Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Stock Report

| More

India Ratings and Research (Ind-Ra) has rated Yes Bank Ltd's Basel III AT1 perpetual bonds

Posted On: 2017-10-17 18:48:38

YES Bank has received ratings from India Ratings & Research Private Limited (India Ratings) for Basel III Compliant Tier I Bonds for an amount of Rs. 7,500 Crore.

Ind-Ra has notched down the rating for Yes Bank's AT1 bonds from its Long-Term Issuer Rating. For rating AT1 instruments, the agency considers 'discretionary component', 'coupon omission risk', and 'write-down/conversion risk' as the key parameters. The agency has recognised the unique going-concern loss absorption features that these bonds carry and differentiated them from the bank's senior debt (one notch in this case), factoring in a higher probability of an ultimate loss for investors in these bonds. Ind-Ra envisages coupon deferrals and principal write-down risk as a remote possibility in view of Yes Bank's financial strength, adequate revenue reserve buffers and its track record of consistent operating performance through cycles.

The rating factors in the bank's ability to manage its credit risk, reasonably large and expanding franchise, sufficient levels of capitalisation post equity infusion and improved profitability buffers. The bank's robust fee income profile from the corporate segment helps it support its operating profitability. However, the rating also factors in Yes Bank's proportion of bulk funding being relatively high than that of better rated peers. Although the former's concentration on the deposits side has been improving, depositor concentration remains higher than its larger peers'. Additionally, the bank has an asset-liability tenor gap, on account of a lower share (though improving) of the current account and saving account deposit ratio than larger peers'.

The Stable Outlook reflects Ind-Ra's expectation that any deterioration in Yes Bank's asset quality would be adequately absorbed by its operating profits without any impairment in its Tier 1 capitalisation (June 2017: Tier 1 ratio: 13.8%). Ind-Ra expects the bank's credit cost to remain in the range of 75bp-80bp in FY18, factoring in the limited impact of the accelerated provisioning (at least 50% on identifies accounts by FYE18) on the accounts identified under the Insolvency and Bankruptcy Code for reference to the National Company Law Tribunal. Furthermore, the bank's reasonable pre-provision profitability provides a cushion to absorb spikes in the credit costs under Ind-Ra's stress scenarios. The agency also expects the bank to maintain above-average core capitalisation on an ongoing basis, in line with its higher rated private sector peers'.

Shares of YES BANK LTD. was last trading in BSE at Rs.373.3 as compared to the previous close of Rs. 367.5. The total number of shares traded during the day was 312103 in over 4169 trades.

The stock hit an intraday high of Rs. 375.75 and intraday low of 368. The net turnover during the day was Rs. 116550525.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

Zensar to showcase Store of the Future at ShopTalk 2018
Mahindra Renewables achieves financial closure for 250 MW Solar Power Project in Rewa Madhya Pradesh with YES BANK
Cyient has been placed in the winner's circle of the HfS Aerospace Engineering Services Blueprint 2017
Sonata announces significant functionality addition to its enterprise mobility product Halosys™
Raffles Health Insurance, Singapore Selects Majesco's Health Core Platform
Zensar and Microsoft extend Strategic Partnership in South Africa
MMTC Ltd approves 1:2 bonus issue
Loyal Textile Mills Ltd announces resignation of CEO
Datamatics Global Services Ltd to consider interim dividend for FY 2017-18
Varun Beverages Ltd updates on change in Directors
RBI approves increase in RFPI limit of Future Retail Ltd to 49%
Sacheta Metals Ltd announces resignation of Mr. Kalyan C Shah
Arfin India Ltd bags Calcium and Ferro Boron Management at JSW Steel Plant, Dolvi
Fortis Healthcare Ltd announces resignation of Dr. Preetinder Singh Joshi
SBI takes possession of premises owned by PAE Ltd
Indian Oil Corporation Ltd announces cessation of Dr.B.Mahadevan as Director
Saven Technologies Ltd to consider allotment of fresh shares
Elpro International Ltd to sell stake in PNB Metlife
Prism Cement Ltd's JV completes expansion project
City Union Bank opens 7 new branches on Mar 19, 2018
KIOCL Ltd Board declares Interim Dividend of Rs. 0.27 for 2017-18
Zandu Realty Ltd announces resignation of company secretary
United Drilling Tools Ltd announces cessation of Director
Gujarat State Petronet Ltd to aquire 3,91,06,328 shares of Gujarat Gas Ltd
Elantas Beck India Ltd receives two licenses for MTO & Solvent Naphtha
Shalimar Paints Ltd to approve rights issue letter of offer
Sparkling India Finshares Ltd appoints company secretary
CARE assigns ratings to Nila Infrastructures Ltd
TCS Recognized as a Leader in Cloud Enablement Services by Everest Group
IFCI gets favorable verdict in sale of assets of Blue Coast Hotels Limited for recovery of dues
Newgen Software recognized as a 'Leader' in Dynamic Case Management, Digital Process Automation and ECM by top Independent Research Firm
BGR Energy Systems Ltd secures new order from TANTRANSCO
Granules India Limited receives approval from US FDA for ANDA
Seamec Ltd settles dispute with SEAHORSE and PMS, Egypt
Seamec Ltd gets favorable consideration from CESTAT
Premier Pipes Ltd adjourns board meeting
Capacite Infraprojects Ltd receives order of Rs. 256.58 crores
Sheela Foam Limited receives Silver Medal
Setback for Blue Coast hotels Ltd in Goa Hotel case
AXIS Bank to give 6% interest for SB accounts with balance of Rs. 10 crore and above
Yogya Enterprises Ltd appoints additional director
Ultratech Cement Ltd to provide funds to Binani Industries Ltd to come out of NCLT
R S Software India Ltd approves further investment in Paypermint Pvt Ltd
Dolphin Offshore Enterprises India Ltd announces appointment to committees
Vivimed Labs Ltd to consider preferential issue on Mar 22, 2018
Gala Global Products Ltd approves issue of bonus shares
Devhari Exports India Ltd approves shifting of registered office
CARE reviews ratings of Orient Cement Ltd
GHCL Limited to launch new bedding product brand Rekoop
Tata Power - launches IoT based Automated Meter Infrastructure enabled by Tata Communications

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018