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Informist, Thursday, Jul. 9, 2026

 

--ICRA upgrades YES Bank's infra, tier-2 bonds rating to AA from AA- 

 

MUMBAI – Rating agency ICRA has upgraded the ratings on YES Bank's infrastructure bonds and Basel-III tier-II bonds to 'AA' from 'AA-', while maintaining a stable outlook, the bank informed stock exchanges on Thursday. The upgrade reflects the improvement in the lender's financial profile, driven by a rising share of granular loans and improving asset quality indicators, ICRA said in its rating rationale. The rating agency added that the bank's profitability continues to be supported by sustained recoveries from security receipts. 

 

Stakeholders such as Sumitomo Mitsui Banking Corporation and State Bank of India strengthen YES Bank's shareholder profile, it said. "... the bank is expected to draw some synergies from the pool of SMBC's (Sumitomo Mitsui Banking Corporation's) customers and enhance its revenue stream, which will help improve its earnings profile," ICRA said. 

 

A lower fresh non-performing advances generation rate, coupled with sustained recoveries from stressed exposures, has enabled the bank to report lower net credit costs, supporting its overall earnings profile, ICRA said. However, the ratings remain constrained by YES Bank's "below-average interest spreads," primarily due to a high share of low-yielding assets and an elevated cost-to-income ratio, ICRA said.

 

The impending judgement of the Supreme Court on the writeback of the additional tier-I bonds amounting to INR 84.15 billion remains a key monitorable, ICRA said. 

 

YES Bank reported a net profit of INR 10.68 billion for the March quarter on total income of INR 93.81 billion. Thursday, the bank's shares closed 0.9% higher at INR 23.64 on the National Stock Exchange.  End

 

Reported by Nandini Sinha

Edited by Saji George Titus

 

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