CareEdge Ratings Upgrades Yes Bank Bonds, Reaffirms Deposits Rating Amid Asset Quality Improvements
CareEdge Ratings has upgraded long-term infrastructure and Tier II bonds of Yes Bank Ltd (YBL) to CARE AA+ / Stable and reaffirmed the rating for Certificate of Deposits. The ratings action reflects the bank's strengthening liability franchise, improving asset quality, and steady growth in core profitability, according to CareEdge.The upgrade applies to key long-term instruments issued by YBL. The ratings breakdown includes:
| Instrument | Existing Rating & Outlook | Action |
|---|---|---|
| Infrastructure Bonds, Tier II Bonds | CARE AA-/Stable | Upgraded to CARE AA+ / Stable |
| Certificate of Deposits | CARE A1+ | Re-affirmed at CARE A1+ |
These ratings cover significant funding instruments, as detailed below:
| Facilities/Instruments | Amount (₹ crore) | Rating 1 | Rating Action |
|---|---|---|---|
| Infrastructure Bonds | 4,670.00 | CARE AA+; Stable | Upgraded from CARE AA-; Stable |
| Tier II Bonds | 8,900.00 | CARE AA+; Stable | Upgraded from CARE AA-; Stable |
| Certificate Of Deposit | 20,000.00 | CARE A1+ | Reaffirmed |
Operational Strengths and Financial Health
CareEdge Ratings cited sustained growth in advances and a focus on improving portfolio granularity as factors driving the upgrade. The bank's liability franchise has strengthened, evidenced by CASA (Current Account Savings Account) standing at 35.10% as of March 31, 2026, compared to 34.26% in the previous fiscal year.The bank’s asset quality has shown significant improvement. Net stressed assets-to-net worth declined to 1.93% in FY26 from 2.90% in FY25, primarily driven by writeoffs and lower slippages. On the capital side, the overall capital adequacy ratio (CAR) stood at 15.30%, with Tier-I capital at 13.80%.
Financially, YBL reported a total income of ₹36,928 crore in FY26 compared to ₹36,752 crore in FY25. Profit After Tax (PAT) increased by 42% to ₹3,476 crore in FY26 from ₹2,406 crore in FY25, with the Return on Total Assets (RoTA) improving to 0.80%.
Strategic Context and Outlook
The rating assessment noted the strategic role of Sumitomo Mitsui Banking Corporation (SMBC), which holds a stake of ~24.90% in YBL as of March 31, 2026. SMBC is currently the single largest shareholder and has inducted two nominee directors on the bank's board.On the lending side, the advances book grew by approximately 11% in FY26, totaling ₹2,73,445 crore as of March 31, 2026. The bank maintains a diversified portfolio, with retail advances constituting 46% of total advances. Furthermore, YBL operates as a UPI payee payment service provider (PSP) bank with approximately 57% market share in March 2026.
The outlook given by CareEdge Ratings is Stable, reflecting the expectation that the bank will continue to improve its business performance while maintaining adequate capitalization levels. However, the ratings remain constrained by the moderate profitability metrics and the continued need for monitoring slippages within the retail segment.
Key financial indicators of Yes Bank Ltd across two fiscal years are presented in the table below:
| Metric | March 31, 2025 | March 31, 2026 |
|---|---|---|
| Total Income (₹ crore) | 36,752 | 36,928 |
| PAT (₹ crore) | 2,406 | 3,476 |
| Gross NPA (%) | 1.60% | 1.30% |
| Net NPA (%) | 0.30% | 0.20% |
| CAR (%) | 15.60% | 15.30% |
YESBANK Stock Price Movement
As of 11:51 AM, shares of Yes Bank Limited are shedding value in live trading, having slipped by 2.99% and currently trading at ₹24.34. The stock trades amidst high activity, with a total volume reaching 71.58 million shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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