The agency has also affirmed the company's short-term rating at 'CARE A1+'. CARE Ratings stated that the revision in the ratings assigned to the debt instruments of Yes Bank (YBL) factor in continued growth in advances with improvement in proportion of retail lending and small & medium enterprises (SME) leading to more granular book, reduction in higher ticket corporate lending. Growth in advances was supported by the relatively higher growth in deposits improving its CD ratio, while maintaining the stable current account and savings account (CASA) deposits. Rating also factors in adequate capitalisation level supported by receipt of Rs 2,845 crore towards conversion of share warrants during Q1 FY25 (refers to the period from April 01 to June 30) and and improvement in the asset quality parameters on account of lower incremental slippage and sale of non-performing assets (NPAs) to Asset Reconstruction Company (ARC). The ratings continue to factor in the improvement in the credit risk profile of the bank post the implementation of the reconstruction scheme. The ratings are constrained due to continued dependence on wholesale/bulk deposits and although the bank has shifted focus on retail and SME loans, the track record remains limited which needs to be monitored over a period of time. Additionally bank continues to have PSL shortfall leading to higher RIDF deposits which have affected the profitability of the bank. Further, the proportion of stressed assets remains relatively higher. The bank has seen recoveries and upgrades from bad accounts which have offset the slippages during FY24, keeping NPA levels stable in absolute terms. While the bank has been making provisions to increase its provision coverage, which has kept the credit costs elevated and profitability moderate, the ability of the bank to maintain the asset quality once the performance of the relatively new retail products is established, would be a key rating monitorable. Yes Bank is a new generation private sector bank. As on March 31, 2024, the bank had 1,234 branches, 219 BC managed banking outlets and 1,290 ATMs, CRMs and BNAs. The scrip shed 0.13% to currently trade at Rs 23.48 on the BSE. Powered by Capital Market - Live

Yes Bank has appointed Sumit Bali as Country Head Retail Assets and Debt Management of the Bank effective today.Powered by Capital Market - Live

CRISIL Ratings has also reaffirmed its short-term rating on the certificates of deposit (CD) of the bank at 'CRISIL A1+'. CRISIL stated that the rating action is driven by continued focus on building granularity both on the assets and liabilities side and sustaining comfortable capitalisation levels. The Bank's profitability, while improving remains constrained by the drag on their investments in priority sector lending (PSL) assets, industry wide press on funding costs and higher operating expenses. On the asset side, the bank had realigned its business model with a focus towards more granular lending, with the share of loans to retail and small and medium enterprises (SME) at ~60% of the net advances. Even within the corporate book, the bank is focusing on lower sized exposures and a higher proportion of working capital loans, with term lending mainly to better rated corporates. While there has been a marginal uptick in the retail GNPA, the improved granularity of the portfolio, coupled with strengthened risk management practices across asset segments, should support underlying asset quality going ahead. The ability of the bank to manage collections and execute the revised business model with controlled asset quality will need to be demonstrated over a longer period. On the liabilities side, the steady improvement in the deposit base seen since the reconstruction scheme in March 2020 is expected to continue and hold the bank in a good stead. The proportion of granular and sticky, current account, and savings account (CASA) deposits to overall deposits has been steady and stood at 30.8% as on June 30, 2024 (30.9% as on March 31, 2024) as against 26.1% as on March 31, 2021. While the CASA level may not see a sharp increase in the near term given the interest rate cycle and continued shift to term deposits which carry higher rates, as well as higher dependence on institutional depositors, the overall stability of deposits is expected to be sustained. The bank's capitalisation remains adequate, supported in part by internal accruals, with common equity Tier I (CET1) ratio and overall capital adequacy ratio (CAR) of 13.3% and 16.5% respectively, as on June 30, 2024 (12.2% and 15.4%, respectively, as on March 31, 2024). Capital position had improved after the receipt of Rs 2,845 crore towards exercise of share warrants in first quarter of fiscal 2025. Profitability, while on an improving trend in recent quarters, with return on average assets (ROAA) of 0.3% for FY24 and 0.5% for Q1FY25 (annualized), remains lower than peers. This is due to drag on interest income from investments in Rural Infrastructure Development Fund (RIDF) to meet PSL shortfall, along with higher funding costs in the current interest rate environment and elevated operating expenses from growing a retail and SME portfolio. Excluding the impact of the PSL drag, ROAA would have been higher by 40 basis points for FY24. Going ahead, the ability of the bank to continue to build a strong retail liabilities franchise and a stable and sound operating business model needs to be demonstrated over the longer term along with an improvement in its profitability levels. Additionally, the impact of seasoning on the retail and MSME segments also needs to be seen over a longer period. These will be key rating monitorables. Yes Bank is a private sector bank with total assets of Rs 4,07,697 crore, total gross advances of Rs 2,26,176 crore, and a network of 1,232 branches as on June 30, 2024. The bank reported a profit of Rs 502 crore and total income (net of interest expense) of Rs 3,443 crore in the quarter ended June 30, 2024, against Rs 343 crore and Rs 3,141 crore, respectively, in the corresponding quarter of the previous fiscal. The scrip rose 0.37% to currently trade at Rs 24.54 on the BSE. Powered by Capital Market - Live

Yes Bank has received revision in credit rating from CRISIL as under: Infrastructure bonds, Basel III Tier II bonds - CRISIL A+/ Stable (upgraded from CRISIL A/ Positive) Certificate of deposits - CRISIL A1+ (reaffirmed) Powered by Capital Market - Live

Yes Bank has allotted 46,48,901 equity shares under ESOP on 19 August 2024. Consequent to the allotment, the paid-up share capital of the Bank stands increased from Rs. 62,67,86,90,160/- consisting of 31,33,93,45,080 equity shares of Rs. 2/- each to Rs. 62,68,80,59,962/- consisting of 31,34,40,29,981 equity shares of Rs. 2/- each. Powered by Capital Market - Live