Credit Rating re-affirmed by ICRA
IDFCFIRSTB · price
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ICRA has re-affirmed IDFC First Bank's credit rating at ICRA AA+/Stable for debt instruments worth ₹12,520 crore, comprising Basel III Tier II Bonds (₹3,000 crore) and Infrastructure Bonds (₹9,520 crore). The rating agency also withdrew ratings on matured NCDs worth ₹3,883.70 crore as these were fully redeemed with no outstanding amount. The reaffirmation reflects the bank's comfortable capital position (CET I ratio of 13.73% and CRAR of 15.60% as of March 2026) supported by a ₹7,500 crore capital raise in FY2026. Asset quality improved with gross fresh slippage rate declining to 3.7% from 4.2% and gross NPAs at 1.61%. However, profitability remains moderate with RoA at 0.44% (impacted by a ₹646 crore fraud-related one-off cost), though adjusting for this, RoA would have been 0.57%.
The re-affirmation of AA+ rating with Stable outlook signals continued creditworthiness and stable debt servicing ability. This is positive for bondholders and investors as it indicates the bank maintains sufficient capital cushions and improving asset quality despite moderate profitability. The full redemption of old NCDs reduces refinancing risk.