ICRA has reaffirmed a rating of 'A1+' to the revised short term debt programme of Rs 75 billion (increased from Rs 60 billion) of Reliance Capital.

Reliance Capital's (RCL) credit strengths are partially offset by its moderate track record in commercial lending operations, moderate profitability indicators, elevated albeit stable levels of asset quality and high investment in Reliance group companies. Even though sizeable part of the reported net worth is engaged in group investments, the intrinsic value in some of the investments partly alleviate credit. In addition, managing the asset quality going forward given the shift towards relatively riskier higher yielding segments shall remain a key rating sensitivity. 

As on Mar-14, Reliance Capital's consolidated commercial financing book was to the tune of Rs 136.70 billion (including Reliance Home Finance's home loan book), constituted ~33% by Loan Against Property, ~16% by home loans, 27% by SME advances, 13% by commercial vehicle and commercial equipment loans and the remaining being Car loans, infrastructure advances, micro finance, gold loans and other smaller advances.

Reliance Capital continues to have a sizeable investment book to the tune of ~Rs 135.69 billion as at March 31, 2014 (~Rs 13675 as at March 2013) primarily deployed in holding companies, financial services and media companies within and outside the group. RCL's liquidity position is comfortable with no negative cumulative mismatches in the 1 year bucket. The refinancing risk continues to remain low as company has access to diversified source of funds and holds significant un-utilized bank lines ensuring a comfortable liquidity position. 

Reliance Capital, on standalone basis reported a net profit after tax of Rs 4.09 billion as compared with a net profit after tax of Rs 6.62 billion in FY13. RCL's asset quality indicators on a standalone basis improved with Gross NPA% and Net NPA% at ~1.9% and 1.4% respectively as on March 31, 2014 from 2.1% and 1.4% as on March 31, 2013. Return on net worth stood at ~ 3.54% for FY 14 (~5.87% for FY 13). 

Shares of the company gained Rs 30.75, or 5.22%, to settle at Rs 620.30. The total volume of shares traded was 2,397,903 at the BSE (Wednesday).