/ Moody's Maintains Yes Bank's International Rating At Baa3 With Stable Outlook (Unchanged) ~ Ways2Capital|Stock Tips|Stock Market Tips|Intraday Stock Tips|Stock Trading Tips|NSE BSE Tips

Tuesday, 18 July 2017

Yes Bank Limited's (Yes Bank) Baa3/Prime-3 foreign-currency deposit ratings are underpinned by the bank's Baseline Credit Assessment (BCA) of ba1 and one notch of government support. Yes Bank's BCA of ba1 reflects the bank's sound asset quality, consistent profitability and small but rapidly growing franchise compared with its Indian banking sector peers.

Asset quality remained fairly resilient compared with other Indian banks for the past five years but there has been some slippages in recent quarters, with gross NPL ratio increasing to 1.52% as of the end of March 2017 from 0.76% a year earlier.

In addition, the overall pool of stressed and restructured assets increased to 2.96% of gross loans as of the end of March 2017, compared with 1.49% a year earlier. At the end of March 2017, Yes Bank's reported Common Equity Tier 1 (CET1) ratio improved to 11.4% on the back of a INR49 billion ($750 million) capital raise via qualified institutional placement.

Yes Bank's BCA also reflects its comparatively weaker but improving funding profile. Loan/ deposit ratio was high at 92.6% as of the end of March 2017. While the bank's current level of current and savings accounts (CASA) deposits remains below the domestic peer average, it has been building up its deposit base, as well as increasing its branch network. The bank's CASA ratio improved to 36.3% in March 2017 from 28.1% in March 2016. As of the end of March 2017, the bank's network consisted of 1,000 branches and 1,785 ATMs.

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