IDFC First Bank Limited — Credit Ratings, 17-05-2025: Credit Rating- New

ICRA has reaffirmed the [ICRA]AA+ (Stable) rating for IDFC FIRST Bank’s Basel III Tier II Bonds of ₹3,000 Cr and other long-term instruments. This reflects the bank’s comfortable capitalisation with a CET-I ratio of 13.17% and CRAR of 15.48% as of March 2025. Despite moderate profitability pressures from elevated credit costs linked to stress in the microfinance segment, the bank’s diversified asset base, steady deposit growth, and planned ₹7,500 Cr capital raise underpin a stable credit profile. The rating supports sustained investor confidence and favorable borrowing costs, backed by strong liquidity and capital buffers. Close monitoring of asset quality and profitability will continue.