Press Release July 07, 2025 NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION Rating Assigned and Reaffirmed

Product	Quantum (Rs. Cr)	Long Term Rating	Short Term Rating
Bank Loan Ratings	2000.00	ACUITE AAA | Stable | Assigned	-
Bank Loan Ratings	8000.00	ACUITE AAA | Stable | Reaffirmed	-
Bank Loan Ratings	25000.00	-	ACUITE A1+ | Assigned
Bank Loan Ratings	70000.00	-	ACUITE A1+ | Reaffirmed
Total Outstanding	105000.00	-	-
Total Withdrawn	0.00	-	-

Rating Rationale

Acuite has assigned the long term rating of 'ACUITE AAA' (read as ACUITE triple A) on the Rs 2,000.00 Cr. Bank Loan Facilities of National Co-operative Development Corporation (NCDC). The Outlook is 'Stable'. Acuite has assigned the short term rating of 'ACUITE A1+' (read as ACUITE A one plus) on the Rs 25,000.00 Cr. Bank Loan Facilities of National Co-operative Development Corporation (NCDC). ­ Acuite has reaffirmed the long term rating of 'ACUITE AAA' (read as ACUITE triple A) on the Rs 8,000.00 Cr. Bank Loan Facilities of National Co-operative Development Corporation (NCDC). The Outlook is 'Stable'. Acuite has reaffirmed the short term rating of 'ACUITE A1+' (read as ACUITE A one plus) on the Rs 70,000.00 Cr. Bank Loan Facilities of National Co-operative Development Corporation (NCDC).   Rationale for Rating The rating for National Co-operative Development Corporation ( NCDC) factors in the strategic support and ownership from the Government of India (GoI) , being 100% owned by the Government of India (GoI). NCDC was established by an Act of Parliament in 1963 i.e under the NCDC Act 1962. It is a statutory cooperation under the Ministry of Cooperation previously under Ministry of Agriculture, Cooperation and Farmers Welfare .The rating further factors in the steady growth in the business profile indicated through an increase in the asset base to Rs 63670.48 Cr in Prov. FY 25 as against Rs 37793.92 Cr. in FY 24, accordingly NCDC registered a robust growth in PAT which stood at Rs 806.67 Cr. for Prov. FY 25 as against Rs 573.93 Cr. for FY 24. The rating also takes into consideration the improvements in the asset quality levels indicated by the GNPA for Prov. FY 25 at 0.71% as against 1.12% in FY 24 and the NNPA for FY 24 and Prov. FY 25 stand at zero percent. Their collection efficiency / recovery of loans has been at 99.84% for Prov. FY 25 which has steadily improved from 99.70% for FY 24.

About the company

­The National Co-operative Development Corporation (NCDC) was established by an Act of Parliament in 1963 as a statutory Corporation under the Ministry of Agriculture, Cooperation and Farmers Welfare. NCDC is engaged in the planning, promotion and development of cooperatives in agriculture and rural-oriented activities. It provides financial assistance for production, processing, marketing, storage, export and import of agricultural produce, food stuffs and certain other notified commodities besides income-generating activities such as poultry, dairy, fishery, sericulture and handloom. The corporation provides loans in the form of working capital loans to regional and state-level marketing federations, term loans for creation of infrastructure facilities like godowns, cold storages, equipment, transport vehicles boats and other tangible assets and margin money loans to cooperatives to raise working capital finance. The corporation operates through a General Council of 51 members to give shape to its policies and programmes and Board of Management (BoM) of 12 members to cater to the day-to-day activities. Besides its Head Office, NCDC functions through 18 Regional/State Directorates. Various functional divisions look after the programmes. The field offices play an important role in project identification/formulation and oversee its implementation. NCDC provides loans to cooperative societies, state government, and cooperative banks and to multi-state societies. The Registered office is located at New Delhi.

Unsupported Rating

­Not Applicable

Analytical Approach

­Acuité has adopted a standalone approach to analyse the business and financial profile of National Co-operative Development Corporation (NCDC) while factoring the ownership and strategic benefit from the Government of India.(GoI).

Key Rating Drivers

Strength

­Wholly owned by the Government of India National Co-operation Development Corporation (NCDC) was established by an Act of Parliament in 1963 i.e the NCDC Act 1962. It is a statutory cooperation under the Ministry of Cooperation previously under the Ministry of Agriculture, Cooperation and Farmers Welfare and is 100% owned by the Government of India. NCDC provides assistance to farmer cooperatives to improve productivity and production with respect to agricultural produce and processing, inputs supply such as seeds, fertilizers, kerosene oil, etc. NCDC also helps assist different types of cooperatives such as rural industrial cooperative sectors and services in rural areas such as agro credit, sanitation, etc. The corporation provides loans in the form of working capital loans to regional and state-level marketing federations, term loans for creation of infrastructure facilities like godowns, cold storages, equipment, transport vehicles boats and other tangible assets and margin money loans to cooperatives to raise working capital finance. NCDC provides the financial assistance under various Central Sector Schemes and NCDC Schemes. NCDC receives the support from the Government of India for recovery of loans. The corporation receives grants from the Government of India as and when a certain scheme is been instituted and the funding for the respective schemes is channelled through NCDC. Acuite notes that NCDC has a sanctioned grant for other sectors including fishery, textile and sugar of Rs 2000 Cr. that will be provided in tranches of Rs 500 Cr. annually for a period of 4 years and the grant of 1000 Cr.  which was completely received in FY25 from the Government of India for the sugar sector.  The corporation operates through a General Council consisting of 51 members to give shape to its policies and programmes and Board of Management of 12 members to cater to the day-to-day activities. The Managing Director of NCDC is also the additional secretary Ministry of Cooperation appointed by Government of India. Besides its Head Office, NCDC functions through 18 Regional/State Directorates. Various functional divisions look after the programmes. The field offices play an important role in project identification/formulation and oversee its implementation. NCDC provides loans to cooperative societies, state government, cooperative banks and to multi-state societies. Sound Asset Quality metrics The Corporation keeps 100% provisions of its NPA. NCDC is not a Non- Banking Financial Company (NBFC) and does not come under the purview of Reserve Bank of India (RBI) but, maintains steady asset quality metrics indicated by the GNPA  which saw an improvement for Prov. FY 25 at 0.71% as against 1.12 % in FY 24. Their collection efficiency/ Recovery of loans has been at 99.84% for Prov. FY 25 as against 99.70% for FY 24. NCDC tries to recover its NPA from borrowers and does not have any policy of write off and has not done any write offs till date. Steady earning profile National Co-operative Development Corporation (NCDC)  has seen a steady increase in profitability and  has  earned a PAT of Rs 806.67 Cr. for Prov. FY25 as against Rs 573.93 Cr. for FY 24. Owing to the lower cost of borrowings, NCDC has credit cost of the tune of 0.18% for Prov. FY 2025 as against 0.34% for FY 2024.  Broad Resource profile NCDC's resource profile consists of internal accruals, budgetary support from the central government, issuing NCDC bonds (backed by the government guarantee) and commercial paper as well as market borrowings. But currently as of FY 2025, the corporation is in the process to issue Bonds of Rs 4000Cr. which would be partly government guaranteed. The corporation presently has market borrowings mainly in the form of lines of credit and term loans. The corporation receives grants from the central government as and when a certain scheme is been instituted and the funding for those schemes is channelled through NCDC. The corporation currently has a sanctioned limited of around Rs. 76,345 Cr. and can avail the credit facilities from various financial institutions including public and private banks as well.

Weakness

­Significant exposure to Agriculture and related sectors National Co-operative Development Corporation (NCDC) primarily provides financial assistance to the cooperative sector. For FY 25, NCDC has a majority lending exposure of ~73% of their loan portfolio to cooperative societies which include District Cooperative Banks and ~18% toward various State Governments. NCDC has majority of its disbursements extended to State Governments, or Government guaranteed loans or Government controlled loans.  NCDC has seen a decrease in the sector concentration from marketing towards agriculture produce which contributes 70.03% of its credit portfolio for Prov. FY 25 as against 77.36% of its credit portfolio for FY 24. However, owing to strong risk management practices, the asset quality of the portfolio has remained healthy. Regulatory supervision As NCDC does not come under the purview of RBI, it is not required to maintain asset classification, capitalisation levels, it does not have sector specific thresholds while providing financial assistance. Hence it is crucial to monitor the impact on NCDC's asset quality periodically which would impact profitability going forward. Additionally, NCDC has its financials audited by the Comptroller and Auditor General (CAG) and the audited financials are presented before both houses of the Parliament. Though NCDC has internal protocols and various committees setup to scrutinize proposals and to periodically monitor and assess sector/section specific exposures and risks involved.

Rating Sensitivity

­ Continued support from the Government of India Changes in asset quality metrics Improvements in profitability and scale of operations

Liquidity Position

Adequate

­Acuite believes that National Co-operative Development Corporation has an adequately place liquidity position marked by a total sanctioned limit of Rs. 76,345 Cr. as on May 31, 2025. Out of which the total utilisation has been to the tune of Rs. 59,283 Cr.  NCDC additionally has cash and bank balances of Rs 21.84 Cr. as on March 31, 2025 (Prov.).

Outlook: Stable

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Other Factors affecting Rating

­None

Key Financials - Standalone / Originator

­ Particulars Unit FY25 (Prov) FY24 (Actual) Total Assets Rs. Cr. 63670.48 37793.92 Total Income* Rs. Cr. 1419.95 953.68 PAT Rs. Cr. 806.67 573.93 Net Worth** Rs. Cr. 7271.42 5849.63 Return on Average Assets (RoAA) (%) 1.59 1.71 Return on Average Net Worth (RoNW) (%) 12.30 10.21 Debt/Equity Times 7.45 5.33 Gross NPA (%) 0.71 1.12 Net NPA (%) 0.00 0.00 *Total income equals to Net Interest Income plus other income. **Networth here means NCDC Corpus/funds

Status of non-cooperation with previous CRA (if applicable):

­Not Applicable

Any other information

­None

Applicable Criteria

• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Banks And Financial Institutions: https://www.acuite.in/view-rating-criteria-45.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm

Note on complexity levels of the rated instrument

­In order to inform the investors about complexity of instruments, Acuité has categorized such instruments in three levels: Simple, Complex and Highly Complex. Acuite’s categorisation of the instruments across the three categories is based on factors like variability of the returns to the investors, uncertainty in cash flow patterns, number of counterparties and general understanding of the instrument by the market. It has to be understood that complexity is different from credit risk and even an instrument categorized as 'Simple' can carry high levels of risk. For more details, please refer Rating Criteria “Complexity Level Of Financial Instruments” on www.acuite.in.

Rating History

Date Name of Instruments/Facilities Term Amount (Rs. Cr) Rating/Outlook 23 Oct 2024 Line of Credit Short Term 3000.00 ACUITE A1+ (Assigned) Line of Credit Short Term 100.00 ACUITE A1+ (Assigned) Cash Credit Short Term 11000.00 ACUITE A1+ (Assigned) Short-term Loan Short Term 300.00 ACUITE A1+ (Assigned) Working Capital Demand Loan (WCDL) Short Term 600.00 ACUITE A1+ (Assigned) Short-term Loan Short Term 1500.00 ACUITE A1+ (Assigned) Short-term Loan Short Term 100.00 ACUITE A1+ (Assigned) Short-term Loan Short Term 4000.00 ACUITE A1+ (Assigned) Short-term Loan Short Term 500.00 ACUITE A1+ (Assigned) Short-term Loan Short Term 2000.00 ACUITE A1+ (Assigned) Proposed Short Term Loan Short Term 9040.00 ACUITE A1+ (Assigned) Line of Credit Short Term 400.00 ACUITE A1+ (Assigned) Line of Credit Short Term 100.00 ACUITE A1+ (Assigned) Cash Credit Short Term 4800.00 ACUITE A1+ (Assigned) Line of Credit Short Term 3060.00 ACUITE A1+ (Assigned) Line of Credit Short Term 20000.00 ACUITE A1+ (Assigned) Line of Credit Short Term 8500.00 ACUITE A1+ (Assigned) Line of Credit Short Term 1000.00 ACUITE A1+ (Assigned) Term Loan Long Term 950.00 ACUITE AAA | Stable (Assigned) Term Loan Long Term 3300.00 ACUITE AAA | Stable (Assigned) Term Loan Long Term 300.00 ACUITE AAA | Stable (Assigned) Proposed Long Term Loan Long Term 3450.00 ACUITE AAA | Stable (Assigned)

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Annexure - Details of instruments rated

Lender’s Name ISIN Facilities Date Of Issuance Coupon Rate Maturity Date Quantum (Rs. Cr.) Complexity Level Rating Punjab National Bank Not avl. / Not appl. Cash Credit 19 Aug 2023 Not avl. / Not appl. Not avl. / Not appl. 11000.00 Simple ACUITE A1+ | Reaffirmed National Bank for Agriculture and Rural Development (NABARD) Not avl. / Not appl. Cash Credit 13 Dec 2024 Not avl. / Not appl. Not avl. / Not appl. 5200.00 Simple ACUITE A1+ | Reaffirmed National Bank for Agriculture and Rural Development (NABARD) Not avl. / Not appl. Cash Credit 13 Dec 2024 Not avl. / Not appl. Not avl. / Not appl. 2000.00 Simple ACUITE A1+ | Assigned South Indian Bank Not avl. / Not appl. Line of Credit 28 Aug 2024 Not avl. / Not appl. 11 Aug 2025 100.00 Simple ACUITE A1+ | Reaffirmed UCO Bank Not avl. / Not appl. Line of Credit 22 Nov 2024 Not avl. / Not appl. Not avl. / Not appl. 2000.00 Simple ACUITE A1+ | Reaffirmed Union Bank of India Not avl. / Not appl. Line of Credit 23 Sep 2024 Not avl. / Not appl. 10 Sep 2025 3060.00 Simple ACUITE A1+ | Reaffirmed State Bank of India Not avl. / Not appl. Line of Credit 13 Aug 2024 Not avl. / Not appl. Not avl. / Not appl. 20000.00 Simple ACUITE A1+ | Reaffirmed Indusind Bank Ltd Not avl. / Not appl. Line of Credit 08 Jan 2025 Not avl. / Not appl. Not avl. / Not appl. 1000.00 Simple ACUITE A1+ | Reaffirmed Bank of India Not avl. / Not appl. Line of Credit 25 Jun 2024 Not avl. / Not appl. 24 Jun 2025 8500.00 Simple ACUITE A1+ | Reaffirmed Bank of Baroda Not avl. / Not appl. Line of Credit 11 Mar 2024 Not avl. / Not appl. Not avl. / Not appl. 3000.00 Simple ACUITE A1+ | Reaffirmed Karnataka Bank Ltd Not avl. / Not appl. Line of Credit 28 Mar 2024 Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE A1+ | Reaffirmed Bank of Baroda Not avl. / Not appl. Line of Credit 11 Mar 2024 Not avl. / Not appl. Not avl. / Not appl. 1500.00 Simple ACUITE A1+ | Assigned Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4015.00 Simple ACUITE AAA | Stable | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Long Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 2000.00 Simple ACUITE AAA | Stable | Assigned Not Applicable Not avl. / Not appl. Proposed Short Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 1140.00 Simple ACUITE A1+ | Reaffirmed Not Applicable Not avl. / Not appl. Proposed Short Term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 21500.00 Simple ACUITE A1+ | Assigned Punjab National Bank Not avl. / Not appl. Short-term Loan 07 Dec 2024 Not avl. / Not appl. Not avl. / Not appl. 4000.00 Simple ACUITE A1+ | Reaffirmed Central Bank of India Not avl. / Not appl. Short-term Loan Not avl. / Not appl. Not avl. / Not appl. Not avl. / Not appl. 4000.00 Simple ACUITE A1+ | Reaffirmed Indian Bank Not avl. / Not appl. Short-term Loan 19 Jun 2023 Not avl. / Not appl. Not avl. / Not appl. 500.00 Simple ACUITE A1+ | Reaffirmed ICICI Bank Ltd Not avl. / Not appl. Short-term Loan 03 Jul 2024 Not avl. / Not appl. 26 Jun 2025 2000.00 Simple ACUITE A1+ | Reaffirmed Central Bank of India Not avl. / Not appl. Short-term Loan 04 Feb 2025 Not avl. / Not appl. Not avl. / Not appl. 1400.00 Simple ACUITE A1+ | Reaffirmed Sumitomo Mitsui Banking Corporation Not avl. / Not appl. Short-term Loan 03 Feb 2025 Not avl. / Not appl. 31 Jan 2026 1500.00 Simple ACUITE A1+ | Reaffirmed Deutsche Bank Not avl. / Not appl. Short-term Loan 23 Aug 2024 Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE A1+ | Reaffirmed HDFC Bank Ltd Not avl. / Not appl. Short-term Loan 23 Dec 2024 Not avl. / Not appl. Not avl. / Not appl. 300.00 Simple ACUITE A1+ | Reaffirmed Punjab and Sind Bank Not avl. / Not appl. Short-term Loan 21 Dec 2024 Not avl. / Not appl. Not avl. / Not appl. 1000.00 Simple ACUITE A1+ | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 19 Aug 2023 Not avl. / Not appl. Not avl. / Not appl. 950.00 Simple ACUITE AAA | Stable | Reaffirmed Indusind Bank Ltd Not avl. / Not appl. Term Loan 08 Jan 2025 Not avl. / Not appl. Not avl. / Not appl. 35.00 Simple ACUITE AAA | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 27 Nov 2024 Not avl. / Not appl. 27 Nov 2029 1000.00 Simple ACUITE AAA | Stable | Reaffirmed Punjab National Bank Not avl. / Not appl. Term Loan 27 Nov 2024 Not avl. / Not appl. 27 Nov 2029 2000.00 Simple ACUITE AAA | Stable | Reaffirmed Federal Bank Not avl. / Not appl. Working Capital Demand Loan (WCDL) 05 Jun 2024 Not avl. / Not appl. Not avl. / Not appl. 100.00 Simple ACUITE A1+ | Reaffirmed

Contacts

Mohit Jain Chief Analytical Officer - Rating Operations Nattasha Venkatesh Associate Analyst - Rating Operations	Contact details exclusively for investors and lenders Mob: +91 8591310146 Email ID: analyticalsupport@acuite.in

About Acuité Ratings & Research

­Acuité is a full-service Credit Rating Agency registered with the Securities & Exchange Board of India (SEBI). The company received RBI Accreditation as an External Credit Assessment Institution (ECAI) for Bank Loan Ratings under BASEL-II norms in the year 2012. Acuité has assigned ratings to various securities, debt instruments and bank facilities of entities spread across the country and across a wide cross section of industries. It has its Registered and Head Office in Kanjurmarg, Mumbai. Disclaimer: An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser's or investor's independent assessment of whether to buy, sell or hold any security. Ratings assigned by Acuité are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with respect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind, arising from the use of its ratings. Ratings assigned by Acuité are subject to a process of surveillance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité. Please visit https://www.acuite.in/faqs.htm to refer FAQs on Credit Rating. Note: None of the Directors on the Board of Acuité Ratings & Research Limited are members of any rating committee and therefore do not participate in discussions regarding the rating of any entity.