ICRA flags asset quality pressure risk for IDBI Bank due to pandemic

While upgrading IDBI Bank’s ratings on sustained improvement in credit profile, rating agency ICRA flagged concerns over high asset quality pressures of the lender in the near term due to the pandemic. It said the bank’s return metrics could remain sub-optimal despite improvement in profitability.
 
The agency upgraded the rating for the Mumbai-based private lender’s bonds, debentures and tier-II capital instruments from “A” to “A+”. The ratings are based on standalone credit profile, as key investors Life Insurance Corporation of India (49.24 per cent) and the Government of India (45.48 per cent) want to offload their stake in the