CARE Upgrades YES Bank's Bond Ratings On Asset Quality, Retail Growth

CARE Ratings has upgraded YES Bank's infrastructure and tier-2 bond ratings to 'AA-' from 'A+', citing improved asset quality, strong retail and SME lending growth, and adequate capital buffers. The upgrade applies to ₹46.70 billion of infrastructure bonds and ₹89.00 billion of tier-2 bonds. The outlook remains stable.

The agency also reaffirmed its 'A1+' rating on ₹200 billion of YES Bank’s certificates of deposit.

YES Bank's advances rose 8.1% on year to ₹2.46 trillion as of March 31, with retail and SME loans comprising 59% of the portfolio. CARE is closely watching the progress of Sumitomo Mitsui’s proposed 20% stake acquisition, which would give the Japanese bank two board seats.