Crisil reaffirms IDFC First Bank ratings, citing strong capitalization

Crisil Ratings has reaffirmed its ‘CRISIL AAA/Stable’ rating for fixed deposits amounting to ₹1,60,000 crore, ‘CRISIL A1+’ for certificate of deposits worth ₹45,000 crore, and ‘Crisil AA+/Stable’ for Tier II bonds (under Basel III) totaling ₹8,000 crore for IDFC First Bank Limited. This reaffirmation is driven by a steady scale-up of business, a strengthening retail asset base and liability franchise, and healthy capitalization.

The bank's fixed deposits, including compound interest, grew 21.3% to ₹1,29,640 crore as of June 30, 2025. Funded assets increased 20% year-on-year to ₹2,41,926 crore by March 31, 2025, with retail, rural, and MSME funded assets comprising 82% of the total. Overall deposits further grew to ₹2,64,971 crore by June 30, 2025, with CASA contributing 48% of total deposits.

Despite healthy capitalization, with a Tier 1 CAR of 12.8% and an overall CAR of 15.0% as of June 30, 2025, profitability remains modest. The bank reported a consolidated PAT of ₹1,490 crore for fiscal 2025 with a return on average assets (ROAA) of 0.5%, down from 1.1% in fiscal 2024. Gross non-performing assets (GNPAs) inched up to 1.97% in Q1 2026 from 1.87% on March 31, 2025, due to elevated slippages in the microfinance portfolio.