CRISIL places IndusInd Bank's long-term debt ratings on 'watch negative'

The domestic rating agency CRISIL has placed the long-term debt instruments of private sector lender IndusInd Bank on ‘Rating Watch with Negative Implications’. This category of long-term instruments consists of ₹4,000 crore worth of Tier II bonds and ₹1,500 crore in infrastructure bonds.

The decision by the rating agency comes in light of the recent resignations of the bank's two top key management personnel, along with the announcement that the internal audit department is reviewing the microfinance (MFI) sector to investigate specific concerns raised during the finalization of accounts. Furthermore, the bank had reported an accounting discrepancy related to derivatives back in March.

CRISIL has observed that there hasn't been a significant outflow of overall deposits in the past two months. As of 31 March 2025, the bank reported deposits totaling ₹4.11 trillion and a CASA (current account and savings account) ratio of 32.8 per cent, compared to ₹4.09 trillion and approximately 34.9%, respectively, as of 31 December 2024.

Nevertheless, there has been some reduction in deposits from retail and small business clients during this timeframe. As of 31 March 2025, these deposits were recorded at ₹1.85 trillion, down from ₹1.89 trillion as of 31 December 2024.

“Crisil Ratings will monitor and engage with the management to understand the progress with regard to steps taken towards strengthening internal financial controls and to ensure stability and continuity of operations. Further, the impact on profitability and changes in deposit profile will be closely monitored. Crisil Ratings shall resolve the rating watch once there is clarity on the above aspects,” said the rating agency.

IndusInd Bank share price today

IndusInd Bank share price today rose 2.5%, the stock touched an intraday high of ₹844.30 apiece, and an intraday low of ₹822.25 apiece on the BSE. However, during Thursday's session, IndusInd Bank share price slipped into red.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, IndusInd Bank share price is in a downtrend and since last couple of weeks have been trading in a range. As of now strong support is at ₹800 below which prices will resume downside towards ₹750, on the flip side, above ₹850 some positive momentum can be expected towards ₹900.

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