India Ratings and Research (Ind-Ra) has revised IndusInd Bank Limited's (IBL) Outlook to Negative from Stable while affirming the Long-Term Issuer Rating at 'IND AA+'. The agency has also affirmed the Short-Term Issuer Rating at 'IND A1+'.
The Outlook revision factors in the possible greater challenges for IBL than that for its peers regarding its deposit base, because of its above-average dependence on institutional deposits and funding. This could lead to the bank accessing other avenues of funding such as borrowings and capital market instruments amid the challenging operating environment (COVID-19 led lockdown). The Negative Outlook also factors in the agency's opinion that the bank could witness higher asset quality pressures than in the past in view of its asset mix due to the current lockdown. While IBL has strong profitability and adequate capital buffers, the challenges faced on the valuation side can hinder its ability to raise further capital as and when required.
The rating affirmation reflects IBL's granular loan portfolio, diversified income profile, strong operating buffers, strong management team, leadership position in some asset classes, and higher than peers' core capital levels, which together provide the bank with the ability to absorb credit costs under Ind-Ra's stress tests.
Shares of INDUSIND BANK LTD. was last trading in BSE at Rs.313.25 as compared to the previous close of Rs. 342.3. The total number of shares traded during the day was 1297280 in over 31879 trades.
The stock hit an intraday high of Rs. 350.8 and intraday low of 310.4. The net turnover during the day was Rs. 414967362.