Yes Bank Shares: 10 Reasons Why Icra Upgraded Credit Rating For Infra Bonds

YES Bank shares are successful attraction connected Tuesday greeting aft in installments standing agency ICRA upgraded aliases reaffirmed its standing connected Rs 24,460.80 crore worthy infrastructure and Basel III bonds. The standing for Infrastructure Bonds and Basel III Tier II Bonds were upgraded to ICRA AA- / Stable. 

ICRA said nan standing upgrade factors successful nan dependable summation successful YES Bank's standard of operations, nan improving operation of nan indebtedness book pinch nan increasing stock of granular loans, and nan continued diminution successful nan stressed assets pool, which provides immoderate stableness to nan net and superior position. 

"ICRA besides takes statement of nan dependable recoveries from nan information receipts (SRs), which helped nan slope study an betterment successful its wide profitability. ICRA expects nan recoveries (though moderating) to support supporting nan bank’s profitability successful nan adjacent word while it would proceed pinch its efforts to amended its halfway operating profitability further for a sustainable and patient profitability profile. ICRA besides notes nan planned liking acquisition by Sumitomo Mitsui Banking Corporation1," ICRA said.

SMBC will beryllium nan azygous largest shareholder erstwhile nan required approvals are received.

ICRA said nan ratings stay supported by nan capable capitalisation and dependable deposit growth, though nan stock of wholesale deposits stays high. 

The susceptible book -- comprising 31-90 days overdue and nan modular restructured book, has besides declined to 10 per cent of nan wide halfway superior arsenic connected March 31, 2025 from astir 21.2 oer cent arsenic connected March 31, 2024, though it remains monitorable. 

"With nan declining excavation of stressed assets, YES bank's gross slippage complaint has besides been declining. This, on pinch recoveries, helped nan slope study little nett in installments costs. 

"However, nan ratings besides see nan below-average liking spreads connected relationship of nan precocious backing costs, resistance of precocious stock of low-yielding assets {deposits towards shortfall successful privilege assemblage lending (PSL)}, and nan elevated cost-to-income ratio, which lead to anemic operating profitability and return metrics. While deposit maturation has been appreciable, nan stock of corporate/wholesale deposits remains comparatively high," ICRA said.

ICRA said YES Bank's expertise to proceed to standard up its indebtedness book, granularise its deposit franchise further and amended its backing costs will stay cardinal for an betterment successful its halfway operating profitability. Additionally, its expertise to limit slippages from nan residual susceptible book will stay cardinal for keeping nan in installments costs successful check, fixed its comparatively bladed operating profitability level.

Published on: Jul 15, 2025 8:36 AM IST