Shriram Finance Limited has secured the highest credit rating from CARE Ratings Limited, receiving CARE AAA ratings with stable outlook for its bank facilities and non-convertible debentures worth ₹57,631.12 crore. The rating assignment was communicated to stock exchanges on February 13, 2026, in compliance with SEBI listing regulations.

Credit Rating Details

CARE Ratings Limited has assigned new ratings to Shriram Finance's financial instruments across two major categories. The rating action covers substantial funding requirements and reflects the company's strong creditworthiness.

Rating Significance

The CARE AAA rating represents the highest degree of safety regarding timely servicing of financial obligations and carries the lowest credit risk. For short-term instruments, the CARE A1+ rating indicates the highest degree of safety regarding timely payment of financial obligations. These ratings are typically assigned to instruments with very strong degree of safety regarding timely payment of financial obligations.

The stable outlook indicates that the rating is likely to remain unchanged over the medium term, reflecting consistent performance expectations. The ratings are valid for one year from February 12, 2026, subject to periodic surveillance and review by CARE Ratings.

Bank Facilities Structure

The ₹50,000 crore bank facilities rating encompasses both long-term and short-term funding arrangements. According to the rating documentation, these facilities are proposed arrangements that will support the company's operational and growth financing requirements.

Non-Convertible Debentures

The ₹7,631.12 crore non-convertible debenture program has also received the CARE AAA; Stable rating. The company must complete the NCD issuance within six months from the rating date (by August 12, 2026) to maintain rating validity. Any changes in issue size or terms will require rating revalidation.

CARE Ratings has requested detailed post-issuance information including ISIN, coupon rates, redemption terms, and trustee details within seven days of instrument placement. The rating agency will conduct annual surveillance reviews and reserves the right to revise ratings based on performance and market conditions.

Regulatory Compliance

Shriram Finance has fulfilled its disclosure obligations under SEBI Listing Regulations, particularly Regulation 30 and Regulation 51. The company has uploaded the rating intimation on its website at www.shriramfinance.in as required under Regulation 62(1)(i) of the listing regulations.

The rating letters were signed by Company Secretary & Chief Compliance Officer U Balasundararao and communicated to both BSE Limited and National Stock Exchange of India Limited. CARE Ratings analysts Dhruv Shah and Associate Director Aditya R Acharekar handled the rating assignment process.

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Shriram Finance Limited has made significant progress in its proposed preferential issue transaction with MUFG Bank Ltd, with the Board of Directors approving the assessment of nominated directors from the Japanese banking giant.

Board Assessment of Nominees

The Board of Directors, through a resolution passed by circulation on February 12, 2026, assessed and determined that the proposed nominees from MUFG Bank satisfy the applicable 'fit and proper' criteria for appointment as directors.

Transaction Framework

The director appointments are contingent upon the completion of the substantial equity transaction between Shriram Finance and MUFG Bank Ltd.

Regulatory Progress

The company has received important regulatory clarity from the Reserve Bank of India, which confirmed on February 13, 2026, that MUFG Bank does not require prior approval for the proposed transaction. This RBI confirmation represents a crucial milestone in the approval process.

Pending Conditions

The Board will consider the formal appointment of the proposed nominees subject to two key conditions. First, receipt of written approval from the Reserve Bank of India under the RBI (Non-Banking Financial Companies - Governance) Directions, 2025, approving the change in Board constitution and appointment of the nominees as directors. Second, the consummation of the proposed equity share issuance and allotment to MUFG Bank.

The company has committed to providing additional details regarding the director appointments upon formal Board approval, in compliance with regulatory requirements under Regulation 30 and Schedule III of the SEBI listing regulations.