{"id":53403,"date":"2026-04-17T13:21:20","date_gmt":"2026-04-17T07:51:20","guid":{"rendered":"https:\/\/financialtelegraph.in\/index.php\/2026\/04\/17\/care-keeps-fusion-finance-rating-at-a-amid-asset-quality-improvement\/"},"modified":"2026-04-17T13:21:20","modified_gmt":"2026-04-17T07:51:20","slug":"care-keeps-fusion-finance-rating-at-a-amid-asset-quality-improvement","status":"publish","type":"post","link":"https:\/\/financialtelegraph.in\/index.php\/2026\/04\/17\/care-keeps-fusion-finance-rating-at-a-amid-asset-quality-improvement\/","title":{"rendered":"CARE Keeps Fusion Finance Rating at \u2018A\u2019 Amid Asset Quality Improvement"},"content":{"rendered":"
\n

\"CARE<\/p>\n

New Delhi [India], April 17:<\/strong> CARE Ratings has reaffirmed its \u2018CARE A\u2019 (Stable) rating for Fusion Finance Limited\u2019s debt instruments, supported by a sequential improvement in asset quality.<\/p>\n

The rating action covers \u20b9150 crore of non-convertible debentures and \u20b91,500 crore of long-term bank facilities, both retained at \u2018CARE A\u2019 (Stable), reflecting stable operational and financial\u00a0performance alongside strengthening asset quality.<\/p>\n

The stable outlook factors in sequential improvement in Fusion\u2019s asset quality, collection efficiency and profitability. CARE also took note\u00a0of Fusion\u2019s\u00a0capital raise of \u20b9800 crore that was completed in Q3FY26, supporting its capital profile and providing cushion for growth.\u00a0<\/p>\n

\u2018CARE A\u2019 rating indicates that the instruments\u00a0are considered to have an adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk. The Stable outlook reflects the expectation that the company\u2019s performance will remain steady over the near- to medium-term.<\/p>\n

This reaffirmation\u00a0reflects\u00a0Fusion Finance\u2019s focus on maintaining financial discipline, strengthening its portfolio quality, and sustaining growth momentum in its core lending business. The company\u00a0has gradually strengthened its\u00a0performance\u00a0on core metrics backed by\u00a0an improving credit profile, with key financial and operating metrics reflecting a continued recovery in asset quality and overall business momentum.<\/p>\n

The company\u00a0restored its profitability in Q3 FY26, reporting a PAT of \u20b914 crore\u00a0(including one-time impact of labor codes), supported by improving asset quality and calibrated growth, reflecting a turnaround in its earnings trajectory. The company also maintained a strong capital and liquidity position, with a CRAR\u00a0(capital to risk-weighted asset ratio)\u00a0of 38.8% and liquidity of \u20b91,783 crore, while raising \u20b92,522 crore\u00a0in the third quarter\u00a0through borrowings and a rights issue, strengthening its overall financial flexibility.<\/p>\n

The rights issue infusion further\u00a0strengthened Fusion\u2019s\u00a0balance sheet, with continued lender support signalling improved external confidence in the company\u2019s credit profile. Operational metrics also showed steady improvement, with collection efficiency rising to 99.14% in Q3\u00a0compared to\u00a098.77% in Q2, while the new book constituted 79% of the portfolio, recording a collection efficiency of 99.56% in Q3 FY26.\u00a0<\/p>\n

On the growth front, disbursements increased to \u20b91,594 crore in Q3 FY26 from \u20b91,298 crore in Q2 FY26, with disbursements involving up to two lenders remaining stable at 80%, reflecting sustained portfolio quality and disciplined lending practices.\u00a0<\/p>\n

At the same time, credit costs declined for the fifth consecutive quarter to \u20b979 crore in Q3 FY26 from \u20b9571 crore in Q3 FY25, while GNPA further improved to 4.38% in Q3 FY26 from 12.58% in Q3 FY25,\u00a0reflecting\u00a0the continued strengthening of the company\u2019s asset quality.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

New Delhi [India], April 17: CARE Ratings has reaffirmed its \u2018CARE A\u2019 (Stable) rating for Fusion Finance Limited\u2019s debt instruments, supported by a sequential improvement in asset quality. The rating … Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":53404,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[673],"tags":[674],"class_list":["post-53403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-finance","entry"],"_links":{"self":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/posts\/53403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/comments?post=53403"}],"version-history":[{"count":0,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/posts\/53403\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/media\/53404"}],"wp:attachment":[{"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/media?parent=53403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/categories?post=53403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/financialtelegraph.in\/index.php\/wp-json\/wp\/v2\/tags?post=53403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}