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    Crisil upgrades Indel Money's credit rating

    Synopsis

    The rating of Indel Money on the short-term scale has also been upgraded to ‘A3 Plus’ from ‘A3 minus’.

    Rating-1---istockiStock
    With the company expanding into new geographies, the scale of operations is expected to grow in the medium term.
    Kolkata: Indel Money, a south India-based non-banking finance company (NBFC), has been recently assigned a rating upgradation to ‘CRISIL BBB/Stable’ from ‘CRISIL BBB-/Stable’ on the long-term bank loan facilities by Crisil Ratings. The rating of Indel Money on the short-term scale has also been upgraded to ‘A3 Plus’ from ‘A3 minus’.

    According to Crisil Ratings, the long-term rating upgrade primarily factors in the substantial increase in the company’s scale of operations with assets under management (AUM) rising 43.6% over the past two years to Rs.336 crore as on March 31, 2020. The total AUM is approximately Rs.650 crore as on December, 2020. With the company expanding into new geographies, the scale of operations is expected to grow in the medium term.

    "Crisil Ratings believes Indel Money will maintain adequate capitalisation and sound asset quality and benefit from the experienced management over the medium term," mentioned the rating rationale.

    With the rating upgrade on the short-term scale, Indel Money has forayed into the commercial paper space with its first deal and has plans for more CP issuances in future.

    Commenting on the rating upgrades, Mr. Umesh Mohanan, executive director and CEO, Indel Money said, "Crisil Ratings upgrading our long-term rating to ‘CRISIL BBB/Stable’ is indeed a commendable achievement for us. Apart from bolstering our liability profile, the rating upgrade underlines the resilience of our gold loan business model. In fact, in FY 2020-21, our bottom-line has increased by five times thanks to the cumulative impact of our successful strategies laid in terms of focused market expansion, HR initiatives with more of human engineering and launch of innovative gold loan products such as one and two-year tenure gold loan schemes. We are committed to offer tailor-made and the most convenient gold loan solutions to the consumers, thus generating sustainable value for all our stakeholders."
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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

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    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

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