Yes Bank Limited — Credit Ratings, 13-06-2025: Credit Rating- Revision

Moody’s has upgraded Yes Bank’s long-term foreign and local currency deposit ratings to Ba2 from Ba3, with the Baseline Credit Assessment improving to ba3 from b1 and the outlook revised to stable from positive. This reflects steady credit profile improvement, supported by a strong CET1 ratio of 13.5%, a gross NPL ratio lowered to 1.6%, and enhanced provisioning coverage at 80%. Sumitomo Mitsui Banking Corporation’s 20% stake provides long-term funding support, complementing a better funding mix driven by higher low-cost deposits and lending focused on higher-yield segments. The upgrade is likely to reduce borrowing costs and boost investor confidence, although profitability and a modest funding profile remain areas to watch.