CARE revises rating of IDFC FIRST Bank Limited

CARE Ratings have revised the rating of Bank's Long-Term Debt Instruments (Long-Term Bank Loan facilities and Non-Convertible Debentures) from CARE AA+ (Negative) to CARE AA (Stable). Further, the rating of Short-term Debt Instruments is withdrawn due to NIL outstanding.

The revision of rating assigned to long term debt instruments of IDFC FIRST Bank Limited (IDFC FIRST) takes into account further moderation in profitability during FY20. Further, it takes into account relatively weaker profitability and higher cost of funding compared to peers. The rating continues to factor in the experienced management of the bank, comfortable liquidity profile, adequate capitalization, comfortable asset quality albeit some moderation and diversified loan book with increasing proportion of retail advances and retail liabilities. The rating is, however, constrained by bank's relatively lower CASA proportion to total liability compared to peers; the same however is gradually ramping up with good growth over a short period of time and bank's moderate profitability. The rating also factors presence in high yielding retail segment which may be impacted by current economic slowdown.

Shares of IDFC First Bank Ltd was last trading in BSE at Rs.31.5 as compared to the previous close of Rs. 31.6. The total number of shares traded during the day was 1723322 in over 21306 trades.

The stock hit an intraday high of Rs. 31.9 and intraday low of 31.15. The net turnover during the day was Rs. 54432153.

Source : Equity Bulls

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