ICRA Reaffirms NPCI's Top Credit Rating On Strong FY25 Performance

ICRA has reaffirmed its highest short-term rating of A1+ to the National Payments Corporation of India, underscoring the significance of the payments infrastructure major in India's digital economy. The rating also applies to an enhanced borrowing limit of Rs 15,000 crore, up from Rs 12,500 crore earlier.

At the heart of ICRA's rating lies NPCI's dominance in the clearing and settlement of retail payments, from RuPay to UPI and NACH to Bharat BillPay. Its wholly-owned subsidiary, NPCI Bharat Billpay Ltd., is part of the consolidated analysis, reflecting tight operational linkages.

NPCI processed 21,360 crore transactions in fiscal year 2025, a 33% jump from 16,100 crore in fiscal 2024. Profit after tax for fiscal 2025 rose sharply to Rs 1,552 crore from Rs 1,095 crore last year, while profitability ratios remained robust at nearly 47.5% of operating income.

ICRA also highlighted NPCI's nil leverage, healthy net worth of Rs 6,412 crore, and its Rs 17,892 crore settlement guarantee fund, mitigating default risks among members.

NPCI's business model remains anchored in fees from regulated financial entities and products with low revenue concentration. While competition from new players remains a distant concern, any change in RBI's regulatory stance or sharp fall in transaction volumes could weigh on its ratings.

With Rs 2,288 crore in cash and over Rs 13,600 crore in credit lines, liquidity is strong, as per the note.

Founded in 2008 and promoted by the RBI and Indian Banks’ Association, NPCI’s ownership now spans 65 entities, including major public, private, foreign, and regional banks.