CRISIL Rating of Fixed Deposit of 45 Financial Institutions

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Investors opting for fixed deposits always look for financial institution offering high interest rate. However is your hard earned money safe in all the banks or non-banking financial corporations or others offering fixed deposit schemes? How will you know, whether or not the company is good or bad?

The answer is CRISIL rating of fixed deposits. Similar to what lenders do before approving any type of credit (loan or credit card) to an applicant they check CIBIL score. In the same manner, depositors should check CRISIL grading of fixed deposit scheme. So if you want to know whether the company you’re investing money is credible or not, then check CRISIL rating.

What is CRISIL:

CRISIL is a company that provides ratings for various financial products offered by various companies based on various factors. Note that rating process by CRISIL is very rigorous.

In this article, we’ll check the CRISIL rating for fixed deposits offered by various financial institutions in India (banks, housing finance companies etc.). Listed in the below table are the CRISIL rating for FD.

Financial Institution
CRISIL Rating
ICICI Bank
AAA
Bank of Baroda
AAA
Union BankAAA
ICICI Housing Finance Limited
AAA
State Bank of Hyderabad
AAA
National Housing
AAA
State Bank of Bikaner & Jaipur
AAA
Punjab National Bank
AAA
HDFC Bank
AAA
Axis Bank
AAA
State Bank of Mysore
AAA
Indian Bank
AAA
State Bank of Travancore
AAA
Canara BankAAA
Dhanlaxmi BankFAAA
Kotak BankFAAA
Oriental Bank of Commerce
FAAA
State Bank of India
FAAA
Shriram Finance
FAAA
Bank of India
AA+
Sundaram Finance
AA+
Andhra Bank
AA+
PNB Housing Finance
AA+
Punjab & Sind Bank
AA
IDBI Bank
AA
Allahabad Bank
AA
Corporation Bank
AA
Indian Overseas BankAA
Federal BankA1+
Tamilnad Mercantile BankA1+
South Indian BankA1+
Karur Vysya Bank
A1+
Deutsche BankA1+
City Union
A1+
DBS BankA1+
IndusInd
A1+
Central Bank of India
AA-
United Bank
AA-
Dena Bank
AA-
Syndicate Bank
AA-
Jammu & Kashmir Bank
FAA
Indian Overseas Bank
FAA

Significance & meaning of each rating symbol:

  • AAA: Highest safety
  • AA: High safery
  • A: Moderate/adequate safety
  • BBB: Moderate credit risk but timely fulfillment of financial obligations
  • BB: Moderate risk but timely fulfillment of financial obligations
  • B: High risk of defaulting/inadequate safety
  • C: Very high risk of defaulting
  • D: Possibility of default in the future
  • NM: Not meaningful

+/- indicates position of the respective financial institution within the rating category.

Note that, poor grading does not necessarily mean default is ought to happen. It actually indicates that the risk associated with the financial product is high.

What should FD investors make of these ratings?

Depositors should always choose financial institution with a good credit rating from CRISIL. If FD interest rate is high but rating is poor, then stay away from these institutions. Check out NRI fixed deposit with maturity value of 21 Lacs.

Should we choose banks or non-banking financial corporations?

FDs from banks always guarantee safety which is not the case with NBFCs. So a detailed research should be done before putting money in NBFC. Read more on FDs offering highest interest rate.

How often these ratings are re-evaluated by CRISIL?

According to CRISIL, grading is done on the basis of debt obligation and is valid until the debt obligation is fully paid.

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