CRISIL reaffirms A1+ Short term ratings on AU’s deposits programme
AU Small Finance Bank, one the fastest growing new age banks, today received another upgrade for its long-term debt instruments from CRISIL. Its rating has moved up from CRISIL A+ to CRISIL AA- with stable outlook. The short term ratings on its deposits programme were reaffirmed at CRISIL A1+.
The rating upgrade is driven by the bank’s demonstrated ability to build-up a significant deposit franchise, replace the legacy borrowings and its further strengthened capital position. The rating factors in the recent capital infusion by Temasek Holdings that has supported the bank’s scale of operations. The agency has also highlights that the bank has sustained above average asset quality over the past few years.
Commenting over the announcement, Sanjay Agarwal, MD & CEO, AU Bank said, “This upgrade has once again reaffirmed the strengths of our banking franchise, portfolio quality and capital position. In the present market conditions, this upgrade is quite reassuring. It strongly compliments our vintage, distribution and pedigree. It will significantly help us build one of the most trusted, customer focused, retail bank from India in the long term and create value for all stakeholders.
According to the credit rating agency’s rating definition, instruments with ‘AA-’ are considered to have high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. AU Bank long term instruments have got a rating of AA- from all four rating agencies including CARE Ratings, India Ratings and ICRA Ratings.
AU Small Finance Bank Limited (AU Bank) is a Fortune India 500 Company. AU Bank happens to be the only scheduled commercial bank originating from Jaipur with ~500 touch points operational across 11 states of North, West and Central India and a team of 11,500+ employees. AU started its journey in the year 1996 as an NBFC, Au Financiers and under the aegis of Reserve Bank of India, for the last two decades, it worked relentlessly as a retail focused, customer centric premier and trusted asset financing NBFC. It touched over a million plus underbanked and unbanked customers, prior to becoming a bank in April 2017.