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Informist, Thursday, Oct. 16, 2025

--Fitch revises outlook on IIFL Finance to positive; affirms rtg at 'B+'

--Fitch revises rating outlook on IIFL Finance to positive from stable 

NEW DELHI – Fitch Ratings Thursday improved its outlook on IIFL Finance's long-term issuer default rating to positive from stable. At the same time, it affirmed the lender's rating at 'B+'. The rating on the global medium-term note programme was also affirmed at 'B+'.

IIFL Finance's standalone credit profile could improve in the next two years, including its business and risk profiles, asset quality and funding diversity, Fitch said. "The revision also reflects Fitch's expectation of a gradual decline in legacy problem assets over the next two years along with stabilisation of asset quality risks as management pivots the portfolio towards secured lending categories," the ratings agency said in a release.

However, near-term credit costs are likely to remain high and the non-banking finance company's rapid loan growth could stretch risk frameworks and increase operational risks. Fitch said it would take time to assess IIFL Finance's controls as the business scales after regulatory restrictions were lifted. The recent regulatory approval for opening more branches signalled that prior concerns had been addressed, the ratings agency said. 

IIFL Finance's consolidated net profit for the June quarter fell nearly 19% on year to INR 2.33 billion due to a rise in expenses and a fall in other income. On Thursday, shares of the company ended 1.3% lower at INR 499.90 on the National Stock Exchange.  End

Reported by Aaryan Khanna

Edited by Akul Nishant Akhoury

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