Karur Vysya Bank has received credit rating reaffirmation from CARE Ratings Limited for its deposit programmes, as communicated to the stock exchanges on December 16, 2025. The bank informed both the National Stock Exchange of India Limited and BSE Limited about the rating action under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Credit Rating Details

CARE Ratings Limited has reaffirmed the credit ratings for the bank's deposit programmes, maintaining the existing rating levels. The rating action covers both short-term and long-term deposit programmes of the bank.

Rating Significance

The reaffirmation of ratings indicates CARE Ratings' continued confidence in the bank's creditworthiness and financial stability. The CARE A1+ rating for the short-term programme reflects the highest degree of safety regarding timely payment of financial obligations, while the CARE AA rating for the fixed deposit programme indicates high safety for timely payment of interest and principal.

Regulatory Compliance

The bank has fulfilled its disclosure obligations by promptly informing the stock exchanges about the credit rating action. The communication was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders and regulatory compliance.

The rating reaffirmation supports the bank's deposit mobilization efforts and reinforces investor confidence in its financial strength and operational capabilities.

Indian Railway Finance Corporation (IRFC) has made a significant move in the international financial markets by signing a loan agreement with Sumitomo Mitsui Banking Corporation's GIFT City branch for an External Commercial Borrowing (ECB) of JPY equivalent to USD 300 million. This marks IRFC's return to the ECB market after a hiatus of more than three years, signaling a strategic shift in its funding approach.

Key Details of the ECB Agreement

• Loan Amount: JPY equivalent to USD 300 million
• Tenure: 5 years
• Benchmark: Overnight TONAR (Tokyo Overnight Average Rate)
• Purpose: Financing projects with forward or backward linkage to the railway sector

Strategic Implications

This move by IRFC is aimed at:

1. Reducing the weighted average borrowing cost
2. Reviving presence in the international market
3. Strengthening railway infrastructure

Financial Position of IRFC

To provide context on IRFC's financial standing, here's a snapshot of key balance sheet items:

The balance sheet data indicates a stable financial position with modest growth in assets and a more significant increase in equity over the past year. This solid financial foundation likely contributed to IRFC's ability to secure favorable terms for the ECB.

Implications for Railway Sector Development

The ECB agreement is expected to play a crucial role in furthering the development of India's railway infrastructure. By tapping into international markets, IRFC is diversifying its funding sources and potentially accessing more competitive rates, which could translate to more efficient financing for railway projects.

As IRFC continues to strengthen its financial position and explore diverse funding avenues, it is well-positioned to support the ongoing modernization and expansion of India's railway network, a critical component of the country's infrastructure development strategy.