GRUH Finance Limited (Revised)

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1 SML Isuzu Limited GRUH Finance Limited (Revised) Finance and Banking Housing Finance Companies Credit Perspective March 2018 RATING ACTION: Ratings reaffirmed Long-Term Rating: Long-term debt programme / Subordinated debt programme [ICRA]AAA Medium-Term Rating: Fixed Deposits MAAA Short-Term Rating: Commercial Paper [ICRA]A1+ Rating Outlook: Stable Total Rated Debt: Rs. 9,982 crore ANALYST CONTACTS Karthik Srinivasan Senior Vice President karthiks@icraindia.com Rating Rationale The rating factors in GRUH Finance Limited s (GRUH) strong parentage, with HDFC Limited (rated [ICRA]AAA (stable), MAAA (stable), and [ICRA]A1+) holding a ~58% stake in the company as on December 31, The rating also factors in the company s strong franchise and brand image in the western part of India, especially in Gujarat and Maharashtra, its steady growth in business volumes (17% CAGR in disbursements over the last four years), healthy profitability (average Return on Equity (RoE) of 30% over the last four years), good financial flexibility with access to diverse funding sources and good asset quality through business cycles (gross NPAs of 0.73% as on December 31, 2017) despite lending to the relatively vulnerable lower income self-employed segment. ICRA takes note of the mismatches in the company s ALM profile in the short-term buckets. However, the risk is partly mitigated by the company s policy of maintaining adequate unutilised bank lines as a liquidity buffer which can be drawn against the large proportion of portfolio eligible for priority sector funding. Further, the company has gradually been shifting a large proportion of its borrowings to long-term, thus reducing the reliance on short-term borrowings. Rating Outlook In ICRA s opinion, GRUH will continue to report steady growth with good asset quality and healthy profitability indicators given its conservative lending norms. The outlook may be revised to 'Negative' in case there is significant deterioration in the asset quality or solvency indicators for GRUH. Further, change in GRUH s ownership structure would remain a key rating sensitivity. Scenarios for Rating Downgrade A significant deterioration in asset quality or solvency indicators could result in a rating downgrade. Any significant change in GRUH s ownership structure could warrant a rating revision. Supreeta Nijjar Vice President supreetan@icraindia.com Akshay Kumar Jain Analyst akshay.jain@icraindia.com Prateek Mittal Analyst prateek.mittal@icraindia.com

2 Key Rating Considerations Credit Strengths Strong parentage, imparting overall strategic and management supervision Demonstrated track record of healthy growth and profitability Good asset quality notwithstanding the relatively vulnerable borrower profile Diversified funding mix Good growth opportunities in the affordable housing segment with the Government of India s (GoI) focus on Housing for All by 2022 Credit Challenges Moderate economic capitalisation indicators, given the higher pace of growth than internal accruals Relatively high ALM gaps; however, adequate unutilised bank lines and cash balances result in a comfortable liquidity profile Limited geographical diversity in portfolio Company Profile GRUH Finance Limited (GRUH) is an established housing finance company with a loan portfolio of Rs. 14,803 crore as on December 31, 2017 (13,244 crore as on March 31, 2017 and Rs. 11,115 crore as on March 31, 2016). HDFC Limited is the largest shareholder in GRUH with a stake of 57.95% as on December 31, While GRUH operates as an independent entity, the parent s shareholding and presence on its Board of Directors, translates into strong management and strategic support for the company. The company s corporate office is located in Ahmedabad, Gujarat and it had a distribution network of 192 retail offices across 11 states and 1 union territory as on December 31, EXHIBIT 1: Shareholding Pattern (December 31, 2017) Others 22% Domestic Institutional Investors 5% Foreign Institutional Investors 15% HDFC Limited 58% 2

3 (in Rs. crore) GRUH Finance Limited BUSINESS RISK PROFILE Strong parentage, imparting overall strategic and management supervision HDFC Limited is the largest shareholder in GRUH with a stake of ~58% as on December 31, While GRUH operates as an independent entity, the parent s shareholding and presence on its Board of Directors, translates into strong management and strategic support for the company. The ratings draw significant support from HDFC s ownership of GRUH. HDFC is the largest housing finance company (HFC) in India with highest credit quality ratings outstanding of [ICRA]AAA(Stable), MAAA(Stable), and [ICRA]A1+, for its borrowings from ICRA. Steady growth in business volumes in existing geographies; salaried segment constitutes majority of the borrowers EXHIBIT 2: Growth and Breakup of Disbursements Borrower Segment Wise GRUH reported a 19% increase in its total portfolio from Rs. 11,115 crore as on March 31, 2016 to Rs. 13,244 crore as on March 31, 2017 and further by 18% (YoY) to Rs. 14,803 crore as on December 31, The company s portfolio growth in FY2017 was higher than the HFC industry growth during the period of about 16%; however, it was lower than the 28% growth of smaller HFCs. The growth in GRUH s portfolio was muted in H1FY2018 on account of disruptions in the real estate market owing to implementation of Real Estate Regulation and Development Act (RERA) and Goods and Service Tax (GST). However, the growth picked up in Q3FY2018 during the festive season and ICRA expects an overall portfolio growth of around 20% in FY2018. EXHIBIT 3: Breakup of Portfolio as on December 31, 2017 by Type of Loan Non Housing 3% Builder Loans 4% Housing Loans 93% company extends builder loans selectively, restricting the ticket sizes to 15% of its net worth. The overall portfolio mix remained stable in FY2017 and 9MFY2018 with housing loans forming 93% of the loan book as on December 31, The company s target borrowers are eligible for benefits under Pradhan Mantri Awas Yojana (PMAY) for the affordable home segment. Further, various state governments plans to increase supply in the LMI and middle-income group (MIG) 100% 80% 60% 40% 20% 0% Salaried Assessed income Builder Loans Business - Formal income Professionals Growth in Disbursements In term of borrower mix, salaried borrowers constituted 55% of the overall portfolio as on March 31, 2017 followed by self-employed borrowers at 40% and balance being builder loans. Within the selfemployed segment, the proportion of assessed income loans remained high at ~30% as on March 31, 2017 (32% as on March 31, 2016). Within the self-employed segment, the proportion may continue to shift in favour of borrowers with formal income proof while the lending to assessed income borrowers slows down. Moreover, with growth expected largely from the affordable segment covered under the government scheme, the major focus areas for the company would be the economically weaker sections (EWS) and the low middle income (LMI) segment. The company restricted its exposure in the builder loan book owing to the stress in the sector and the builder book remained largely stable at 4% of the total portfolio as on December 31, The EXHIBIT 4: Trend in Growth of Assessed Income Based Portfolio 6,000 60% 4,000 2, % 2% 1% 6% 8% 9% 13% 11% 11% 34% 28% 50% 39% 33% 2,337 33% 26% 2,946 32% 30% 3,547 4,032 20% 14% Mar-14 Mar-15 Mar-16 Mar-17 Assessed Income based Portfolio % Growth in portfolio [RHS] 24% 52% 50% 40% 20% 0% % Share in overall portfolio [RHS] 3

4 segments is likely to support the company s growth over the medium term. Albeit the high risks inherent to the self-employed and low-income segments given the volatility in incomes, the company s past track record and strong internal processes mitigate the risks to some extent and impart comfort to the credit profile. EXHIBIT 5: Geographical Breakup of Disbursements, Branches and Portfolio 45% 40% 40% 35% 35% 34% 30% 29% 27% 25% 25% 20% 16% 16% 16% 15% 15% 10% 10% 10% 10% 7% 5% 3% 4% 1% 1% 0% Gujarat Maharashtra Madhya Pradesh Karnataka Rajasthan Others Branches as on March 31, 2017 Disbursements in FY2017 Portfolio as on March 31, 2017 EXHIBIT 6: Key Portfolio Characteristics GRUH operated across 11 states with a network of 192 branches as on December 31, Gujarat (35% of portfolio as on March 31, 2017) and Maharashtra (34% of portfolio as on March 31, 2017) together constituted a majority of the company s loan book. GRUH has good brand recognition in these two states, which has supported its growth; however, going forward the company expects to increase disbursements in other states such as Uttar Pradesh, Bihar, West Bengal, Jharkhand and Chhattishgarh. Mar-14 Mar-15 Mar-16 Mar-17 Average Ticket Size (in Rs. lakh) Average Original Tenure (in years) Average Loan to Cost Ratio (LCR) 69% 69% 70% 70% Average Fixed Obligation to Income Ratio (FOIR) 34% 34% 34% 34% % of floating rate loans 99% 97% 92% 90% % of portfolio at more than 80% LCR 6% 5% 6% 6% % of portfolio at greater than 20 years residual maturity 28% 18% 13% 11% Prepayment % 10.67% 11.44% 12% 12% GRUH sources retail business through GRUH referral associates (GRA). GRAs are responsible for sourcing business and collecting preliminary documents, while GRUH retains control over the credit, legal and technical appraisals. GRUH has a largely semi-urban branch network, resulting in its lending rates being higher than those of leading HFCs in metropolitan cities. With its increased focus on the affordable housing segment, the company s average ticket size declined to around Rs. 9 lakh. 4

5 Asset quality indicators remain comfortable EXHIBIT 7: Asset Quality Indicators In Rs. crore Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Gross NPAs Provisions Net NPAs Net worth ,113 1,236 Gross Advances 7,009 8,915 11,115 13,244 14,803 Gross NPA % 0.27% 0.28% 0.32% 0.31% 0.73% Net NPA % 0.00% 0.00% 0.09% 0.00% 0.00% Net NPA / Net worth 0.00% 0.00% 1.24% 0.00% 0.00% On an absolute basis, the company s Gross NPAs increased to Rs crore as on March 31, 2017 from Rs crore as on March 31, However, with a higher increase in advances during the year, the Gross NPA% remained stable at 0.31% as on March 31, 2017 (0.32% as on March 31, 2016). Further, with high provisions created during FY2017, the Net NPAs were nil as on March 31, However, in line with the industry trend there was an increase in delinquency during 9MFY2018. The company reported gross and net NPA% of 0.73% and 0.00% respectively as on December 31, While the company s asset quality remains under control, given the increase in the assessed income book, and vulnerable target borrower segment, delinquencies in the softer buckets could remain volatile. Temporary slowdown in growth in the housing segment; long term prospects remain good As per ICRA estimates, the total housing credit outstanding was around Rs trillion as on December 31, 2017 (Rs trillion as on March 31, 2017). The housing credit growth was stable at 17% for the 12 months ended December 31, 2017 visa-vis 16% for the 12 months ended December 31, There has been some moderation in the growth owing to disruptions in the real estate market owing to implementation of Real Estate Regulation and Development Act (RERA) and Goods and Service Tax(GST) and preference of end users for finished inventory /RERA approved projects. The growth in the sector was also impacted by a slowdown in new project launches and buyers and investors deferring their home purchase decisions in expectation of a decline in real estate prices, disruptions in the real estate market owing to RERA and GST. The share of HFCs and NBFCs in the overall mortgage finance market remained at around 38% as on December 31, 2017, with commercial banks accounting for the rest 62%. Long term growth outlook for the sector remains positive with higher growth expected in the second half of the current financial year. ICRA continues to believe that HFCs and NBFCs are likely to benefit from their focus on the housing finance market, their thrust on the relatively high growth segments like affordable housing and self-employed customers, and their comparatively superior service levels. Banks will nevertheless have a sizeable share of the market, given their competitive interest rates, extensive branch network and customer base, access to stable low-cost funds, and the requirement to meet priority sector lending targets. Banks credit growth is likely to improve in FY2018 as their reduction in home loan interest rates could lead to increased balance transfers, especially in the prime salaried segment. ICRA expects banks to grow by 16-18% and HFCs at 19-21% leading to an overall market growth of 17-19% in FY

6 FINANCIAL RISK PROFILE EXHIBIT 8: Key Financial Indicators In Rs. crore FY2015 FY2016 FY2017 Equity Capital Net Worth (Reported) ,113 Loan-book 8,926 11,115 13,244 Total Assets 9,181 11,443 13,586 Total Income 1,060 1,275 1,487 Net Interest Income (Net of BO Costs) Profit Before Tax (PBT) Profit After Tax (PAT) Yield on Average Earning Assets (%) 12.49% 11.94% 11.55% Cost of average interest-bearing funds (%) 9.19% 8.69% 8.19% Gross Interest Spread (%) 3.30% 3.26% 3.35% Net Interest Margin (%) 4.15% 4.04% 4.13% Operating Expenses /Average Total Assets 0.76% 0.78% 0.75% Provisions & Write offs / Average Total Assets 0.19% 0.21% 0.22% Cost to Income Ratio 15.13% 15.95% 15.56% PBT / Average Total Assets 3.67% 3.51% 3.53% PAT / Average Total Assets 2.48% 2.36% 2.37% Return on Average Net worth 30.91% 31.49% 30.45% Total Debt / Net worth Capital / Risk Weighted Assets 15.36% 17.82% 18.32% Tier I Capital / Risk Assets 13.89% 16.13% 16.82% Gross NPAs% 0.28% 0.32% 0.31% Sustained financial performance; although incremental spreads likely to be under pressure EXHIBIT 9: Trend in Yields, Cost of Funds and Lending For FY2017, GRUH reported a PAT of Rs. 297 crore over Spreads an asset base of Rs. 13,586 crore against a PAT of Rs % 12.5% crore over an asset base of Rs. 11,443 crore for FY % 12.0% 11.5% While the net interest income for GRUH increased by 10.0% 9.2% ~24% in FY2017, the impact was partially moderated by 8.7% 8.2% 8.0% the increase in operating expenses, credit costs and tax 6.0% rates. Consequently, GRUH s net profits grew by 22% in 3.3% 3.3% 3.4% 4.0% FY % EXHIBIT 10: Trend in Profitability Indicators 0.0% 5.0% 32.0% % 4.0% 4.1% Yields Cost of Funds Lending Spreads 4.0% 31.5% 31.5% 3.0% 2.0% 1.0% 0.0% 30.9% 2.5% 2.4% 2.4% 30.4% 0.8% 0.8% 0.8% 0.2% 0.2% 0.2% 31.0% 30.5% 30.0% 29.5% NIM Operating Expenses/ATA Credit Provisions/ATA PAT/ATA PAT/Average Networth [RHS] The decline in the company s cost of funds in FY2017 was higher than the decline in its yields on advances. Consequently, its lending spreads increased marginally leading to an increase in net interest margins. However, the benefit was negated by a decline in non-interest income, and the company s net profitability (return on assets) remained stable. 6

7 ICRA expects the company s loan book growth to remain steady going forward; however, there could be some pressure on profitability with incremental loans being on-boarded at finer spreads on account of increased competition. ICRA expects the company to maintain an incremental spread of around 2.8%-3.0% and incremental return on net worth of around 26-28% in FY2018, provided that its credit costs remain steady. For 9MFY2018, GRUH reported a net profit of Rs. 232 crore as compared with Rs. 186 crore for 9MFY2017 (25% increase) supported by an increase in net interest income. The return on equity for 9MFY2018 was 26.22% as compared with 26.66% in 9MFY2017. Moderate economic capitalisation indicators; demonstrated ability to raise capital EXHIBIT 11: Capitalisation Indicators In Rs. crore Mar-14 Mar-15 Mar-16 Mar-17 Dec-17 Tier I % 14.70% 13.89% 16.13% 16.82% 16.73% Tier II % 1.66% 1.47% 1.69% 1.50% 1.36% CAR % 16.37% 15.36% 17.82% 18.32% 18.09% Gearing Net worth/ Total Advances 8.7% 8.0% 7.5% 8.4% 8.4% The company s regulatory capital adequacy (18.09% as on December 31, 2017) is supported by the relatively lower risk weights prescribed by the National Housing Bank (NHB) for smaller ticket loans, which constitute a large proportion of GRUH s portfolio. GRUH also has sufficient headroom available to raise Tier II bonds in order to maintain adequate capitalisation levels. GRUH s economic capitalisation levels were moderate with a relatively high gearing of 10.8 times as on March 31, 2017 and times as on December 31, Nevertheless, GRUH s ability to raise equity remains very strong owing to its parent s strong credit profile and demonstrated support, and its own good market standing. Diverse borrowing profile; relatively higher share of fixed rate borrowings leading to some interest rate risk EXHIBIT 13: Borrowing Mix In Rs. crore Mar-15 % share Mar-16 % share Mar-17 % share Dec-17 % share Bank Borrowings 2,700 33% 3,931 38% 4,320 36% 553 4% NCD 650 8% 847 8% 2,387 20% 4,447 33% Subordinated NCD 35 0% 35 0% 35 0% 35 0% Commercial Paper 750 9% 0 0% 0 0% 4,100 31% HDFC Ltd KFW 11 0% 10 0% 0 0% 0 0% NHB Refinancing 2,777 34% 3,959 39% 3,771 31% 2,746 21% Fixed Deposits 1,292 16% 1,462 14% 1,505 13% 1,402 11% Total 8, % 10, % 12, % 13, % Cost of Funds 9.19% 9.42% 8.65% 7.66% Gearing (times) GRUH enjoys good financial flexibility with access to diverse funding sources at competitive rates of interest. The company s lower cost of funds has also been supported by the relatively lower rate of refinance from NHB (constituting 31% of the total borrowings as on March 31, 2017). GRUH has also been receiving low cost funds from NHB under the Rural Housing Fund (RHF). With the softening of systemic interest rates, the company has been replacing bank borrowings with market borrowings which also resulted in a reduction in its cost of funds. As on December 31, 2017, around 64% of GRUH s borrowings were through market borrowings, around 21% in form of NHB refinance, 4% from banks and balance and 11% in the form of fixed deposits and other sources. 7

8 Relatively high ALM gaps; however, adequate unutilised bank lines and cash balances result in comfortable liquidity GRUH s reliance on short-term funds, while resulting in a lower cost of funds, results in relatively high ALM gaps. ICRA takes comfort from the management s stated policy of maintaining adequate unutilised bank lines and cash balances. GRUH also carries an interest rate risk in a declining interest rate scenario, with a major proportion of its borrowings as on December 31, 2017 being at fixed rates vis-à-vis only 8% of its advances at fixed rates. However, the risk is mitigated to an extent by the reset clauses in its fixed rate liabilities, and the relatively short tenure of such liabilities as compared with the assets and their relatively competitive rates of interest. 8

9 BUSINESS & FINANCIAL OUTLOOK EXHIBIT 14: Business and Financial Outlook Parameters Portfolio growth and geographical diversification Profitability Capitalisation and capital requirement Asset Quality Liquidity Source: Company, ICRA research ICRA s Comments ICRA expects to an overall portfolio growth of 20% in FY2018, largely driven by the affordable housing and the self-employed customers. The company expects to increase disbursements in other states such as Uttar Pradesh, Bihar, West Bengal, Jharkhand and Chhattishgarh, thus increasing its geographical diversification. ICRA expects some pressure on profitability going forward with incremental loans being on-boarded at finer spreads on account of increased competition. Overall, ICRA expects the company to maintain an incremental spread of around 2.8%-3.0% and incremental return on net worth of around 26-28% in FY2018, provided its credit costs remain steady. The company s capitalisation profile is expected to remain comfortable supported by strong internal accruals. ICRA estimates that at the current level of growth and internal capital generation, GRUH s capital requirements will be low. Although the company s asset quality has been under control, given the increase in the assessed income book, and the vulnerable target borrower segment, there could be some volatility in delinquencies for going forward. However, given the company s long track record and in-depth understanding of the segment, ICRA expects the asset quality to remain comfortable. The company s well diversified borrowing mix, strong parentage and long-standing presence in the market enable it to raise funds from the market easily; ICRA expects the liquidity profile to remain comfortable. PROMOTER AND MANAGEMENT PROFILE HDFC Limited (Shareholding 58% as on December 31, 2017) Housing Development Finance Corporation Limited (HDFC) is India s premier housing finance entity in existence for 40 years. With a presence in banking, insurance and asset management, the HDFC Group is an important part of the Indian financial services sector. During FY2017, HDFC reported a total income of Rs. 33,160 crore on an asset base of Rs. 336,358 crore as compared with a total income of Rs. 30,957 crore on an asset base of Rs. 288,877 crore in FY2016. The company s PAT stood at Rs. 7,443 crore during FY2017 as compared with Rs. 7,093 crore during FY2016. During 9MFY2018, HDFC reported a PAT of Rs. 9,327 crore on a total income of Rs. 25,598 crore. EXHIBIT 15: Board of Directors of GRUH Finance Limited (as on December 31, 2017) Sr. No. Name Designation 1 Mr. K.M Mistry Chairman (Non-Executive) [Vice Chairman and CEO, HDFC Limited] 2 Ms. Renu S. Karnad Non-Executive, Non-Independent Director [Managing Director, HDFC Limited] 3 Mr. K.G Krishnamurthy Non-Executive, Non-Independent Director 4 Mr. Prafull Anubhai Independent Director 5 Mr. S. G Mankad Independent Director [Chairman - Gujarat International Finance TEC-CITY Co. Limited(GIFT)] 6 Mr. Biswamohan Mahapatra Independent Director 7 Mr. Pankaj Patel Independent Director [Chairman & M.D., Cadilla Healthcare Limited] 8 Mr. Rajesh Narain Gupta Independent Director [Managing Partner, SNG & Partners] 9 Ms. Bhavna Doshi Independent Director 10 Mr. Kamlesh Shah Executive Director 11 Mr. Sudhin Choksey Managing Director Source: Company, ICRA research 9

10 Annexure-I: Past Financials PROFIT AND LOSS ACCOUNT Mar-15 Mar-16 Mar-17 Interest Income 1, , , Interest Expense Net Interest Income Non-Interest Income / Fee Income Operating Income Operating expense Operating Profit Provisions Operating Profit (net of provisions) PBT Tax incl. prior period adj RPAT BALANCE SHEET Liabilities Equity Share Capital Reserves (Net) , Net Worth , Fixed Deposits 1, , , Other Borrowings (incl. Pref. Shares) 6, , , Interest Accrued but not due Other Current Liabilities Deferred Tax Liability Total Liabilities 9, , , Assets Net HP +Lease adjusted for Advance EMI received 8, , , Investments Cash & Bank Balances Service Charges receivable & Interest Accrued but not due Advance Tax paid Other Current Assets Net Fixed Assets Total Assets 9, , , Source: Company, ICRA research; Note: Amounts in Rs. crore 10

11 KEY FINANCIAL RATIOS FY2015 FY2016 FY2017 OPERATING RATIOS Yield on Average Loans (Net of BO Costs) 12.56% 11.98% 11.60% Yield on Average Investments 9.04% 10.07% 8.76% Yield on Average Earning Assets (Net of BO Costs) 12.49% 11.94% 11.55% Cost of Average Interest-Bearing Funds 9.19% 8.69% 8.19% Gross Interest Spread adj. for brokerage & commissions 3.30% 3.26% 3.35% PROFITABILITY RATIOS Total Interest Income / ATA 12.45% 11.91% 11.51% Interest Expense / ATA 8.26% 7.83% 7.35% Net Interest Margin (adj. for BO costs) / ATA 4.15% 4.04% 4.13% Non- interest income / ATA 0.47% 0.46% 0.37% Operating expenses / ATA 0.76% 0.78% 0.75% Operating Profit / ATA 3.85% 3.72% 3.75% Operating Profit (net of credit provisions) / ATA 3.67% 3.51% 3.53% Credit Prov. & Write-offs / ATA 0.19% 0.21% 0.22% PBT / Average Total Assets 3.67% 3.51% 3.53% Tax / PBT (before extraordinary items) 32.26% 32.66% 32.88% PAT / ATA 2.48% 2.36% 2.37% PAT / Average Net worth 30.91% 31.49% 30.45% CAPITALISATION RATIOS Gearing Capital Adequacy Ratio 15.36% 17.82% 18.32% Net NPA / Net Worth 0.00% 1.24% 0.00% ASSET QUALITY Gross NPA / Gross Advances 0.28% 0.32% 0.31% Net NPA / Net Advances 0.00% 0.09% 0.00% Source: Company, ICRA research; Note: All ratios as per ICRA calculations 11

12 ANNEXURE II: DETAILS OF RATED FACILITY Instruments Amount Rs. crore Rating Long-term Debt Programme 4,447 [ICRA]AAA (Stable) Subordinated Debt Programme 35 [ICRA]AAA (Stable) Commercial Paper Programme 5,500 [ICRA]A1+ Fixed Deposits Programme - MAAA (Stable) Total 9,982 Links to applicable criteria: Rating Methodology for Housing Finance Companies 12

13 Corrigendum The Credit Perspective document dated March 13, 2018 has been corrected with revisions as detailed below Change on account of typographical errors under the Business risk profile section on page 3 and 4 Change in designation of one BOD under exhibit 15 on page 9. 13

14 RELATIONSHIP CONTACT L. Shivakumar About ICRA Limited: ICRA Limited was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency. Today, ICRA and its subsidiaries together form the ICRA Group of Companies (Group ICRA). ICRA is a Public Limited Company, with its shares listed on the Bombay Stock Exchange and the National Stock Exchange. The international Credit Rating Agency Moody s Investors Service is ICRA s largest shareholder. For more information, visit and 14

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