ICRA assigns A1 to BOR's 150 mn CD Programme
New Delhi, Apr 27 (UNI) Credit rating agency ICRA has assigned an A1 rating to the Rs 150 million Certificate of Deposit (CD) programme of Bank of Rajasthan(BOR).
The assigned rating indicates highest-credit-quality in the short term.
ICRA also assigned LA- rating for the Rs 700 million subordinated bond (Lower Tier II) programme of BOR indicating adequate credit quality in the long term.
The assigned ratings takes into account BOR's strong franchise in the state of Rajasthan, its low cost of deposit, low fresh NPA generation in the last two years, improving Gross and Net NPA indicators, improving solvency metrics and comfortable capitalisation.
However the rating is constrained by lower interest margin of BOR compared with peers, low core profitability indicators and the vulnerability of BOR's fixed investment portfolio to interest rate risk.
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