IDFC FIRST Bank NCDs reaffirm 'BWR AA+ / Stable' rating

IDFC FIRST Bank's outstanding Non-Convertible Debentures (NCDs), totaling INR 621.00 crore, have been reaffirmed at 'BWR AA+ / Stable' by Brickwork Ratings. This rating, initially reaffirmed with a stable outlook in October 2024, reflects the bank's sustained performance. The NCDs were reduced from INR 738.60 crore due to redemptions upon maturity.

The reaffirmation is based on the bank's audited financials up to FY25 and performance in Q1FY26. Key factors include business growth to INR 5.10 lakh crore as of June 30, 2025, with gross funded assets of INR 2.53 lakh crore and total customer deposits of INR 2.57 lakh crore. Retail deposits constitute 80% of customer deposits, and the CASA ratio improved to 48.0%. Capital adequacy remains comfortable with a total CRAR of 15.01% and CET-1 ratio of 12.80% as of June 30, 2025. The bank also announced a fresh equity capital raise of INR 7,500 crore.

Despite a marginal deterioration in Gross Non-Performing Assets (GNPA) to 1.97% and Net Non-Performing Assets (NNPA) to 0.55% as of June FY25, primarily due to slippages in the microfinance book, the bank maintains adequate liquidity with a liquidity coverage ratio of 118%. Net profit for Q1 FY26 was INR 463 crore, with Return on Assets at 0.53% and Return on Equity at 4.83%.