Mumbai, May 17 -- Care Ratings stated that the reaffirmation of the rating assigned to the certificate of deposit (CD) programme of IndusInd Bank Limited (IBL) factors in comfortable capitalisation levels and growing franchise of the bank with focus on retail lending, earning higher yield on advances.

While IBL has historically maintained a healthy earnings track record, profitability moderated in 9MFY25 due to elevated credit costs and a rise in deposit rates. CARE Ratings expects earnings in Q4FY25 to remain subdued due to one-time adjustments from derivative accounting discrepancies and potential implications arising from the ongoing review of the microfinance (MFI) portfolio.

The rating also considers IBL's moderate resource profile...