IDFC First Bank Limited has informed the Exchange about Credit Rating
IDFCFIRSTB · price
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Awaiting price reaction for this filing.
ICRA has reaffirmed its [ICRA]AA+/Stable rating on IDFC First Bank's Basel III Tier II Bonds worth ₹3,000 crore and other existing long-term instruments. The agency also withdrew the rating on matured non-convertible debentures (NCDs) of ₹8,084 crore that have been fully redeemed and carry no outstanding amount. The total rated amount has declined from ₹24,487.70 crore to ₹16,403.70 crore due to this withdrawal. The rating rationale cites comfortable capitalisation (CET-I at 13.17%, CRAR at 15.48% as of March 2025) and healthy deposit growth of ~26% to ₹2.52 lakh crore in FY2025. However, concerns remain around asset quality due to stress in the microfinance (MFI) segment, which pushed credit costs to 2.6% in FY2025 from 1.4% in FY2024. Profitability moderated with PAT falling to ₹1,525 crore in FY2025 from ₹2,957 crore in FY2024, and return on assets declining from 1.10% to 0.48%.
The rating reaffirmation signals that IDFC First Bank's credit quality remains stable, which is neutral for the stock. However, weaker FY2025 profitability and elevated credit costs from MFI stress could keep the stock under pressure until improvements materialize in H2 FY2026.