Mumbai, March 7 -- India Ratings & Research stated that the ratings factor in FedFina's increased scale of franchise with a granular loan book, adequate capital and liquidity buffers, and diversified funding profile as of 9MFY26.

The ability to improve profitability with stable asset quality particularly in the small-ticket loan against property (LAP) segment remains a rating monitorable.

It further said that the strengthening of FBL's credit profile, along with significant scaling of Fedfina's franchise while maintaining adequate capital and profitability buffers and stable asset quality will lead to a positive rating action.

However, any deterioration in the credit profile of the parent or a dilution of the majority ownership (below ...