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Moody’s upgrades Yes Bank’s rating to B2 from B3, changes outlook to positive

Ratings agency Moody’s has upgraded private lender YES Bank’s rating to B2 from B3, and changed the outlook to positive from stable.

The agency said the upgrade reflects Moody’s expectation of a further improvement to the bank’s credit profile, driven by a cleanup of legacy stressed assets and improvements to its capital and profitability.

Moody’s further said because YES Bank’s funding and liquidity have substantially improved in the past year, which have strengthened depositor and credit confidence in the bank.

The rating action also reflects the fact that despite the significant economic challenges since the onset of the pandemic, Moody’s said, adding that YES Bank’s asset quality has deteriorated only modestly while its capital has remained stable.

Yes Bank has reported a net profit of ₹225 crore in the September quarter, as compared to ₹129 crore in the year-earlier quarter.

In terms of asset quality, GNPA ratio fell to 15% in September quarter vs 15.6% in the June quarter while NNPA ratio also fell to 5.5% vs. 5.8% last quarter.

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