"On the other hand, the ratings are capped by Alliance’s moderate financial performance, liquidity and funding levels."
RAM says the company is vigilant about the health of its loan portfolio and has reported better than average gross non performing loans of 3.31 percent by December 31, 2007. Loans were about 64 percent of total assets.
Considering the industry’s generally deteriorating asset quality, RAM Ratings says it has a positive view of Alliance’s ratio.
The company's provisioning level remained superior at 94.92 percent. Its exposure to share trading was a moderate 5.58 percent of total assets while exposure to inventories such as cars and furniture stayed at a 3.73 percent.
Alliance’s good asset quality had allowed it to reduce provisions from 18.04 million rupees at the end of the March 2006 financial yea