India Ratings Revises IndusInd Bank's Outlook to Stable, affirms 'IND AA+'

India Ratings and Research (Ind-Ra) has revised IndusInd Bank Limited's (IBL) Outlook to Stable from Negative while affirming its Long-Term Issuer Rating at 'IND AA+'. The agency has also affirmed the Short-Term Issuer Rating at 'IND A1+'.

The Outlook revision reflects the following factors: the improvement in IBL's deposit and liability profile; the easing of the agency's concerns on asset-quality metrics; sharper recovery, leading to expectations of moderate credit costs and strengthened capital buffers, as the bank raised about INR53 billion in FY21 (including promoter warrant conversion; total equity raise amounting to 15% of its FY20 net worth); a manageable impact of the COVID-19 led lockdown on its liabilities and an overall manageable impact on the asset quality; and peer-comparable provision buffers.

The affirmation factors in IBL's leadership position in a certain asset classes, strong operating metrics, adequate capital buffers and enhanced ability to raise capital compared to FY20, if required. IBL has a granular loan portfolio, diversified income profile, and experienced management team; all these factors in the agency's opinion provides the bank to navigate covid-19 aftermath while it strives to expand its franchise and scale.

Shares of INDUSIND BANK LTD. was last trading in BSE at Rs.954 as compared to the previous close of Rs. 963.2. The total number of shares traded during the day was 236612 in over 7026 trades.

The stock hit an intraday high of Rs. 968.55 and intraday low of 950.5. The net turnover during the day was Rs. 227037349.

Source : Equity Bulls

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