Yes Bank Limited — Credit Ratings, 03-07-2025: Credit Rating- Revision

CARE Ratings has upgraded Yes Bank Limited’s infrastructure bonds and Tier II bonds from CARE A+ to CARE AA- with a stable outlook, while reaffirming its Certificate of Deposit rating at CARE A1+. The upgrade reflects sustained growth in advances led by higher retail and SME lending, improved asset quality with net stressed assets to net worth down to 4.63%, and robust capital adequacy with a 15.65% CAR supported by equity infusions. Profitability improved noticeably with PAT doubling to ₹2,406 crore and ROTA rising to 0.59%, alongside stable net interest margins and reduced credit costs. Enhanced deposit granularity and reduced high-cost borrowings support better liability profile. This rating enhancement should lower the bank’s borrowing costs and bolster investor confidence, providing stronger financial flexibility for future growth.