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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Non Convertible Debentures (NCD) | 112.26 | Not Applicable | Withdrawn | - |
| Total Outstanding | 0.00 | - | - |
| Total Withdrawn | 112.26 | - | - |
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Rating Rationale |
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Acuité has withdrawn the long-term rating on the Rs. 112.26 Cr. Principal Protected Market Linked Debentures of Unity Small Finance Bank Limited.
The rating is being withdrawn on account of a request received from the company and NOC received from the debenture trustee. The rating withdrawal is in accordance with Acuité’s policy on rating withdrawals. The rating is not applicable as the NCD facility of Rs. 112.26 crore has been redeemed. |
| About the company |
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The Reserve Bank of India (RBI) issued a Small Finance Bank licence on October 12,2021 to the consortium of the CFSL, lending arm of Centrum Group and Resilient Innovations Private Ltd. (RIPL) (‘Bharat Pe’). The new SFB has been incorporated as ‘Unity Small Finance Bank Limited (UNITY SFB) on August 25,2021 with registered office in New Delhi. As a part of arrangement to operationalize this license, all the assets and liabilities of CFSL and CML has been transferred to UNITY SFB for 51% stake with effect from November 1, 2021 while Bharat Pe has infused capital for its 49% stake. CFSL, is the promoter company for UNITY SFB and Bharat Pe with balance 49% stake is classified as ‘Person acting in Concert’. PMC bank was amalgamated with Unity Small Finance Bank in accordance with the RBI scheme.
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| Unsupported Rating |
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Not Applicable
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| Analytical Approach |
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Not Applicable
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| Key Rating Drivers |
| Strength |
| Not Applicable
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| Weakness |
| Not Applicable
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| Rating Sensitivity |
| Not Applicable |
| All Covenants |
| Not Applicable |
| Liquidity Position |
| Not Applicable |
| Outlook: Not Applicable |
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| Other Factors affecting Rating |
| Not Applicable |
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| Status of non-cooperation with previous CRA (if applicable): |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• 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 |
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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.
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