CRISIL upgrades YES Bank’s tier II bonds, infrastructure bonds to ‘BBB+’
- ByAyushi Ray | September 1, 2021
CRISIL upgrades YES Bank’s tier II bonds, infrastructure bonds to ‘BBB+’ . YES Bank’s total deposits had increased to Rs 1.63 trillion as of June 30, 2021 from Rs 1.17 trillion a year ago and Rs 1.05 trillion as on March 31, 2020. The proportion of, granular and sticky, current account and savings account (CASA) deposits to overall deposits has been showing an improving trend. The share of CASA deposits stood at 27.4 percent as on June 30, 2021 as against 25.8 per cent as on June 30, 2020. Further, the bank’s capital position is adequate, supported by the capital raise of Rs 15,000 crore through a follow-on public offer (FPO) in July 2020. The common equity tier I (CET1) ratio and overall capital adequacy ratio (CAR) stood at 11.6 per cent and 17.9 per cent, respectively, as on June 30, 2021.
The bank’s average liquidity coverage ratio also remains adequate at 132 per cent for the quarter ended June 30, 2021, as against the minimum regulatory requirement of 100 per cent. The ratings continue to be underpinned by the expectation of continued extraordinary systemic support from key stakeholders and sizable ownership by the State Bank of India (SBI), CRISIL said in a statement. At the same time, the ability to build a strong retail liabilities franchise and sound operating business model with strong compliance and governance framework over the medium term, needs to be demonstrated. The bank’s asset quality is weak and the impact of the shift in business model to focus on granular retail and micro, small and medium enterprises segments will need to be seen over a longer period.
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