Moody's places IndusInd bank credit assessment on review for downgrade

Tue, 18 March 2025

10:57

Concerns over internal control discrepancies in derivative accounts and retail loan stress of IndusInd bank has prompted rating agency Moody's to place the bank's baseline credit assessment under review for downgrade.

The bank has discovered a USD 175 million accounting discrepancy related to currency derivatives. Shares have dropped over 28 per cent since the Reserve Bank of India decided to extend the term of CEO Sumant Kathpalia's by a year.

Investors Service of the rating agency has placed IndusInd Bank's Ba1 long-term foreign and local currency deposit and issuer ratings with a stable outlook while placing its ba1 Baseline Credit Assessment (BCA) under review for a potential downgrade following the bank's disclosure of discrepancies in its derivatives portfolio, which could result in a Rs 2,000 crore loss in the March 2025 quarter. -- ANI

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