CRISIL Rating of Fixed Deposit of 45 Financial Institutions
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
|Bank of Baroda||AAA
|ICICI Housing Finance Limited||AAA|
|State Bank of Hyderabad||AAA
|State Bank of Bikaner & Jaipur||AAA
|Punjab National Bank||AAA
|State Bank of Mysore||AAA
|State Bank of Travancore||AAA|
|Oriental Bank of Commerce||FAAA
|State Bank of India||FAAA
|Bank of India||AA+
|PNB Housing Finance||AA+
|Punjab & Sind Bank||AA
|Indian Overseas Bank||AA|
|Tamilnad Mercantile Bank||A1+|
|South Indian Bank||A1+
|Karur Vysya Bank||A1+
|Central Bank of India||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.