Moody's cuts IndusInd Bank's outlook to negative over asset deterioration

While there have been no NPLs in real estate segment so far, the exposure to the property market remains a source of risk, given the broader stress in the realty sector

Moody’s has revised the outlook on IndusInd Bank’s instrument to “negative” from “stable”. This is to account for the risk of further asset quality deterioration. However, it affirmed ratings on foreign and domestic currency deposits, on the back of a strong capital base.

Over the last few quarters, the lender has seen deterioration in its asset quality, particularly in the corporate segment. The major reason for crystallisation of non-performing loans (NPLs) was the tightening of refinancing conditions for borrowers, Moody’s said in a statement.

In particular, the bank has a relatively higher exposure to real estate, as compared to other