Rating Rationale
February 03, 2017 | Mumbai
Innovation Trust XXIV Sept 2016
(Originator: Indiabulls Housing Finance Limited)
'CRISIL AAA (SO)' Converted from Provisional Rating to Final Rating for Series A PTCs 
Rating Action
Transaction Details Amount Rated
(Rs Crore)
Outstanding Amount (Rs Crore) Original Tenure (Months)# Balance Tenure (Months)# Credit Collateral^
(Rs Crore)
Ratings/ Credit Opinion& Rating Action
Innovation Trust XXIV Sept 2016 Series A PTCs 135.98 126.52$ 168 165 17.49 CRISIL AAA (SO) Converted from Provisional Rating to Final Rating
1 crore = 10 million
#Indicates door-to-door tenure between issuance date and legal final maturity date. Actual tenure will depend on level of prepayment in pool, exercise of clean-up call option and extent of shortfall.
& Series A PTC holders are entitled to receive timely interest and timely principal
^Additionally scheduled excess interest spread (EIS) amounting to Rs.41.58 crore (assuming zero prepayments) also provides credit support to PTCs
$Data as of January 2017 payouts
Detailed Rationale

CRISIL has converted the provisional ratings assigned to Series A PTCs to final ratings of 'CRISIL AAA (SO)'. CRISIL had assigned its 'Provisional CRISIL AAA (SO)' rating Series A pass-through certificates (PTCs) on October 05, 2016, issued by Innovation Trust XXIV Sept 2016, a trust settled by IDBI Trusteeship Services Ltd. The pool is backed by loan against property (LAP) receivables originated by Indiabulls Housing Finance Limited (IBHFL; 'CRISIL AA+/Stable/CRISIL A1+'). CRISIL has received the final legal documents executed for the transaction. The executed documents are in line with the transaction terms at the time of provisional rating. Hence, CRISIL has converted the provisional rating to final rating.
Please click on the link below for detailed information on CRISIL's policy on provisional rating: Revision in CRISIL policy for assigning 'provisional' ratings
As required, CRISIL has received the following final legal documents:

  • Deed of Assignment
  • Trust Deed 
  • Collection & Processing Agent's and Security Agent's Agreement
  • Cash Collateral Agreement
  • Cash Collateral PoA / Power of Attorney
  • Information Memorandum
  • Legal Opinion

Key rating drivers and description:
Supporting Factors

  • Credit support available in the structure: Credit collateral of Rs 17.49 crore (12.9% of the pool principal) provide credit support to the PTCs. The PTCs also benefit from scheduled EIS amounting to Rs. 41.58 crore (30.6% of pool principal)

Constraining Factors

  • Interest rate risk: The investor and pool yields are linked to different benchmark rates, thereby exposing the PTCs to basis risk
  • Customer concentration: The top 10 customers in the pool account for 14.2% of pool principal

CRISIL has adequately factored these aspects in its rating analysis
About the Pool
The pool is backed by loan against property receivables, with the underlying borrowers all self-employed. At the time of securitisation, the pool had a weighted average net seasoning of 15.3 months and all the contracts were current on loan repayment. The pool was geographically diversified, with moderate customer concentration of 14.2% of pool principal for the top 10 contracts, at the time of securitisation. Also, average ticket size of the pool is Rs. 60 lakhs and weighted average LTV at the time of securitisation was 50.9%
About the Originator
IBHFL (Rated 'CRISIL AA+/Stable/CRISIL A1+'), established in January 2000, is a systemically important NBFC. The company is focused on secured asset classes, such as mortgages and commercial credit loans. IBHFL continues to focus on the mortgage finance segment and is the third-largest housing finance company by assets under management (AUM), with an AUM (Home Loans) of Rs. 40,833 crore as on September 2016. It is also one of the prominent players in the LAP (Loan against property) segment, with an AUM of Rs. 18,229 crore as on September 2016. IBHFL, registered with National Housing Bank (NHB) as a Housing Finance Company, follows the 90+ days for NPA recognition, as prescribed by NHB.
For the half-year ended September 30, 2016, IBHFL reported a profit after tax (PAT) of Rs 1314 crore on a total income of Rs 5472 crore, as against Rs 1067 crore and Rs 4271 crore, respectively, reported for the corresponding period of the previous year. For fiscal 2016, PAT was Rs 2345 crore on total income of Rs 9226 crore, against Rs 1901 crore and Rs 7253 crore, respectively, for fiscal 2015.
Past Rated Pools
CRISIL has outstanding rating on seven transactions originated by IBHFL. The collection efficiency for all the pools has remained robust till date. CRISIL is receiving monthly performance reports pertaining to all CRISIL-rated IBHFL originated securitisation transactions.

Note on complexity levels of the rated instrument:
CRISIL complexity levels are assigned to various types of financial instruments. The CRISIL complexity levels are available on www.crisil.com/complexity-levels. Users are advised to refer to the CRISIL complexity levels for instruments that they consider for investment. Users may also call the Customer Service Helpdesk with queries on specific instruments.
Annexure - Details of Instrument(s)
Type of Instrument Rated Amount (Rs Crore) Date of Allotment  
Maturity date*
Coupon Rate (%) Outstanding
Credit cum liquidity Enhancement$ (Rs Crore)
Series A PTCs 135.98 30-Sep-16 18-Oct-30 8.2%
*Indicative maturity date
^Linked to MCLR
$Additionally scheduled excess interest spread (EIS) amounting to Rs.41.58 crore (assuming zero prepayments) also provides credit support to PTCs
Annexure - Rating History for last 3 Years
  Current 2017 (History) 2016  2015  2014   
Instrument Type Quantum Rating Date Rating Date Rating Date Rating Date Rating Rating
Series A PTCs  LT  135.98 No Rating Change    No Rating Change   07-10-16  Provisional CRISIL AAA (SO)   --   -- --
Links to related criteria
CRISILs rating methodology for RMBS transactions
Evaluating risks in securitisation transactions - A primer
Legal analysis in structured finance transactions

For further information contact:
Media Relations
Analytical Contacts
Customer Service Helpdesk
Saman Khan
Media Relations
CRISIL Limited
D: +91 22 3342 3895
B: +91 22 3342 3000

Tanuja Abhinandan
Media Relations
CRISIL Limited
D: +91 22 3342 1818
B: +91 22 3342 3000

Jyoti Parmar
Media Relations
CRISIL Limited
D: +91 22 3342 1835
B: +91 22 3342 3000

Krishnan Sitaraman
Senior Director - CRISIL Ratings
CRISIL Limited
D:+91 22 3342 8070

Ajit Velonie
Director - CRISIL Ratings
CRISIL Limited
D:+91 22 4097 8209

Siddharth Lal
Rating Analyst - CRISIL Ratings
CRISIL Limited
D:+91 22 4097 8223
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
For Analytical queries:


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. However, CRISIL alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites, portals etc.

About CRISIL Limited

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. We are India's leading ratings agency. We are also the foremost provider of high-end research to the world's largest banks and leading corporations.

CRISIL 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 


About CRISIL Ratings
CRISIL Ratings is part of CRISIL Limited (“CRISIL”). We pioneered the concept of credit rating in India in 1987. CRISIL is registered in India as a credit rating agency with the Securities and Exchange Board of India (“SEBI”). With a tradition of independence, analytical rigour and innovation, CRISIL sets 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 24,500 large and mid-scale corporates and financial institutions. CRISIL has also instituted several innovations in India in the rating business, including rating municipal bonds, partially guaranteed instruments and microfinance institutions. We also pioneered a globally unique rating service for Micro, Small and Medium Enterprises (MSMEs) and significantly extended the accessibility to rating services to a wider market. Over 95,000 MSMEs have been rated by us.


CRISIL respects your privacy. We 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 and other parts of S&P Global Inc. and its subsidiaries (collectively, the “Company) you may find of interest.

For further information, or to let us know your preferences with respect to receiving marketing materials, please visit www.crisil.com/privacy. You can view the Company’s Customer Privacy at https://www.spglobal.com/privacy

Last updated: April 2016


This disclaimer forms part of and applies to each credit rating report and/or credit rating rationale that we provide (each a “Report”). For the avoidance of 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 providing or intending to provide any services in jurisdictions where CRISIL 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 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 or otherwise 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 Rating 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 assumes no obligation to update its opinions following publication in any form or format although CRISIL may disseminate its opinions and analysis. CRISIL 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.

Neither CRISIL nor its affiliates, third party providers, as well as their directors, officers, shareholders, employees or agents (collectively, “CRISIL Parties”) guarantee the accuracy, completeness or adequacy of the Report, and no CRISIL 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 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 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. CRISIL’s public ratings and analysis 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 web sites, www.crisil.com (free of charge). Reports with more detail and additional information may be available for subscription at a fee – more details about CRISIL ratings are available here: www.crisilratings.com.

CRISIL and its affiliates do not act as a fiduciary. While CRISIL has obtained information from sources it believes to be reliable, CRISIL does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives and / or relies in its Reports. CRISIL keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of the respective activity. As a result, certain business units of CRISIL may have information that is not available to other CRISIL business units. CRISIL has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. CRISIL has in place a ratings code of conduct and policies for analytical firewalls and for managing conflict of interest. For details please refer to: http://www.crisil.com/ratings/highlightedpolicy.html

CRISIL’s rating criteria are generally available without charge to the public on the CRISIL public web site, www.crisil.com. For latest rating information on any instrument of any company rated by CRISIL you may contact CRISIL RATING 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 a prior written consent of CRISIL.

All rights reserved @ CRISIL