. As the bank’s credit grows over the medium term, its ability to adequately scale its retail liability base to support this traction will remain a monitorable.

 

Increased retailisation of asset book supporting asset quality improvement: 

Total funded assets grew to Rs 1,71,578 crore as on June 30, 2023, from Rs 1,60,599 crore as on March 31, 2023, (Rs 1,29,051 crore as on March 31, 2022).  This growth was propelled by significant scale up in the proportion of granular retail and commercial book to 79% of the overall funded assets as on June 30, 2023 (78.5% and 71.7% as on March 31, 2023 and March 31, 2022).

 

The retail and commercial portfolio grew to Rs 1,36,066 crore as on June 30, 2023, from Rs 1,26,135 crore as on March 31, 2023, and Rs 92,477 crore as on March 31, 2022.  There was growth across retail product offerings including prime home loans, new vehicle loans, credit card, gold loans, education loans, tractor loans being launched in the last 2 years and being scaled up from a relatively low base.

 

As the infrastructure financing portfolio, which was a major contributor to the GNPAs of the bank in the past, has already reduced sharply (being gradually replaced by retail loans which have grown at a steady pace) the portfolio composition has changed structurally, leading to improvement in the overall asset quality.

 

In the coming years, the management plans to maintain its steady growth trajectory in the retail and commercial loan book by leveraging their expertise and track record and targeting small entrepreneurs and retail customers to drive growth. On the other hand, the corporate book (non-infrastructure; 16% of total funded assets as on June 30, 2023) is expected to grow selectively while the infrastructure book (2.2% as on June 30, 2023) is left to run down. Consequently, the concentration risk in total funded assets has reduced, with the top 10 borrowers accounting for only 2.7% as on June 30, 2023.

 

The bank’s overall GNPAs reduced to 2.17% (Rs 3,603 crore) as on June 30, 2023, from 2.51% (Rs 3,884 crore) as on March 31, 2023, (3.70% (Rs 4,469 crore) as on March 31, 2022). This was supported by lower overall slippages and improved asset quality in the retail and commercial funded assets and write-offs in the legacy infra book. GNPAs in retail and commercial portfolio reduced to 1.53% (Rs 2080 crore) as on June 30, 2023, from 1.65% (Rs 2,075 crore) as on March 31, 2023, (2.63% (Rs 2,432 crore) as on March 31, 2022). At the same time, the GNPAs of the corporate (non-infrastructure) book was 2.65% (Rs 692 crore) as on June 30, 2023, against 2.87% (Rs 695 crore) as on March 31, 2023, and 2.75% (Rs 599 crore) as on March 31, 2022. The bank’s provision coverage ratio also remains healthy.

 

The bank continues to take various risk management initiatives including reducing borrower concentration, industry concentration, exposure to high-risk sectors, which should support the overall asset quality over the medium term.

 

Leading indicators of asset quality, that is high collection efficiency levels (~99.5%) and the improving trajectory of SMA 1 and SMA 2 levels to 0.85% of retail, rural and SME segment as on June 30, 2023, from 1.25% as on June 30, 2022, point to steady asset quality levels. Nevertheless, given the recent high growth rates in the retail portfolio, asset quality performance as the portfolio seasons will need to be seen.

 

Weakness:

Modest, albeit improving, profitability:

Since fiscal 2022, IDFC FIRST’s overall profitability has continued to improve at a steady pace on a quarter-on-quarter basis. The net earnings on a consolidated basis rose to Rs 2,485 crore for fiscal 2023 with return on average assets (ROAA) of 1.2%, against Rs 132 crore and 0.1%, respectively, for fiscal 2022 (Rs 483 crore and 0.3%, respectively, for fiscal 2021). Net earnings were Rs 731.5 crore with ROAA of 1.3% in first quarter of fiscal 2024 against Rs 485 crore and 1% in corresponding period in previous fiscal. Over the past few fiscals, net earnings have been low due to the investments required to scale up the business, as well as higher credit costs emanating from the legacy book and the Covid-19 pandemic.

 

Given that the bank has been in its early stage of growth, in order to diversify their retail product offerings to include prime home loans, credit card, new car loans, gold loans, education loans, tractor loans among others and to enhance CASA deposits and retailisation of the loan book, the bank rolled out 618 new branches, 929 new automated teller machines (ATMs), hired more than 25,500 employees, and invested in digital innovation initiatives since December 2018. The bank has also launched and scaled up Wealth Management, FASTag, Cash Management, Transaction Banking services which entailed set up costs. As a result, operating cost has remains relatively high. However, it is expected to reduce over the medium term with planned expansion in funded assets leading to economies of scale.

 

Substantial scale up in retail and commercial loan portfolio has been supporting the core profitability of the bank, leading to a pre-provisioning operating profit of Rs 4,996 crore for fiscal 2023 (2.3% of average total assets), against Rs 3,284 crore (1.9% of average total assets) for fiscal 2022. The same was Rs 1472.39 crore (2.6%) and Rs 958.17 crore (2.1%) in first quarter of fiscal 2024 and fiscal 2023 respectively. The net interest margin is also healthy at 6.7% for first quarter of fiscal 2024 against 5.9% of average total assets for fiscal 2023 (5.5% and 4.7%, respectively, for fiscals 2022 and 2021) given the asset-side focus.

 

Between fiscals 2019 and 2022, the overall earnings were also constrained by elevated credit cost as the bank made higher provisioning and write-offs to manage the impact of the pandemic as well as the stress in the legacy infrastructure finance portfolio. However, credit costs was 0.85% in first quarter of fiscal 2024 against 0.8% in fiscal 2023 (1.8% in fiscal 2022) as lingering asset quality challenges have been surmounted to a large extent. Stage III Provision coverage ratio was 68% as on June 30, 2023, against 66.4% as on March 31, 2023 (59.5% as on March 31, 2022), was also adequate and continues to support the credit risk profile from potential credit losses. Including technical writeoffs, provision coverage was 83.1% as on June 30, 2023, against 80.3% as on March 31, 2023 (70.3% as on March 31, 2022).

 

CRISIL Ratings expects overall profitability of the bank to benefit from increasing proportion of the relatively higher-yielding retail advances, reducing reliance on high-cost wholesale borrowings, operating efficiency kicking in with scale up and incremental credit cost remaining range bound. As the business scales up, the bank’s ability to sustain improvement in profitability will remain a key monitorable.

Liquidity: Superior

Liquidity coverage ratio was 125.6% (as against a stipulated requirement of 100%) for the quarter ended June 30, 2023. Furthermore, excess statutory liquidity was Rs 9739 crore as on June 30, , 2023, forming around 5.48% of total net demand and time liabilities on same day. Liquidity also benefits from access to systemic funding sources such as the liquidity adjustment facility from the Reserve Bank of India (RBI), call money market, and refinance limits from sources such as Small Industries Development Bank of India and National Bank for Agriculture and Rural Development.

 

ESG:

The environment, social and governance (ESG) profile of IDFC FIRST supports its credit risk profile.

 

The ESG profile for the financial sector entities typically factors in governance as a key differentiator between individual banks. The sector has reasonable social impact because of its substantial employee and customer base and can play a key role in promoting financial inclusion. While the sector does not have a direct adverse environmental impact, the lending decisions may have a bearing on the environment.

 

IDFC FIRST has an ongoing focus on strengthening various aspects of its ESG profile.

The key ESG highlights are as follows:

 

  • The bank follows the Equator Principles, an internationally accepted credit risk management framework for identifying, assessing, and managing environmental and social risk in project finance.
  • The bank targets its energy mix to comprise 20% of renewable energy by 2025 for large offices and targets 10% of finance for green energy projects (wholesale) by 2027.
  • As part of social objective, the bank financing promotes financial inclusion. In the rural lending portfolio, 60% of borrowers are female.
  • The bank is also aligning its ESG governance framework to the global Task Force on Climate-Related Financial Disclosures (TCFD) framework.
  • 60% of the board members are independent directors. A dedicated investor grievance redressal mechanism is in place and the disclosures put out by it are extensive.

 

There is growing importance of ESG among investors and lenders. The commitment of IDFC FIRST to ESG will play a key role in enhancing stakeholder confidence, given the participation of foreign portfolio investors in shareholding of the bank and access to capital markets.

Outlook: Stable

CRISIL Ratings believes IDFC FIRST will maintain its capitalisation at healthy levels while growing its retail asset portfolio and strengthening its liability franchise.

Rating Sensitivity factors

Upward factors:

  • Substantial and sustained improvement in market position, along with build-up of retail liabilities
  • Capital position remaining strong with CET1 ratio (including CCB) remaining above 13% on a sustained basis
  • Asset quality and profitability remaining above average on a steady-state basis

 

Downward factors:

  • Deterioration in asset quality with GNPAs increasing beyond 6%, leading to significant weakening in profitability and capitalisation
  • Inability to sustain the ramp-up in CASA and retail deposit base

About the Company

IDFC FIRST came into effect on December 18, 2018, after the merger of IDFC Bank Ltd (IDFC Bank) and Capital First Ltd (CFL).

 

IDFC Bank was initially established as IDFC Ltd in 1994 to facilitate infrastructure financing in the country. In 2014, IDFC Ltd got a banking license from the RBI and IDFC Bank launched operations on October 1, 2015. Post the conversion to a bank, all the lending business of IDFC Ltd was transferred to IDFC Bank.

 

Mr V Vaidyanathan started CFL in 2012 after acquisition of an existing non-banking financial company (NBFC), through management buyout (MBO) with equity backing from Warburg Pincus. Prior to the MBO, the NBFC was primarily engaged in corporate lending while post the MBO, it transformed into a retail lender with focus on consumer and small and medium enterprise segments. The MBO turned around the company from losses of Rs 32 crore in fiscal 2009 to a net profit of Rs 328 crore in fiscal 2018. The assets under management (AUM) of CFL grew at compound annual growth rate (CAGR) of 29% over the five years till March 2018. Over the same time frame, the profits grew at a five-year CAGR of 56%.

 

Post the merger of IDFC Bank with CFL and its subsidiaries, the merged entity was renamed as IDFC FIRST. The bank has three business verticals: corporate banking, consumer banking and rural banking. It had a network of 576 branches as on December 31, 2020. Additionally, it has 271 business correspondent branches and 560 ATMs including recyclers across the country. Prior to the merger, IDFC Bank had loan book of Rs 75,337 crore (as on September 30, 2018) largely concentrated towards infrastructure and wholesale lending. On the other hand, CFL’s AUM (Rs 32,622 crore on the same date) was primarily retail, focused on small entrepreneurs and the consumer segment. On merger, the merged entity had AUM of Rs 1,04,660 crore as on December 31, 2018. In the initial few quarters post the merger, IDFC FIRST proactively recognised and provided for stressed assets as well as invested in expanding its reach for building a strong retail franchise.

 

For fiscal 2023, IDFC FIRST reported profit after tax (PAT) of Rs 2,485 crore and total income (net of interest expense) of Rs 17,104 crore, against Rs 132 crore and Rs 12,880 crore, respectively, for the corresponding period of the previous fiscal.

 

For the first quarter of fiscal 2024, the bank reported PAT of Rs 731 crore on total income of Rs 5110 crore, against Rs 485 crore and Rs 3607 crore respectively, for the corresponding period of the previous fiscal.

Key Financial Indicators: Consolidated

As on/for the period ended

Unit

Jun’23

Mar’23

Mar’22

Total assets

Rs crore

2,48,858

2,39,882

1,90,146

Total income (net of interest expense)

Rs crore

5110

17,104

12,880

Pre-provisioning operating profit

Rs crore

1472

4,996

3,284

PAT

Rs crore

732

2,485

132

Return on assets

%

1.3

1.2

0.1

 

Key financial indicators: Standalone

As on/for the period ended

Unit

Jun’23

Mar’23

Mar’22

GNPAs

%

2.17

2.51

3.70

PAT

Rs crore

765

2437

145

Overall capital adequacy ratio 

%

16.96

16.82

16.74

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

NA

Tier II bonds (under Basel III)*

NA

NA

NA

3,000

Complex

CRISIL AA+/Stable

INE092T08EZ3

Tier II bonds (under Basel III)

1-Dec-22

8.7

1-Dec-32

1500

Complex

CRISIL AA+/Stable

INE092T08EY6 

Tier II bonds (under Basel III)

8-Feb-22

8.42

8-Feb-32

1500

Complex

CRISIL AA+/Stable

INE092T08FA3 Tier II bonds (under Basel III) 27-Jun-23 8.4 27-Jun-33 1500 Complex CRISIL AA+/Stable

NA

Tier II bonds (under Basel III)*

NA

NA

NA

500

Complex

CRISIL AA+/Stable

NA

Certificate of deposits programme

NA

NA

7-365 Days

45,000

Simple

CRISIL A1+

*Yet to be issued

Annexure - List of Entities Consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

IDFC FIRST Bharat Ltd (formerly, IDFC Bharat Ltd)

Full

Subsidiary

Millennium City Expressways Pvt Ltd

Full

Associate

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
Certificate of Deposits ST 45000.0 CRISIL A1+ 10-07-23 CRISIL A1+ 01-11-22 CRISIL A1+ 30-04-21 CRISIL A1+ 09-04-20 CRISIL A1+ --
      -- 02-06-23 CRISIL A1+ 29-06-22 CRISIL A1+   -- 18-02-20 CRISIL A1+ --
      --   -- 07-04-22 CRISIL A1+   -- 07-02-20 CRISIL A1+ --
Fixed Deposits LT   --   -- 29-06-22 Withdrawn 30-04-21 F AAA/Stable 09-04-20 F AAA/Stable --
      --   -- 07-04-22 F AAA/Stable   --   -- --
Tier II Bonds (Under Basel III) LT 8000.0 CRISIL AA+/Stable 10-07-23 CRISIL AA+/Stable 01-11-22 CRISIL AA/Positive 30-04-21 CRISIL AA/Stable 09-04-20 CRISIL AA/Stable --
      -- 02-06-23 CRISIL AA+/Stable 29-06-22 CRISIL AA/Stable   -- 18-02-20 CRISIL AA/Stable --
      --   -- 07-04-22 CRISIL AA/Stable   --   -- --
All amounts are in Rs.Cr.

  

Criteria Details
Links to related criteria
Rating Criteria for Banks and Financial Institutions
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation
Rating criteria for Basel III - compliant non-equity capital instruments

Media Relations
Analytical Contacts
Customer Service Helpdesk

Aveek Datta
Media Relations
CRISIL Limited
M: +91 99204 93912
B: +91 22 3342 3000
AVEEK.DATTA@crisil.com

Prakruti Jani
Media Relations
CRISIL Limited
M: +91 98678 68976
B: +91 22 3342 3000
PRAKRUTI.JANI@crisil.com

Rutuja Gaikwad 
Media Relations
CRISIL Limited
B: +91 22 3342 3000
Rutuja.Gaikwad@ext-crisil.com


Ajit Velonie
Senior Director
CRISIL Ratings Limited
B:+91 22 3342 3000
ajit.velonie@crisil.com


Subha Sri Narayanan
Director
CRISIL Ratings Limited
B:+91 22 3342 3000
subhasri.narayanan@crisil.com


Leena Gupta
Manager
CRISIL Ratings Limited
B:+91 22 3342 3000
Leena.Gupta@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com


 

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

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.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK


CRISIL PRIVACY NOTICE
 
CRISIL respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL's privacy policy please visit www.crisil.com.



DISCLAIMER

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.

We are not aware that any user intends to rely on the report or of the manner in which a user intends to use the report. In preparing our report we have not taken into consideration the objectives or particular needs of any particular user. It is made abundantly clear that the report is not intended to and does not constitute an investment advice. The report is not an offer to sell or an offer to purchase or subscribe for any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The report should not be the sole or primary basis for any investment decision within the meaning of any law or regulation (including the laws and regulations applicable in the US).

Ratings from CRISIL Ratings are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold or sell any securities/instruments or to make any investment decisions. Any opinions expressed here are in good faith, are subject to change without notice, and are only current as of the stated date of their issue. CRISIL Ratings assumes no obligation to update its opinions following publication in any form or format although CRISIL Ratings may disseminate its opinions and analysis. The rating contained in the report is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment or other business decisions. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way. CRISIL Ratings or its associates may have other commercial transactions with the entity to which the report pertains.

Neither CRISIL Ratings nor its affiliates, third-party providers, as well as their directors, officers, shareholders, employees or agents (collectively, 'CRISIL Ratings Parties') guarantee the accuracy, completeness or adequacy of the report, and no CRISIL Ratings Party shall have any liability for any errors, omissions or interruptions therein, regardless of the cause, or for the results obtained from the use of any part of the report. EACH CRISIL RATINGS PARTY DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall any CRISIL Ratings Party be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors. Public ratings and analysis by CRISIL Ratings, as are required to be disclosed under the regulations of the Securities and Exchange Board of India (and other applicable regulations, if any), are made available on its website, www.crisilratings.com (free of charge). Reports with more detail and additional information may be available for subscription at a fee - more details about ratings by CRISIL Ratings are available here: www.crisilratings.com.

CRISIL Ratings and its affiliates do not act as a fiduciary. While CRISIL Ratings has obtained information from sources it believes to be reliable, CRISIL Ratings does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and/or relies on in its reports. CRISIL Ratings has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For details please refer to:
https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html.

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.

This report should not be reproduced or redistributed to any other person or in any form without prior written consent from CRISIL Ratings.

All rights reserved @ CRISIL Ratings Limited. CRISIL Ratings is a wholly owned subsidiary of CRISIL Limited.

 

 

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