IDFC First Bank Debt Ratings Affirmed by Ind-Ra

New Delhi, Dec 12 (PTI) India Ratings and Research (Ind-Ra) has affirmed IDFC First Bank's debt instruments ratings at 'IND AA+' with stable outlook, the private sector lender said on Tuesday.

India Ratings & Research (Ind-Ra) has re-affirmed the rating/outlook of bank's debt instruments (Basel-III Tier-2 Bonds, Infrastructure Bonds and Non-Convertible Debt Instruments) amounting to Rs 29,148 crore at 'IND AA+/Stable', the lender said in a stock exchange filing.

Further, Ind-Ra has also assigned 'IND AA+' with stable outlook to Basel III Tier 2 Bonds amounting to Rs 3,000 crore.

On rating sensitivities about the bank, Ind-Ra said a substantial improvement in the franchise size and scale, large granular retail funding in line with higher rated banks, consistent profitability buffers, maintaining stable through-the-cycle asset quality and stronger capital buffers could be key positive rating drivers.

It also said events that could individually or collectively lead to a negative action include, 'higher-than-expected credit costs or a weakening of the provision cover or diluted tangible capitalisation buffers' and 'a material decline in the pace of granularisation of deposits in its funding mix'.

IDFC First Bank had reported a 35 per cent rise in net profit at Rs 751 crore in the second quarter ended September driven by operating income.

The lender had posted a net profit of Rs 556 crore in the year-ago period.

Bank's shares ended at Rs 86.87 a piece on the BSE, down 0.53 per cent over the previous close.