ICRA assigns A1+ to UTI's Rs 3500cr CDP

New Delhi, Aug 30 (UNI) Credit rating agency ICRA today attributed A1+ rating, indicating highest credit quality, to UTI Bank for its Rs 3500 crore Certificates of Deposit Programme (CDP).

UTI Bank has a LAA+ rating on its outstanding subordinated bonds and a LAA rating for its Hybrid Tier I and Upper Tier II bonds programmes, from the rating agency.

The long-term ratings indicate high-credit-quality rating and the rated instrument carries low credit risk.

The ratings factor in UTI Bank's improving profitability supported by rise in net interest income, fee income profile, all-round growth in credit, focus on strengthening its asset quality and adequate capitalisation.

The ratings are also driven by the strong position of the bank in domestic debt arrangement and loan syndication business, which enables the bank to attract new businesses and clients.

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