Moody's assigns Baa3 rating to Indusind Bank on strong profitability and capital

Global rating agency Moody's has assigned a Baa3 rating to private sector lender Indusind Bank and has kept the outlook stable citing strong profitability and healthy asset quality. The agency has assigned a long-term local and foreign currency bank deposit and issuer rating of Baa3 to the lender. The bank's baseline credit assessment (BCA) and adjusted BCA have been assigned a rating of ba1, the agency said in a note Thursday.

"The rating factors in the bank's strong profitability and capital, as well as healthy asset quality," it said, adding factors in the risks to asset quality from the strong credit growth over the last few years and a moderate funding profile compared to other rated lenders. The asset quality deterioration because of lending to a large troubled finance company, which is at a high of risk of becoming non-performing, is already factoring into the rating agency's assessment of asset quality of the lender.