- March 25, 2022
- Posted by: Bastion team
- Category: World News
Suryoday Small Finance Bank (SSFB) on Friday said rating agency ICRA has assigned A1+credit ratings to it for enhanced amount of certificate of deposit programme ratings.
“The stable outlook reflects ICRA’s expectation that the bank would continue to maintain its credit profile over the medium term and would see an improvement in its profitability aided by the experienced management team, strong capitalization profile, healthy traction in deposits, and financial flexibility,” the bank said in its statement.
ICRA rating considered the bank’s board and its senior management team’s role in scaling up its operations as they gradually diversified its product offerings and also SSFB’s healthy capitalisation profile with a capital adequacy ratio (CAR) of 41.4% (Tier I: 37.8%) as on December 31, 2021.
The ratings also factor in the healthy traction in SSFB’s deposit mobilisation, with deposits comprising 58% of its total borrowings as on December 31, 2021,” the bank said, adding that the current capitalisation profile is comfortable for the bank’s near-term growth requirements.
SSFB reported that the share of current account savings accounts (CASA) improved to ~19% as on December 31, 2021, from 15% as on March 31, 2021 and that it has reduced the share of bulk deposits and is gradually establishing a stable retail depositor base.
“The ratings also factor in the bank’s…