Credit Rating re-affirmed by ICRA
Awaiting price reaction for this filing.
ICRA has reaffirmed its AA+/Stable rating on IDFC FIRST Bank's Rs 3,000 crore Basel III Tier II Bonds and all existing long-term instruments, including Rs 9,520 crore infrastructure bonds and Rs 3,883.70 crore NCDs. Separately, ICRA withdrew the rating on Rs 8,084 crore of NCDs that have matured and been fully redeemed with no outstanding amount. The bank maintains healthy capitalisation with CET-I at 13.17% and CRAR at 15.48% as of March 2025, and recently raised Rs 3,200 crore in July 2024 with another Rs 7,500 crore preferential allotment approved in April 2025. Deposit base grew 26% to Rs 2.52 lakh crore in FY2025, though profitability moderated sharply with PAT falling from Rs 2,957 crore to Rs 1,525 crore due to higher credit costs from MFI segment stress and elevated operating expenses.
Reaffirmation of the AA+ rating signals continued confidence in the bank's credit profile and stable outlook, which is positive for bondholders and lenders. However, the rationale flags weak profitability, high cost-to-income ratio (72%), and MFI asset quality stress as monitorable concerns that could pressure the stock in the near term.