ICRA given stable rating to IDFC FIRST Bank,read detailed story here

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ICRA given stable rating to IDFC FIRST Bank,read detailed story here

 

• The deposit base of the Bank crosses Rs. 2.01 lakh crore in FY2024
• The bank maintains high level of retail deposits
Leading rating agency ICRA Ltd (ICRA) has assigned ICRA AA+/Stable rating to the Rs 3,000-crore TIER-II (under Basel-III) bonds of IDFC FIRST Bank. The rating agency has also reaffirmed ICRA AA+/Stable rating for the existing Long-Term instruments.
ICRA has also withdrawn the rating outstanding on the matured non-convertible debentures (NCDs) amounting to Rs 3,815 crore as these have been fully redeemed, the private sector lender said.

The Bank has maintained its granular retail deposits at a higher level during the recently concluded financial year. The overall deposit base of the Bank expanded by ~38.7 per cent to Rs. 2.01 lakh crore in 2023-24 (FY2024) with retail term deposits growing by two per cent to 78 per cent of the total customer deposits, and despite the share of retail Current Account and Savings Account (CASA) easing 2.6 per cent during the year to 47.2 per cent.
Though the deposit growth was supported by a relatively higher interest rate proposition compared to larger private sector banks, these rates remain comparable to peer mid-sized banks.
The Bank’s high-cost legacy long-term borrowings were down to 4.7 per cent of its total borrowings and deposits during the fiscal from 8.8 per cent a year ago, which will further drive up the share of total deposits in total liabilities/resources (excluding net worth).
(EoM)

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