The new rating is a testimony to InCred’s sharp focus on asset quality, the product market fit, operational efficiency, as well as a strong and diversified loan portfolio and liabilities franchise.
InCred Financial Services Limited (InCred Finance) – one of India’s leading diversified NBFCs, that turned Unicorn last year, has another reason to celebrate!
CRISIL has upgraded the long-term rating for InCred Finance to ‘CRISIL AA-/Stable’ from the earlier rating, which was ‘CRISIL A+/Stable’. The upgrade in ratings reflects strong capitalization of the company supported by high pedigree of investor base, coupled with steady improvement in earnings profile. The ratings also factor in InCred’s experienced leadership team and diversified loan portfolio.
InCred Finance’s capitalization remains strong as reflected in its net-worth of Rs. 3,218 Cr. as on December 31, 2023, vis-à-vis Rs. 2,484 Cr as on March 31, 2023. The increase in net-worth was supported by the Rs. 500 Cr. equity capital raised by the company in December 2023 along with profit accretion during the period.
The upgrade comes on the back of significant growth reported by the firm, underpinned by a big jump in profitability with 9M 2024 PBT of Rs. 298 Cr up 132% (YoY Dec’23). InCred Finance’s Loan book grew to Rs. 8,013 Cr as on December 31, 2023, marking an annualized growth of 43% over that as on March 31, 2023 (Rs. 6,062 Cr).
InCred Finance has built deep moats around its businesses through best in class underwriting and risk analytics engines, a robust and scalable tech delivery platform, and an extensive on-ground customer support and collections infrastructure.
The company continues to see a rapid month-on-month growth trajectory and steady credit costs. The Cost-to-Income ratio for the company also saw a healthy decline from 56% to 44%.
Bhupinder Singh, Founder & Group CEO, InCred said, “The rating upgrade is a huge endorsement of our “risk first” ethos across the firm. Innovation in product and technology, coupled with class leading risk analytics, and a talent pool that is second to none, have been instrumental in shaping our growth story and giving us a clear edge. It makes me immensely proud that in a rapidly evolving and competitive market like India, InCred Finance has established a strong position in Consumer and MSME lending.”
