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IndusInd Bank on Tuesday said global rating agency Moody’s has placed the bank’s baseline credit assessment (BCA) under review for a possible downgrade.
Photograph: Anushree Fadnavis/Reuters
The rating review comes days after IndusInd Bank disclosed a Rs 2,100 crore discrepancy in accounting with an estimated impact of 2.35 per cent of the bank’s net worth.
“Moody’s has placed IndusInd’s Ba1 Baseline Credit Assessment (BCA) and adjusted BCA under review for downgrade,” IndusInd Bank said in a regulatory filing.
Baseline credit assessments are based on the entity’s standalone financial health, without considering any support it might get from related companies.
However, the filing said, Moody’s has affirmed ‘Ba1/NP (Stable)’ to the bank’s long-term (LT) and short-term (ST) foreign and local currency (LC) bank deposits and issuer ratings and counterparty risk ratings (CRRs).
The rating agency has also affirmed long-term and short-term counterparty risk (CR) assessments.
Meanwhile, the Reserve Bank on Saturday assured customers that IndusInd Bank remains ‘well-capitalised’, even as it directed the bank’s board to complete remedial action relating to accounting discrepancy within this month.
There was no need for depositors to react to the speculative reports at this juncture, RBI had said in its statement.
The central bank assured customers and investors that the bank’s financial health remains stable and is being monitored closely by it.
