Care upgrades credit ratings of YES Bank bonds

Mumbai: Care has upgraded Yes Bank’s credit rating to the highest AAA from AA+ for infrastructure bonds and tier II bonds. It has also upgraded the bank’s rating on perpetual and tier I bonds to AA+ from AA. The rating upgrades reflect the bank’s “robust financial performance, creditworthiness, and increasing share of current and savings account (CASA) as well as retail deposits,” Yes Bank said in a statement.

“This rating upgrade from Care Ratings is a reflection of Yes Bank’s sustainable growth-oriented business model coupled with robust risk management policies, demonstrated and proven track record in asset quality preservation, rapidly growing branch banking presence and a strong execution focused management team. This rating upgrade will result in further reduction in our cost of borrowings going forward,” Yes Bank CEO Rana Kapoor said in a statement.

This upgrade comes even as other lenders, especially from the public sector are battling high non-performing assets. Care considered adequate capitalisation, healthy profitability, comfortable asset quality, improvement in funding profile and comfortable liquidity profile for upgrade.


Earlier this week, Yes Bank received the final regulatory approval from the Securities & Exchange Board of India to commence its mutual fund business immediately. This approval follows a Reserve Bank of India’s nod granted a few months ago.

“Yes Asset Management India (YAMIL) will further complement Yes Bank’s retail liabilities and wealth management strategy, and also allow YAMIL to build on the Bank’s ‘DIGICAL’ distribution network to provide customers a seamless investment and banking experience. In keeping with Yes Bank’s ethos, YAMIL will be built on a foundation of robust technology infrastructure, superlative human capital and best-in-class processes to offer finest quality services to its valued investors,” Kapoor said.

YAMIL plans to launch fund offerings across debt and equity markets over the next 6-12 months. The bank had also recently received the final licence from Sebi to launch its custodian of securities business and is on course to start representative offices in London and Singapore.