Brickwork Ratings (BWR) upgraded the rating of the Yes Bank of Tier-I subordinated perpetual bonds (Basel II) to BWR BB+ (Stable) from BWR D (default or expected to be default).
Brickwork Commented
The common equity Tier I (CET-I) had fallen to 0.6 per cent and total capital adequacy ratio (CAR) for the bank has fallen to 4.1 per cent.
But the capital infusion and write-down of additional Tier I bonds helped to improve the bank’s CET I and CAR ratio to 6.3 per cent and 8.5 per cent respectively, as on March 31.
The latest fund raising plan of Rs15000 crore in July, has helped the bank to improve its capital ratios.
CET I, Tier I and CAR ratios stood at 13.5 per cent, 13.6 per cent and 19.9 per cent, respectively, as on September 30
Gross and Net NPA
The gross NPAs and net NPAs stood at 16.9 per cent and 4.7 per cent respectively, as on September 30.
Decrease in Deposits
The bank had seen a decline in deposits with total deposits reducing from Rs 2,27,610 crore as on March 31, 2019…. to Rs 1,05,364 crore as March 31.
Credit Deposit Ratio
The credit to deposit ratio has improved from 163 per cent as on March 31 to 123 per cent as on September 30 and is further expected to reduce by the end of the current financial year.
The bank has also fully repaid the special liquidity facility of Rs 50000 crore from the RBI.
Company’s Shareholders
The Bank have a strong Shareholders base with Bank of India alone holding 30% of the equity shares.
The rating agency said the bank is likely to receive support from various stakeholders, if required as extended in the recent past.
Stock Market Impact
YES Bank hit a four-month high of Rs 18.90, up 9 per cent on the BSE in early morning trade on Wednesday.
With today’s gain, the stock of YES Bank has rallied 50 per cent in the past one month.
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