CRISIL reaffirms 'A1+' rating to Axis Bank's Rs60,000 crore certificate of deposits; stock marginally up

8 Apr 2022 , 11:02 AM

Axis Bank Limited informed that the rating agency CRISIL Ratings Limited has reaffirmed the rating for various debt instruments of the bank.
It has reaffirmed the rating at ‘CRISIL AA+/Stable’ for Rs2,500 crore Tier I Bonds (Under Basel III), and Rs3,500 crore Tier I Bonds (Under Basel III).

Whereas Rs60,000 crore certificate of deposits’ ratings are reaffirmed at ‘CRISIL A1+’.

The rating agency also reviewed Rs850 crore Tier II Bonds (Under Basel III), Rs2,500 crore Tier II Bonds (Under Basel III), Rs5,000 crore Tier II Bonds (Under Basel III), Rs2,000 crore Tier II Bonds (Under Basel III), Rs4,000 crore Tier II Bonds (Under Basel III). All of these instruments’ ratings were reaffirmed at ‘CRISIL AAA/Stable’.

Bank’s Infrastructure bonds of all categories have been rated as ‘CRISIL AAA/Stable’.

On March 30, 2022, Axis Bank and Citibank has approved the acquisition of Citibank’s consumer businesses (credit cards, retail banking, wealth management, asset backed financing and consumer loans) in India by Axis Bank. Axis Bank will pay a consideration of up to Rs12,325 crore to Citibank for this transaction.

CRISIL Ratings has combined the business and financial risk profiles of Axis Bank and its subsidiaries because of majority shareholding, business, and financial linkages, and shared brand.

Axis Bank is currently trading at Rs793.30 up by Rs1.25 or 0.16% from its previous closing of Rs792.05 on the BSE. The scrip opened at Rs794 and has touched day’s high and low of Rs798.65 and Rs789.30 respectively.