IndusInd Bank shares fall over 3 pc after downgrade
New Delhi: Shares of IndusInd Bank on Wednesday fell by over 3 per cent after Moody's Investors Service revised down its outlook on the company to 'negative' from 'stable'.
The scrip declined 3 per cent to Rs 1,252.50 on the BSE.
At the NSE, it fell 3.16 per cent to Rs 1,251.70.
Concerns over a further deterioration in asset quality have led Moody's to revise down its outlook on IndusInd Bank to 'negative' from 'stable' on Tuesday.
The private sector bank's rating has been affirmed at the earlier one of 'Baa-3/P-3', Moody's said in a note.
Baa3 denotes the lowest rating in investment grade on long-term corporate obligation which carries moderate risks.
"The outlook has been revised to negative to account for the risk of further asset quality deterioration," it said.
Moody's noted that the bank has seen a deterioration in asset quality, particularly in the corporate segment over the last few quarters, and attributed the same to tight refinancing conditions faced by borrowers.