Credit rating agency ICRA has upgraded the rating for Dvara Kshetriya Gramin Financial Services (Dvara KGFS) one notch up from BBB- to BBB. The outlook on the rating is set at stable. The rating upgrade reinforces the strength of Dvara KGFS operations and signifies its strong position in meeting its financial obligations.
Bangalore, 9th August 2019:Credit rating agency ICRA upgraded the long-term rating of Dvara KGFS one notch up from BBB- to BBB. The rating upgrade is for both the Line of Credit (LOC) and Subordinated Debenture Programme of Dvara KGFS, with the outlook on the long-term rating set at stable.
The rating upgrade comes on the back of a recent equity infusion of 97 crores in April 2019, which allowed the company to diversify its operations into newer geographies, strengthen its presence in existing geographies and solidify its capital base for further growth. The rating upgrade reinforces the strong collection efficiency witnessed across Dvara KGFS operations and is an affirmation of the management team’s ability to execute the company’s growth plans while maintaining its strong financial position.
Commenting on the rating upgrade, Joby C O, Chief Executive Officer, Dvara KGFS, said “This upgrade by ICRA is an endorsement to the credibility that the Company has earned based on its performance in the past many years, and a strong risk framework that has been put in place. This rating upgrade is hugely positive in the current market and an acknowledgement to the management’s clear intent and focus on performance. This helps to reinforce the confidence the banks have put on us. We are hoping that this helps our fund-raising effort in the next quarters. “
About Dvara KGFS
Dvara KGFS, a systematically important NBFC in the Dvara Group regulated by RBI, works with a mission to maximise the financial well-being of every individual and every enterprise by providing complete access to financial services in remote rural India. Dvara KGFS has a strong presence in Tamil Nadu, Uttarakhand, Karnataka, Chhattisgarh and Odisha, spread across 42 districts with 258 branches and more than 1 million enrolled customers. It has started its operations in Jharkhand recently.