Rating Rationale
March 15, 2024 | Mumbai
Ugro Capital Limited
Long-term rating upgraded to 'CRISIL A/CRISIL PPMLD A/Stable'; Short-term rating reaffirmed; Tier II Bond Withdrawn
 
Rating Action
Total Bank Loan Facilities RatedRs.1500 Crore
Long Term RatingCRISIL A/Stable (Upgraded from 'CRISIL A-/Positive')
 
Rs.25 Crore (Reduced from Rs.250 Crore) Long Term Principal Protected Market Linked DebenturesCRISIL PPMLD A/Stable (Upgraded from 'CRISIL PPMLD A-/Positive')
Rs.200 Crore Tier II BondCRISIL A/Stable (Upgraded from 'CRISIL A-/Positive'; Rating Withdrawn)
Rs.207.5 Crore (Reduced from Rs.250 Crore) Non Convertible DebenturesCRISIL A/Stable (Upgraded from 'CRISIL A-/Positive')
Rs.200 Crore Commercial PaperCRISIL A1 (Reaffirmed)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has upgraded its rating on the long term bank facilities and debt instruments of UGRO Capital Limited (UGRO) to CRISIL A/CRISIL PPMLD A/Stable from CRISIL A-/CRISIL PPMLD A-/Positive. CRISIL Ratings has also reaffirmed its ‘CRISIL A1’ rating on the commercial paper.

 

CRISIL Ratings has withdrawn its rating on Tier II bonds of Rs 200 crore, long-term principal protected market linked debentures of Rs 225 crore and non-convertible debentures of Rs 42.5 crore as these have not been utilised and based on issuer request. The withdrawal (see annexure 'Details of Rating Withdrawn' for details) is in line with the CRISIL Ratings withdrawal policy.

 

The rating upgrade is driven by the company’s demonstrated ability to scale up its franchise business on the back of healthy business prospects and wide operating network, comfortable capitalisation levels and improved diversification in the resource profile. These strengths are offset by improving, yet modest, earnings profile and monitorable asset quality trajectory.

 

UGRO has demonstrated its ability to scale up its assets under management (AUM) to Rs 8,364 crore as on December 31, 2023, from Rs 6,081 crore as on March 31, 2023, supported by healthy business prospects in the micro, small and medium enterprise (MSME) financing segment with growing working capital and ecosystem financing needs and UGRO’s widespread operating network to tap this. Furthermore, UGRO also receives interest from banks for priority sector loans, for which it has entered co-lending/co-origination arrangements with large banks. These form part of UGRO’s off-book portfolio, which comprise 45% of AUM as on December 31, 2023, against 40% as on March 31, 2023 and 16% as on March 31, 2022. Going forward, UGRO is expected to grow by deepening its presence in its existing network while also expanding selectively.

 

UGRO has comfortable capitalisation levels with reported networth of Rs 1,405 crore as on December 31, 2023 (Rs 984 crore as on March 31, 2023), supported by capital infusion of Rs 1,240 crore since inception which includes Rs 340 crore infused in the first quarter of fiscal 2024 from Danish Sustainable Development Goals Investment Fund K/S, which is an arm of the Denmark government along with other large Qualified Institutions. Furthermore, UGRO has been able to improve its funding diversification with increased funding from public sector banks, development financial institutions and financial institutions. However, cost of funds remains relatively higher than its peers. CRISIL Ratings believes comfortable capitalisation levels and improved resource raising ability will support UGRO in meeting its growth objectives going forward.

 

UGRO’s asset quality remains monitorable given the rapid scale-up in the loan book in recent years and limited seasoning. The company’s gross stage III on own book increased to 3.2% (Rs 158.9 crore) as on December 31, 2023, from 2.5% (Rs 95.7 crore) as on March 31, 2023, and 2.3% (Rs 56 crore) as on March 31, 2022. The company’s book has seen write offs of ~1% (Rs 38.5 crore) in the first nine months of fiscal 2024. Furthermore, ~1% (Rs 48.3 crore) of own book is also restructured of which 0.3% is in gross stage III. Going forward, asset quality will remain monitorable.

UGRO’s earnings profile has been sequentially improving,  but remains modest as it is yet to reach steady-state levels due to high operating costs. Operating cost to average managed assets ratio improved to 3.9% for the first nine months of fiscal 2024, from 5% for fiscal 2023 and fiscal 2022, but are expected to remain elevated over the medium term due to the company’s expansion plans. Going forward, scale-led operating efficiencies and moderation in cost of funds will be key to UGRO’s profitability.

Analytical Approach

CRISIL Ratings has analysed the standalone business and financial risk profiles of UGRO.

Key Rating Drivers & Detailed Description

Strengths:

Comfortable capitalisation and improved diversity in resource profile

Capitalisation metrics remain comfortable, supported by large initial capital infusion. Since inception, the company has raised total equity capital of ~Rs 1,240 crore from investors such as Newquest Asia Investments, Clearsky Investment holdings (ADV Partners), Samena Capital and DBZ Cyprus (PAG), most of which was raised upfront, before the commencement of operations in 2019. This includes capital infusion of Rs 340.5 crore, in fiscal 2024, from Danish Sustainable Development Goals Investment Fund K/S, which is an arm of the Government of Denmark, along with other large Qualified Institutions.

 

As on December 31, 2023, reported networth stood at Rs 1,405 crore on reported gearing of 3 times. The company is expected to follow an asset light model over time with a significant proportion of the AUM being off-balance sheet in the form of co-lending or direct assignment transactions, which should reduce the capital requirement for the business. Co-lending/co-origination (with UGRO as a sourcing partner) as a proportion of AUM has increased to 45% as on December 31, 2023, from 16% as on March 31, 2022. While gearing is expected to increase from current levels, it is expected to remain below 4.5 times on steady-state basis.

 

UGRO has been able to improve its funding diversification with increased funding from public sector banks (increased to 29% as on December 31, 2023, from 18% as on December 31, 2022), development financial institutions (19% from 12%) and financial institutions (10% from 6%). CRISIL Ratings believes comfortable capitalisation levels and improved resource raising ability will support UGRO in meeting its growth objectives going forward.

 

Demonstrated ability to scale up with wide operating network

The company started its operations in January 2019 with secured loans against property and unsecured business loans for the MSME segment and has, over time, diversified into other product offerings catering to the overall MSME ecosystem such as supply chain financing and machinery loans. UGRO’s AUM grew 37.5% in the first nine months of fiscal 2024 to Rs 8,364 crore as on December 31, 2023, from Rs 6,081 crore as on March 31, 2023 (Rs 2,969 crore as on March 31, 2022). This is supported by healthy business prospects in MSME financing with growing working capital and ecosystem financing needs and UGRO’s widespread operating network to tap this. The growth has been across product segments and by deepening presence in existing geographies and operating networks. Going forward, the company now plans to geographically expand selectively. 

 

The company operates through three sourcing channels including branch led for secured loans against property and unsecured business loans (67% of AUM as on December 31, 2023). Within this, secured was 35% and unsecured was 32%. Of the unsecured business loans, 23% are backed by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) )/ Credit Guarantee Fund for Micro Units (CGFMU). The second sourcing channel is ecosystem led for supply chain financing and machinery financing (21%) and third is partnership and alliances which is for business loans backed by third party guarantee (11%).

 

UGRO has established a large operating network with 104 branches across 32 states as on December 31, 2023. The secured and unsecured loans are primarily through this channel. Furthermore, the company has partnerships with 70+ anchors and 50+ original equipment manufacturers (OEMs) for its machinery financing product and supply chain financing. The company has also partnered with new age technology companies for the sourcing of loans through a co-lending model, wherein it does not have a physical presence, which adds to UGRO’s sourcing pool.

 

Weaknesses:

Improving profitability but yet to reach steady-state levels

UGRO’s profitability has been improving, but remains modest primarily due to upfronted operating expenditure for branch infrastructure, human capital and technology infrastructure build-up. The company reported profit after tax (PAT) of Rs 86.7 crore for the first nine months of fiscal 2024 against Rs 39.8 crore in fiscal 2023 and Rs 15 crore in fiscal 2022 (Rs 29 crore in fiscal 2021). The company’s return on managed assets (ROMA) was 1.4% for the first nine months of fiscal 2024  (on annualised basis) against 0.8% in fiscal 2023 and 0.6% in fiscal 2022 (1.9% in fiscal 2021).

 

The profitability of the company till fiscal 2021 included benefits derived from deferred tax created on the brought forward business losses of Asia Pragati. From fiscal 2022, the company did not benefit from such tax write-backs and therefore there was a dip in profitability from the levels of fiscal 2021. The company has written off deferred tax assets of Rs 18.3 crore in fiscal 2023 and Rs 12 crore in the first nine months of fiscal 2024, as these have lapsed. Excluding the impact of these deferred tax write offs, ROMA would be 1.6% for the first nine months of fiscal 2024, against 1.2% in fiscal 2023 and 0.6% in fiscal 2022 (0.5% in fiscal 2021). The improvement in ROMA was supported by lower operating expenses and stable credit costs.

 

The company’s pre-provisioning operating profit to average managed assets (PPOP/AMA) improved to 3.2% in the first nine months of fiscal 2024, from 2.8% and 2% in fiscals 2023 and 2022, respectively, driven by improvement in operating expenses to 3.9% (of AMA) in the first nine months of fiscal 2024 from 5% in fiscal 2023. However steady state operating expense will vary based on branch expansion plans. Credit costs remain range-bound at 1.2% in the first nine months of fiscal 2024 against 1.1% and 1.2% in fiscals 2023 and 2022, respectively. With seasoning in portfolio, credit cost could go up.

 

UGRO’s target segment is competitive and there is price sensitivity on the yield side, also its cost of funds is on the higher side. Therefore, UGRO’s ability to raise funds at competitive rates will also drive its profitability going forward.

 

As a result, for improvement from current level, UGRO’s overall profitability trajectory is contingent on steady-state levels of net interest margins (NIMs), operating expenses and credit costs. 

 

Asset quality monitorable with scale up of business and seasoning

UGRO commenced its lending operations in January 2019. The company’s AUM grew substantially to Rs 8,364 crore as on December 31, 2023, from Rs 6,081 crore and Rs 2,696 crore as on March 31, 2023, and March 31, 2022, respectively. Given the rapid scale-up in loan book in recent years and the limited track record, portfolio seasoning remains critical with majority of AUM being disbursed in the past nine months.

 

UGRO’s gross stage III on own book increased to 3.2% (Rs 158.9 crore) as on December 31, 2023, from 2.5% (Rs 95.7 crore) as on March 31, 2023, and 2.3% (Rs 56 crore) as on March 31, 2022. The company’s book has seen write offs of ~1% (Rs 38.5 crore) in the first nine months of fiscal 2024. Furthermore, ~1% (Rs 48.3 crore) of own book is also restructured of which 0.3% is in gross stage III. There is an inch up in early buckets and the ability to manage these will be monitorable.

 

The company has made significant investments in systems and processes for underwriting and risk management practices with a strong focus on technology enabled solutions. Additionally, the company has a well-diversified portfolio (with no state contributing more than 15% of the portfolio) and presence across multiple MSME segments.

 

The ability of the company to manage collections and overall asset quality metrics as the portfolio scales up will remain a key monitorable

Liquidity: Adequate

Asset liability maturity profile as on December 31, 2023, had positive cumulative mismatches in all the buckets upto one year. As on January 31, 2024, the company had liquidity of Rs 680.7 crore with Rs 397  crore in the form of cash and equivalents and liquid investments in fixed deposits and bonds and Rs 283.9 crore of unutilized bank lines, as against total debt repayment Rs 579.7 crore till April 30, 2024.

Outlook: Stable

CRISIL Ratings believes UGRO will maintain its comfortable capitalisation metrics over the medium term.

Rating Sensitivity factors

Upward factors

  • Significant improvement in the market position, while maintaining asset quality
  • Improvement in profitability, with return on assets of around 2% on sustained basis

 

Downward factors

  • Leverage going beyond 6 times on sustained basis
  • Significant and sustained weakening in asset quality leading to adverse impact on profitability

About the Company

UGRO is a non-banking finance company (NBFC) engaged in financing secured and unsecured loans to MSMEs. It was incorporated in 1993 as Chokhani Securities Ltd and was acquired and renamed as UGRO Capital Ltd in 2018 by Mr Shachindra Nath (Executive Chairman and Managing Director) who has over two decades of experience in the financial services industry.

 

The company has been publicly listed on the Bombay Stock Exchange since 1995 and got listed on the National Stock Exchange in August 2021. Mr Nath is supported by seasoned key management personnel each having expertise of over a decade in their respective functional domains.

 

The company commenced operations in January 2019 and had an AUM of Rs 8,364 crore as on December 31, 2023, of which 45% was off book.

Key Financial Indicators

As on/for the period ending

Unit

Dec 23

Mar 23

Mar 22

Total assets

Rs crore

5739

4306

2854

Total assets under management (including off balance sheet)

Rs crore

8364

6081

2969

Total income

Rs crore

751

684

313

Profit before tax

Rs crore

123

84

20.2

Profit after tax

Rs crore

87

40

15

Gross Stage III assets

%

3.2

2.5

2.3

Reported gearing

Times

3.0

3.2

1.9

Return on managed assets

%

1.4

0.8

0.6

Any other information: Not Applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of allotment

Coupon rate (%)

Maturity date

Issue size

(Rs.Crore)

Complexity levels

Rating outstanding with outlook

INE583D07331

Long-term principal protected market linked debentures

19-Dec-2022

6.10% GSec

15-Apr-2026

25.0

Highly complex

CRISIL PPMLD A/Stable

NA

Commercial paper

NA

NA

7 to 365 days

200

Simple

CRISIL A1

INE583D07299

Non-convertible debentures

28-Sep-2022

10.15

28-Mar-2024

39.17

Simple

CRISIL A/Stable

INE583D07307

Non-convertible debentures

26-Sep-2022

10.35

26-Dec-2024

11.55

Simple

CRISIL A/Stable

INE583D07315

Non-convertible debentures

26-Sep-2022

10.5

26-Sep-2025

49.28

Simple

CRISIL A/Stable

INE583D07323

Non-convertible debentures

29-Aug-2022

10.35

29-Aug-2024

37.50

Simple

CRISIL A/Stable

INE583D07349

Non-convertible debentures

24-Feb-2023

10

24-Aug-2024

20

Simple

CRISIL A/Stable

INE583D07356

Non-convertible debentures

8-Mar-2023

10.5

8-Mar-2026

50

Simple

CRISIL A/Stable

NA

Working capital demand loan

NA

NA

NA

65

NA

CRISIL A/Stable

NA

Overdraft facility*

NA

NA

NA

10

NA

CRISIL A/Stable

NA Overdraft facility NA NA NA 11 NA CRISIL A/Stable

NA

Cash credit

NA

NA

NA

15

NA

CRISIL A/Stable

NA

Proposed long-term bank loan facility

NA

NA

NA

39.45

NA

CRISIL A/Stable

NA

Term Loan

22-Jun-2022

NA

1-Jan-2024

7.78

NA

CRISIL A/Stable

NA

Term Loan

23-Dec-2022

NA

29-Dec-2025

61.74

 

NA

CRISIL A/Stable

NA

Term Loan

11-Apr-2022

NA

12-Nov-2027

30

NA

CRISIL A/Stable

NA

Term Loan

28-Mar-2022

NA

30-Mar-2027

118.58

NA

CRISIL A/Stable

NA

Term Loan

10-Mar-2022

NA

1-Mar-2025

19.95

NA

CRISIL A/Stable

NA

Term Loan

21-Sept-2022

NA

30-Apr-2028

72.2

NA

CRISIL A/Stable

NA

Term Loan

21-Apr-2022

NA

30-Apr-2025

20.83

NA

CRISIL A/Stable

NA

Term Loan

28-Oct-2021

NA

30-Oct-2025

8.57

NA

CRISIL A/Stable

NA

Term Loan

9-Mar-2022

NA

10-Mar-2025

28.27

NA

CRISIL A/Stable

NA

Term Loan

22-Dec-2020

NA

3-Jan-2024

7.78

NA

CRISIL A/Stable

NA

Term Loan

27-Dec-2021

NA

1-Jan-2026

19.44

NA

CRISIL A/Stable

NA

Term Loan

22-Feb-2022

NA

25-Feb-2026

156.11

NA

CRISIL A/Stable

NA

Term Loan

20-Sept-2022

NA

15-Sept-2025

32.76

NA

CRISIL A/Stable

NA

Term Loan

09-Jan-2022

 

NA

30-Apr-2027

1.97

NA

CRISIL A/Stable

NA

Term Loan

16-Dec-2022

NA

03-Jan-2025

74.98

NA

CRISIL A/Stable

NA

Term Loan

22-Feb-2022

NA

28-Feb-2025

27.78

NA

CRISIL A/Stable

NA

Term Loan

19-Sep-2022

NA

30-Sep-2027

25

NA

CRISIL A/Stable

NA

Term Loan

14-Aug-2023

NA

31-Aug-2028

25

NA

CRISIL A/Stable

NA

Term Loan

6-Jan-2022

NA

20-Dec-2025

45

NA

CRISIL A/Stable

NA

Term Loan

24-Jun-2022

NA

29-Jun-2024

21.88

NA

CRISIL A/Stable

NA

Term Loan

30-May-2022

NA

30-May-2025

12.78

NA

CRISIL A/Stable

NA

Term Loan

24-Nov-2022

NA

10-Nov-2025

100

NA

CRISIL A/Stable

NA

Term Loan

06 -Apr-2022

NA

30-Apr-2025

114.78

NA

CRISIL A/Stable

NA

Term Loan

27-Jul-2022

NA

5-Aug-2025

23.28

NA

CRISIL A/Stable

NA

Term Loan

20-Nov-2021

NA

24-Dec-2023

21.67

NA

CRISIL A/Stable

NA

Term Loan

18-Sep-2021

NA

28-Jul-2024

16

NA

CRISIL A/Stable

NA

Term Loan

17-Aug-2021

NA

31-Aug-2026

15

NA

CRISIL A/Stable

NA

Term Loan

23-Dec-2022

NA

29-Dec-2025

50

NA

CRISIL A/Stable

NA

Term Loan

24-Nov-2022

NA

10-Nov-2025

100

NA

CRISIL A/Stable

NA

Term Loan

21 -Oct-2022

NA

31-Oct-2025

21.11

NA

CRISIL A/Stable

NA

Term Loan

19-Sept-2022

NA

30-Sept-2027

25

NA

CRISIL A/Stable

NA

Term Loan

30-Dec-2021

NA

25-Mar-2025

21.54

NA

CRISIL A/Stable

NA

Term Loan

22-Sept-2022

NA

27-Mar-2025

32.77

NA

CRISIL A/Stable

*Includes FX Limit of Rs.8 crore

 

Annexure – Details of Rating Withdrawn

ISIN

Name of instrument

Date of

allotment

Coupon

rate (%)

Maturity

date

Issue size

(Rs.Crore)

Complexity

Level

Rating

NA

Tier II bonds^

NA

NA

NA

200

Complex

Withdrawn

NA

Long-term principal protected market linked debentures^

NA

NA

NA

225

Highly complex

Withdrawn

NA

Non-convertible debentures^

NA

NA

NA

42.5

Simple

Withdrawn

^Yet to be issued

Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Fund Based Facilities LT 1500.0 CRISIL A/Stable 19-02-24 CRISIL A-/Positive 11-10-23 CRISIL A-/Positive 20-12-22 CRISIL A-/Stable   -- --
      --   -- 21-08-23 CRISIL A-/Positive 02-12-22 CRISIL A-/Stable   -- --
      --   -- 17-03-23 CRISIL A-/Positive 26-05-22 CRISIL A-/Stable   -- --
      --   -- 08-02-23 CRISIL A-/Stable   --   -- --
      --   -- 07-02-23 CRISIL A-/Stable   --   -- --
Commercial Paper ST 200.0 CRISIL A1 19-02-24 CRISIL A1 11-10-23 CRISIL A1 20-12-22 CRISIL A1   -- --
      --   -- 21-08-23 CRISIL A1 02-12-22 CRISIL A1   -- --
      --   -- 17-03-23 CRISIL A1 26-05-22 CRISIL A1   -- --
      --   -- 08-02-23 CRISIL A1 04-05-22 CRISIL A1   -- --
      --   -- 07-02-23 CRISIL A1   --   -- --
Non Convertible Debentures LT 207.5 CRISIL A/Stable 19-02-24 CRISIL A-/Positive 11-10-23 CRISIL A-/Positive 20-12-22 CRISIL A-/Stable   -- --
      --   -- 21-08-23 CRISIL A-/Positive 02-12-22 CRISIL A-/Stable   -- --
      --   -- 17-03-23 CRISIL A-/Positive 26-05-22 CRISIL A-/Stable   -- --
      --   -- 08-02-23 CRISIL A-/Stable   --   -- --
      --   -- 07-02-23 CRISIL A-/Stable   --   -- --
Tier II Bond LT 200.0 Withdrawn 19-02-24 CRISIL A-/Positive 11-10-23 CRISIL A-/Positive   --   -- --
      --   -- 21-08-23 CRISIL A-/Positive   --   -- --
      --   -- 17-03-23 CRISIL A-/Positive   --   -- --
Long Term Principal Protected Market Linked Debentures LT 25.0 CRISIL PPMLD A/Stable 19-02-24 CRISIL PPMLD A-/Positive 11-10-23 CRISIL PPMLD A-/Positive 20-12-22 CRISIL PPMLD A- r /Stable   -- --
      --   -- 21-08-23 CRISIL PPMLD A-/Positive 02-12-22 CRISIL PPMLD A- r /Stable   -- --
      --   -- 17-03-23 CRISIL PPMLD A-/Positive 26-05-22 CRISIL PPMLD A- r /Stable   -- --
      --   -- 08-02-23 CRISIL PPMLD A-/Stable   --   -- --
      --   -- 07-02-23 CRISIL PPMLD A-/Stable   --   -- --
All amounts are in Rs.Cr.
 
 
Annexure - Details of Bank Lenders & Facilities
Facility Amount (Rs.Crore) Name of Lender Rating
Cash Credit 5 State Bank of India CRISIL A/Stable
Cash Credit 10 Central Bank Of India CRISIL A/Stable
Overdraft Facility& 10 IDFC FIRST Bank Limited CRISIL A/Stable
Overdraft Facility 10 Indian Bank CRISIL A/Stable
Overdraft Facility 1 Bandhan Bank Limited CRISIL A/Stable
Proposed Long Term Bank Loan Facility 39.45 Not Applicable CRISIL A/Stable
Term Loan 20.83 DCB Bank Limited CRISIL A/Stable
Term Loan 12.78 SBM Bank (India) Limited CRISIL A/Stable
Term Loan 72.2 Central Bank Of India CRISIL A/Stable
Term Loan 23.28 Suryoday Small Finance Bank Limited CRISIL A/Stable
Term Loan 16 The Karnataka Bank Limited CRISIL A/Stable
Term Loan 61.74 Bandhan Bank Limited CRISIL A/Stable
Term Loan 32.77 Vivriti Capital Limited CRISIL A/Stable
Term Loan 1.97 Indian Overseas Bank CRISIL A/Stable
Term Loan 118.58 Canara Bank CRISIL A/Stable
Term Loan 30 Bank of Maharashtra CRISIL A/Stable
Term Loan 45 Punjab and Sind Bank CRISIL A/Stable
Term Loan 21.88 RBL Bank Limited CRISIL A/Stable
Term Loan 114.78 State Bank of India CRISIL A/Stable
Term Loan 50 UCO Bank CRISIL A/Stable
Term Loan 21.11 Ujjivan Small Finance Bank Limited CRISIL A/Stable
Term Loan 19.95 Capital Small Finance Bank Limited CRISIL A/Stable
Term Loan 8.57 Dhanlaxmi Bank Limited CRISIL A/Stable
Term Loan 7.78 HDFC Bank Limited CRISIL A/Stable
Term Loan 32.76 Indian Bank CRISIL A/Stable
Term Loan 74.98 Jana Small Finance Bank Limited CRISIL A/Stable
Term Loan 21.54 Utkarsh Small Finance Bank Limited CRISIL A/Stable
Term Loan 7.78 AU Small Finance Bank Limited CRISIL A/Stable
Term Loan 15 The South Indian Bank Limited CRISIL A/Stable
Term Loan 19.44 IDBI Bank Limited CRISIL A/Stable
Term Loan 156.11 IDFC FIRST Bank Limited CRISIL A/Stable
Term Loan 28.27 ESAF Small Finance Bank Limited CRISIL A/Stable
Term Loan 21.67 The Federal Bank Limited CRISIL A/Stable
Term Loan 100 UCO Bank CRISIL A/Stable
Term Loan 25 Maharashtra Gramin Bank CRISIL A/Stable
Term Loan 25 Kotak Mahindra Bank Limited CRISIL A/Stable
Term Loan 25 Union Bank of India CRISIL A/Stable
Term Loan 27.78 Kotak Mahindra Bank Limited CRISIL A/Stable
Term Loan 100 Small Industries Development Bank of India CRISIL A/Stable
Working Capital Demand Loan 25 RBL Bank Limited CRISIL A/Stable
Working Capital Demand Loan 15 Central Bank Of India CRISIL A/Stable
Working Capital Demand Loan 25 Kotak Mahindra Bank Limited CRISIL A/Stable
&Includes FX Limit of Rs 8 crore
Criteria Details
Links to related criteria
Rating Criteria for Finance Companies
CRISILs Bank Loan Ratings - process, scale and default recognition
CRISILs Criteria for rating short term debt

Media Relations
Analytical Contacts
Customer Service Helpdesk

Prakruti Jani
Media Relations
CRISIL Limited
M: +91 98678 68976
B: +91 22 3342 3000
PRAKRUTI.JANI@crisil.com

Rutuja Gaikwad 
Media Relations
CRISIL Limited
B: +91 22 3342 3000
Rutuja.Gaikwad@ext-crisil.com


Ajit Velonie
Senior Director
CRISIL Ratings Limited
B:+91 22 3342 3000
ajit.velonie@crisil.com


Subha Sri Narayanan
Director
CRISIL Ratings Limited
B:+91 22 3342 3000
subhasri.narayanan@crisil.com


Leena Gupta
Manager
CRISIL Ratings Limited
B:+91 22 3342 3000
Leena.Gupta@crisil.com
Timings: 10.00 am to 7.00 pm
Toll free Number:1800 267 1301

For a copy of Rationales / Rating Reports:
CRISILratingdesk@crisil.com
 
For Analytical queries:
ratingsinvestordesk@crisil.com


 

Note for Media:
This rating rationale is transmitted to you for the sole purpose of dissemination through your newspaper/magazine/agency. The rating rationale may be used by you in full or in part without changing the meaning or context thereof but with due credit to CRISIL Ratings. However, CRISIL Ratings alone has the sole right of distribution (whether directly or indirectly) of its rationales for consideration or otherwise through any media including websites and portals.


About CRISIL Ratings Limited (A subsidiary of CRISIL Limited, an S&P Global Company)

CRISIL Ratings pioneered the concept of credit rating in India in 1987. With a tradition of independence, analytical rigour and innovation, we set the standards in the credit rating business. We rate the entire range of debt instruments, such as bank loans, certificates of deposit, commercial paper, non-convertible/convertible/partially convertible bonds and debentures, perpetual bonds, bank hybrid capital instruments, asset-backed and mortgage-backed securities, partial guarantees and other structured debt instruments. We have rated over 33,000 large and mid-scale corporates and financial institutions. We have also instituted several innovations in India in the rating business, including ratings for municipal bonds, partially guaranteed instruments and infrastructure investment trusts (InvITs).
 
CRISIL Ratings Limited ('CRISIL Ratings') is a wholly-owned subsidiary of CRISIL Limited ('CRISIL'). CRISIL Ratings Limited is registered in India as a credit rating agency with the Securities and Exchange Board of India ("SEBI").
 
For more information, visit www.crisilratings.com 

 



About CRISIL Limited

CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. 

It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footprint.

It has delivered independent opinions, actionable insights, and efficient solutions to over 100,000 customers through businesses that operate from India, the US, the UK, Argentina, Poland, China, Hong Kong and Singapore.

It is majority owned by S&P Global Inc, a leading provider of transparent and independent ratings, benchmarks, analytics and data to the capital and commodity markets worldwide.

For more information, visit www.crisil.com

Connect with us: TWITTER | LINKEDIN | YOUTUBE | FACEBOOK


CRISIL PRIVACY NOTICE
 
CRISIL respects your privacy. We may use your contact information, such as your name, address and email id to fulfil your request and service your account and to provide you with additional information from CRISIL. For further information on CRISIL's privacy policy please visit www.crisil.com.



DISCLAIMER

This disclaimer is part of and applies to each credit rating report and/or credit rating rationale ('report') provided by CRISIL Ratings Limited ('CRISIL Ratings'). For the avoidance of doubt, the term 'report' includes the information, ratings and other content forming part of the report. The report is intended for use only within the jurisdiction of India. This report does not constitute an offer of services. Without limiting the generality of the foregoing, nothing in the report is to be construed as CRISIL Ratings provision or intention to provide any services in jurisdictions where CRISIL Ratings does not have the necessary licenses and/or registration to carry out its business activities. Access or use of this report does not create a client relationship between CRISIL Ratings and the user.

The report is a statement of opinion as on the date it is expressed, and it is not intended to and does not constitute investment advice within meaning of any laws or regulations (including US laws and regulations). The report is not an offer to sell or an offer to purchase or subscribe to any investment in any securities, instruments, facilities or solicitation of any kind to enter into any deal or transaction with the entity to which the report pertains. The recipients of the report should rely on their own judgment and take their own professional advice before acting on the report in any way.

CRISIL Ratings and its associates do not act as a fiduciary. The report is based on the information believed to be reliable as of the date it is published, CRISIL Ratings does not perform an audit or undertake due diligence or independent verification of any information it receives and/or relies on for preparation of the report. THE REPORT IS PROVIDED ON “AS IS” BASIS. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAWS, CRISIL RATINGS DISCLAIMS WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR OTHER WARRANTIES OR CONDITIONS, INCLUDING WARRANTIES OF MERCHANTABILITY, ACCURACY, COMPLETENESS, ERROR-FREE, NON-INFRINGEMENT, NON-INTERRUPTION, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE OR INTENDED USAGE. In no event shall CRISIL Ratings, its associates, third-party providers, as well as their directors, officers, shareholders, employees or agents be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of any part of the report even if advised of the possibility of such damages.

The report is confidential information of CRISIL Ratings and CRISIL Ratings reserves all rights, titles and interest in the rating report. The report shall not be altered, disseminated, distributed, redistributed, licensed, sub-licensed, sold, assigned or published any content thereof or offer access to any third party without prior written consent of CRISIL Ratings.

CRISIL Ratings or its associates may have other commercial transactions with the entity to which the report pertains or its associates. Ratings are subject to revision or withdrawal at any time by CRISIL Ratings. CRISIL Ratings may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of the instruments, facilities, securities or from obligors.

CRISIL Ratings has in place a ratings code of conduct and policies for managing conflict of interest. For more detail, please refer to: https://www.crisil.com/en/home/our-businesses/ratings/regulatory-disclosures/highlighted-policies.html.  Public ratings and analysis by CRISIL Ratings, as are required to be disclosed under the Securities and Exchange Board of India regulations (and other applicable regulations, if any), are made available on its websites, www.crisilratings.com and https://www.ratingsanalytica.com (free of charge). CRISIL Ratings shall not have the obligation to update the information in the CRISIL Ratings report following its publication although CRISIL Ratings may disseminate its opinion and/or analysis. Reports with more detail and additional information may be available for subscription at a fee.  Rating criteria by CRISIL Ratings are available on the CRISIL Ratings website, www.crisilratings.com. For the latest rating information on any company rated by CRISIL Ratings, you may contact the CRISIL Ratings desk at crisilratingdesk@crisil.com, or at (0091) 1800 267 1301. 

 

CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisilratings.com/en/home/our-business/ratings/credit-ratings-scale.html