IndusInd Bank falls 4.3% on ratings downgrade

MUMBAI: IndusInd Bank shares tumbled 6.50 per cent on Wednesday after ratings downgrade, despite a strong bounce back in the market. The private sector bank ended the day 4.28 per cent lower at Rs 32.40 on the BSE.

The selling pressure on IndusInd continued as rating agencies downgraded bonds issued by banks on concerns over their financial position, bankers said. However, the Bankex of Bombay Stock Exchange was the top gainer of the session, gaining 5.96 per cent. After opening firm at Rs 34.05, IndusInd hit an intraday low of Rs 31.55. The stock touched a high of Rs 34.05.

Last week, Fitch had issued a warning regarding a possible downgrade of UCO Bank, IndusInd and Dena Bank. Ratings action on Dena Bank is expected in the next few days. With regard to IndusInd, Fitch has lowered tier-II bonds and national short-term ratings, but downgraded the upper tier-II bonds by two notches.