ICRA revises outlook to ‘Positive' on IDBI Bank's facilities worth Rs30,679 crore; stock zooms ~2%

27 Sep 2022 , 09:20 AM

IDBI Bank Limited informed that ICRA has revised the company’s outlook to ‘Positive’ from ‘Stable’. The rating agency has reaffirmed the long-term ratings at `[ICRA]A+’. The company’s short-term issuer rating is reaffirmed at ‘[ICRA]A1+’.

ICRA has reviewed other long-term facilities worth Rs30,678.83 crore, and the Certificates of Deposit Programme worth Rs35,000 crore.

IDBI Bank Limited’s rating outlook has been revised to reflect the company’s sustained improvement in profitability and capitalization. Given the strong provision coverage on non-performing assets (NPA), this trend is anticipated to continue, resulting in a decrease in the net NPA (NNPA) level.

This has also resulted in a satisfactory solvency profile. The recent increase in capital buffers was driven mostly by a stronger profitability profile and modest book growth, said ICRA in its rationale.

Given the stated desire of the Life Insurance Corporation of India (LIC) and the Government of India (GoI) to sell down/divest their participation in the bank, the ratings are based on the bank’s standalone credit profile.

At around 9.23 AM, IDBI Bank was trading at Rs41.10 up by 1.99% from its previous closing of Rs40.30 on the BSE. The scrip opened at Rs40.50 and touched intraday high and low of Rs41.10 and Rs40.50 respectively.

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