India Ratings Upgrades Yes Bank to 'IND A-'/Stable

India Ratings and Research (Ind-Ra) has upgraded Yes Bank Ltd's Long-Term Issuer Rating to 'IND A-' from 'IND BBB'. The Outlook is Stable.

The upgrade factors in the bolstering of capital buffers through proposed equity raise of about INR89 billion, strengthening of the bank's liability profile, as reflected in an increase in the proportion of granular retail deposits, step-up of lending across segments, increased share of the non-corporate loan portfolio, and an overall improvement in the operating environment in the COVID-19 aftermath.

Yes Bank continues to gain market share on the digital payments side, which has been playing a reasonable role in the bank's attempts to mobilise current account deposits (CA) and other businesses. Furthermore, with the senior management having become relatively stable through reconstruction, the Reserve Bank of India has pulled its representatives from the bank's board, and the bank's reconstruction seems to have been completed. The bank has a sizable quantum of assets under restructuring, special mention accounts and advances supported by the emergency credit line guarantee scheme of the Government of India that need to be closely watched, though Ind-Ra expects the overall impact to be manageable. The bank's attempts to build a definitive franchise and increased traction in its efforts to monetise its payment leadership capabilities would continue to be under focus.

Shares of Yes Bank Limited was last trading in BSE at Rs. 16.46 as compared to the previous close of Rs. 16.50. The total number of shares traded during the day was 14495334 in over 14168 trades.

The stock hit an intraday high of Rs. 16.70 and intraday low of 16.41. The net turnover during the day was Rs. 239434137.00.

Source : Equity Bulls

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