IndusInd Bank: Crisil upgrades outlook; stock in short-term upmove

Shares of IndusInd Bank Ltd are in focus today after Crisil upgraded outlook to stable from negative. Crisil revised the outlook on IndusInd Bank’s long-term debt instruments to stable from Negative, while reaffirming ratings at CRISIL AA+.

Following are the details of the upgrade:

Infrastructure Bonds: Rs 1,500 Cr infrastructure bonds reaffirmed at CRISIL AA+/Stable, outlook revised to stable from negative.

Tier-2 Bonds: Rs 4,000 crore Basel III compliant Tier-2 bonds reaffirmed at CRISIL AA+/Stable. Outlook revised to stable from negative.

Short-Term Rating: Short-term fixed deposits and certificates of deposits reaffirmed at CRISIL A1+.

Credit Profile: The shift to Stable removes the earlier Negative outlook while maintaining the bank’s existing long-term credit rating.

The revision in outlook factors in the gradual improvement in the earnings profile, stabilisation in the deposit franchise with increasing share of granular deposits, and the strategic shift in lending to relatively stable asset segments.

The bank delivered a stronger performance in the first quarter of fiscal 2027, with net profit rising to Rs 1,037 crore from Rs 889 crore in fiscal 2026. Return on assets (RoA) also improved significantly to 0.8%, compared with 0.2% in the previous fiscal year.

The improvement was primarily driven by lower credit costs and stronger operating profitability. Credit cost moderated to around 1% in Q1 FY27, from 1.5% in fiscal 2026. Meanwhile, pre-provisioning profit (PPoP) as a percentage of average assets increased to 2.0%, compared with 1.7% in the previous fiscal year.

The bank’s improved profitability metrics indicate a gradual strengthening in underlying earnings. However, sustaining this improvement in profitability and maintaining control over credit costs will remain key monitorables going forward.

Stock movement 

In the previous session, the IndusInd Bank stock fell 0.15% to Rs 1011.95 with its market cap declining to Rs 78,844 crore on BSE. However, the stock has gained 43% from the 52-week low of Rs 710.85 on September 26, 2025.

IndusInd Bank shares are trading lower than the 5 day, 10 day, 30 day but higher than the 20 day, 50 day, 100 day and 200 day moving averages.

In a year, the stock of IndusInd Bank has gained 29 per cent and has gained 13% in three months.