CRISIL has reaffirmed 'AAA/Stable' rating on the debt instruments of Indian Bank continues to reflect the expectation of strong support for the bank from its majority owner, the Government of India (GoI), both on an ongoing basis and in the event of distress.

The rating also factors in the bank's strong capitalization, and adequate earnings and resource profiles. These rating strengths are partially offset by Indian Bank's average asset quality and the geographic concentration in its operations.

CRISIL believes that Indian Bank's healthy financial risk profile will continue to offset the asset-quality challenges faced by the bank. Furthermore, the bank will continue to get need-based support from GoI. The outlook may be revised to 'Negative' if the bank's earnings profile weakens significantly, or if its asset quality deteriorates.

Shares of the bank declined Rs 0.35, or 0.32%, to trade at Rs 108.15. The total volume of shares traded was 12,215 at the BSE (11.30 a.m., Thursday).