India Ratings and Research (Ind-Ra) has affirmed IndusInd Bank Limited's (IBL) Long-Term Issuer Rating at 'IND AA+' with a Stable Outlook and Short-Term Issuer Rating at 'IND A1+'.
The ratings reflect the following factors: the improving deposit and liability profile; the easing of the agency's concerns on asset-quality metrics and the ability of the bank to absorb stresses, including COVID-19 impact, and strengthened capital buffers.
The rating also factors in IBL's leadership position in certain asset classes (such as vehicle financing and microfinance) and its robust pre-provision operating buffers. IBL has a granular loan portfolio, a diversified income profile, and an experienced management team; all these factors, in the agency's opinion, are the bank's key strengths. The bank's extant three-year strategy envisages a significant role for digital banking across banking functions and significant improvements in its liability profile so as to close the gap between the bank and its larger peers.
The AT1 bonds rating reflects the bank's strong standalone credit profile, along with its ability to service coupons and manage principal write-down risk on its debt capital instruments. To arrive at the rating, Ind-Ra has considered the discretionary component, coupon omission risk and the write-down/conversion risk as key parameters. The agency recognises the unique going-concern loss absorption features that these bonds carry and differentiates them from the bank's senior debt, factoring in a higher probability of an ultimate loss for investors in these bonds. Ind-Ra envisages coupon deferrals and principal write-down risk as a remote possibility in view of the bank's adequate revenue reserve and operating buffers.
Shares of IndusInd Bank Limited was last trading in BSE at Rs. 806.20 as compared to the previous close of Rs. 786.65. The total number of shares traded during the day was 196531 in over 6810 trades.
The stock hit an intraday high of Rs. 815.85 and intraday low of 790.10. The net turnover during the day was Rs. 158464332.00.