CRISIL places IndusInd Bank's long-term debt instruments on 'rating watch'

IndusInd Bank

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26 Aug, 2025 12:21

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Domestic ratings agency Crisil has placed IndusInd Bank’s long-term debt instruments on “rating watch with negative implications”, the private lender said in exchange filing on May 8.

The ratings agency placed the Rs 4,000-crore Tier II Bonds (Under Basel III) and Rs 1,500-crore infrastructure bonds at Crisil AA+/Watch Negative (placed on “rating watch with negative implications”), the release said.

The bank has recently seen the exit of two key managerial personnel and disclosure that the its internal audit department is conducting a review of the microfinance (MFI) business to examine certain concerns brought to its attention during finalisation of accounts, the ratings agency said.

In March, the bank had reported an accounting discrepancy related to derivatives as well.

The bank’s retail and small businesses deposits slipped to Rs 1.85 lakh crore in the March quarter from Rs 1.89 lakh crore in the previous quarter, the agency said.

IndusInd Bank CEO and managing director Sumant Kathpalia resigned on April 29. A day after, deputy CEO Arun Khurana, too, quit.

Kathpalia, a banker for close to 30 years, was appointed CEO in March 2020. He served IndusInd Bank for more than 12 years in different capacities. He was given a one-year extension by the RBI, right before the accounting discrepancies were revealed.

In his resignation letter, Kathpalia said, "I undertake moral responsibility, given the various acts of commission/omission that have been brought to my notice."

On April 30, IndusInd Bank informed the exchanges that the RBI has formally approved the setting up of a "committee of executives" to oversee operations during the leadership transition period.

Soumitra Sen, who heads the consumer banking division, and Anil Rao, the bank's Chief Administrative Officer, are the members of the committee.

At 2.24 pm, the IndusInd back stock was trading at RS 825.40 on the National Stock Exchange, down 1.01 percent from the previous day.