Yes Bank rises after ICRA upgrade ratings on debt instrument

Yes Bank rose 2.67 per cent to Rs 15 after domestic credit rating agency ICRA on Friday upgraded its ratings assigned to various debt instruments of the private lender.

The rating agency has upgraded Infrastructure bonds and Basel II compliant lower tier II bonds.

ICRA said the rating upgrade factors in the sizeable capital raise of Rs 15,000 crore in July 2020, which has resulted in an improvement in the capital ratios of Yes Bank. The ratios are now comfortably above the regulatory levels. The capital raise follows the Government-approved reconstruction scheme implemented in Q4 March 2020, under which equity capital of Rs 10,000 crore  from SBI and other domestic institutions was infused into the bank. The rating upgrade also factors in the improvement in the bank's liquidity position after the stability and subsequent increase in its deposit base.

Yes Bank has fully repaid Rs 50,000 crore towards the Special Liquidity Facility (SLF) extended by the Reserve Bank of India (RBI), well before the due date.

Shares of Yes Bank rallied for third consecutive trading session. The bank has gained 9.7 per cent in last three trading sessions from its previous closing low of Rs 13.67 posted on 9 September 2020.