AU Small Finance Bank, a Fortune India 500 company, today received another upgrade for its long term rating from CARE ratings. Its rating improved from A+ to AA- with stable outlook.
The recent upgrade by CARE Ratings comes after the upgrade by India Ratings in Feb 2018 which reflects continued growth momentum post conversion into Small Finance Bank in April 2017 and ability to mobilise considerable amount of deposits in a short span of time. The rating also takes into account the improvement in financial flexibility of the company post listing of its equity shares on stock exchanges in July 2017 and grant of schedule commercial bank status in November 2017. The rating continues to factor in experienced management team, comfortable capitalization levels, comfortable liquidity profile and good resource profile.
Commenting on this achievement Mr. Sanjay Agarwal, MD & CEO, AU Small Finance Bank, “We welcome CARE Rating upgrade as it reflects our conscious effort of building a strong retail lability franchise and maintaining asset quality while gaining market share at a rapid pace. We will continue to scale our operations without compromising the quality of business to become one of the most trusted retail bank.”
Going forward, AU Bank’s ability to grow its scale of operations, while maintaining asset quality & profitability and diversification of its liability profile, will be key rating monitorable for CARE Ratings. AU Small Finance Bank had a liquidity coverage ratio of 118% as on December 31, 2017.