Credit rating agency, ICRA has upgraded the rating assigned to Subordinated Tier II Bonds of IndusInd Bank (IBL) to AA from LAA- (Stable). ICRA has also upgraded the rating assigned to Upper Tier II Bonds of IBL to AA- from LA+ (Stable). The outlook on the ratings continues to be Stable.
The revision in ratings is supported by steady improvement in financial and operational performance of the bank, aided by healthy Net Interest Margins in FY11, following the increase in share of retail portfolio and re pricing of floating rate portfolio, improvement in core fee income levels, stable operating expenses despite significant branch expansion, and strong net profitability on the back of higher core operating profits and lower credit costs.
The bank’s net profit for the quarter ended June 30, 2011 has surged by 51.99% at Rs 180.18 crore as compared to Rs 118.55 crore for the quarter ended June 30, 2010. Its total income has increased by 47.99% at Rs 1379.98 crore for the quarter under review from Rs 932.5 crore for the quarter ended June 30, 2010.
