S&P upgrades outlook on Indian Bank to stable on funding, liquidity profile

The rating agency affirmed Indian Bank's "BBB-" ratingm but ruled out any upward revision in the next one to two years

Rating agency Standard and Poor's has revised the outlook on Indian Bank from “negative” to “positive” on expectation that it's capital base should be able to withstand modest asset quality pressures over the next 24 months.

Chennai-based public sector lender's capitalisation has strengthened owing to its recent equity capital raising and improving profitability. It's capital adequacy stood at 15.92 per cent in June 2021, up from 13.45 per cent in June 2020.

Indian Bank is likely to maintain its solid funding and liquidity profile over the next 18-24 months, S&P said in a statement on Friday.

The rating agency affirmed Indian Bank's “BBB-”