IDFC FIRST Bank's debt instruments reaffirmed at 'IND AA+/Stable'

IDFC FIRST Bank announced that India Ratings & Research ("Ind-Ra") has reaffirmed its 'IND AA+/Stable' rating and outlook for the bank's debt instruments. This includes Basel III Tier 2 Bonds, Infrastructure Bonds, and Non-Convertible Debt Instruments, totaling ₹17,928 crore.

The affirmation reflects IDFC FIRST Bank's continued franchise expansion, experienced management, stable liability franchise, diversified product portfolio, and improved capital buffers. The bank's total assets stood at INR382.2 bn in 1HFY26, with a total equity base of INR46.49 bn. Its Tier 1 ratio improved to 14.75% in 2QFY26 from 13.2% in FY25.

However, the ratings remain constrained by higher operating expenses and credit costs, which have impacted internal accruals compared to higher-rated peers. The bank's gross non-performing assets (NPAs) were flattish at 1.86% in 1HFY26, with a provision coverage ratio of 72.2%. Liquidity remained adequate, with a quarterly liquidity coverage ratio of 115% in 2QFY26.