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Economic Times
16-06-2025
- Business
- Economic Times
YES Bank shares in focus after Moody's upgrades rating to Ba2, outlook revised to stable
YES Bank shares will be in focus on Monday after international rating agency Moody's upgraded the lender's rating to Ba2 from Ba3 and revised the outlook to 'stable', citing improvements in its credit profile. Moody's also raised the bank's Baseline Credit Assessment (BCA) to ba3 from b1. ADVERTISEMENT "YES Bank's Ba2 deposit ratings are one notch above its ba3 BCA based on our expectation of a moderate likelihood of support from the Government of India (Baa3 stable) in times of need," Moody's said. Also Read: 10 midcap stocks with more than 20 buy Calls: Analysts see up to 25% upside Last week, YES Bank announced that the Reserve Bank of India (RBI) had approved a six-month extension for Managing Director and CEO Prashant Kumar, effective October 6, or until a new MD & CEO takes charge. Kumar's original three-year term ends in October, and the bank has initiated a global search for his successor. In May, Japan's Sumitomo Mitsui Banking Corp (SMBC) signed a definitive agreement to acquire a 20% stake in YES Bank through a secondary purchase. SMBC will acquire 13.19% from State Bank of India and 6.81% from other banks for Rs 13,483 crore, at a price of Rs 21.5 per share. SBI will offload its stake for Rs 8,889 crore, while the remaining Rs 4,594 crore will come from other banks including Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank, and Kotak Mahindra Bank. ADVERTISEMENT Also Read: These 11 Nifty microcap stocks can rally 55-210% in the next 12 monthsYES Bank share price target ADVERTISEMENT According to Trendlyne, the average target price for YES Bank is Rs 16, indicating a potential downside of nearly 18% from current levels. Of the 12 analysts covering the stock, most have a 'Sell' stock has risen 24% over the past three months but remains down 15% on a 12-month basis. The bank's current market capitalisation stands at Rs 63,227 crore. ADVERTISEMENT Also Read: Swiggy, Radico Khaitan among 7 stocks on which brokerages initiated coverage, see up to 34% upside (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
16-06-2025
- Business
- Time of India
YES Bank shares in focus after Moody's upgrades rating to Ba2, outlook revised to stable
YES Bank shares will be in focus on Monday after international rating agency Moody's upgraded the lender's rating to Ba2 from Ba3 and revised the outlook to 'stable', citing improvements in its credit profile. Moody's also raised the bank's Baseline Credit Assessment (BCA) to ba3 from b1. "YES Bank's Ba2 deposit ratings are one notch above its ba3 BCA based on our expectation of a moderate likelihood of support from the Government of India (Baa3 stable) in times of need," Moody's said. Also Read: 10 midcap stocks with more than 20 buy Calls: Analysts see up to 25% upside Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 1x Playback Rate Chapters Chapters Descriptions descriptions off , selected Captions captions settings , opens captions settings dialog captions off , selected Audio Track default , selected Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Last week, YES Bank announced that the Reserve Bank of India (RBI) had approved a six-month extension for Managing Director and CEO Prashant Kumar, effective October 6, or until a new MD & CEO takes charge. Kumar's original three-year term ends in October, and the bank has initiated a global search for his successor. In May, Japan's Sumitomo Mitsui Banking Corp (SMBC) signed a definitive agreement to acquire a 20% stake in YES Bank through a secondary purchase. SMBC will acquire 13.19% from State Bank of India and 6.81% from other banks for Rs 13,483 crore, at a price of Rs 21.5 per share. SBI will offload its stake for Rs 8,889 crore, while the remaining Rs 4,594 crore will come from other banks including Axis Bank , Bandhan Bank , Federal Bank , HDFC Bank , ICICI Bank , IDFC First Bank , and Kotak Mahindra Bank . Also Read: These 11 Nifty microcap stocks can rally 55-210% in the next 12 months YES Bank share price target According to Trendlyne, the average target price for YES Bank is Rs 16, indicating a potential downside of nearly 18% from current levels. Of the 12 analysts covering the stock, most have a 'Sell' rating. The stock has risen 24% over the past three months but remains down 15% on a 12-month basis. The bank's current market capitalisation stands at Rs 63,227 crore. Also Read: Swiggy, Radico Khaitan among 7 stocks on which brokerages initiated coverage, see up to 34% upside ( Disclaimer : Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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Business Standard
13-06-2025
- Business
- Business Standard
Moody's upgrades Yes Bank rating to Ba2 citing improved credit profile
Moody's Ratings on Friday upgraded Yes Bank's long-term foreign currency and local currency bank deposit ratings by a notch to Ba2, from Ba3, driven by a gradual improvement in the bank's credit profile. The global rating agency has upgraded its Baseline Credit Assessment (BCA) to ba3 from b1, Moody's said in a statement. The upgrade of Yes Bank's ratings and BCA is driven by a gradual improvement in the bank's credit profile including its capital and loan loss reserves, which will provide sufficient buffers against the bank's unseasoned asset risks and improving yet modest profitability and funding, it said. "Yes Bank's Ba2 deposit ratings are one notch above its Ba3 BCA based on our expectation of a moderate likelihood of support from the Government of India (Baa3 stable) in times of need," it said. The bank's gross non-performing loan (NPL) ratio declined to 1.6 per cent, as of March 2025, from 13.9 per cent in March 2022. Reported provision coverage as a proportion of NPL increased to 80 per cent from 71 per cent during this period. Despite these improvements, it said, Yes Bank's asset quality remains exposed to unseasoned risks associated with the rapid expansion in its retail and small and medium enterprise portfolios, its increased focus into higher-risk retail segments, and reliance on third-party sourcing channels.
Time of India
13-06-2025
- Business
- Time of India
Yes Bank rating upgrade: Moody's lifts Yes Bank to Ba2 on stronger buffers, cites lower NPAs, better provisioning
Global credit rating agency Moody's Ratings on Friday upgraded Yes Bank's long-term foreign and local currency bank deposit ratings to Ba2 from Ba3, citing a gradual improvement in the bank's overall credit profile. The agency also raised Yes Bank's Baseline Credit Assessment (BCA) by one notch to ba3 from b1, reflecting better capital adequacy and strengthened loss-absorption buffers, Moody's said in a statement. 'The upgrade of Yes Bank's ratings and BCA is driven by a gradual improvement in the bank's credit profile, including its capital and loan loss reserves, which will provide sufficient buffers against unseasoned asset risks,' Moody's said as quoted PTI. The agency added that the bank's profitability and funding metrics are improving, albeit from modest levels. Yes Bank's gross non-performing loan (NPL) ratio dropped to 1.6% as of March 2025, a significant improvement from 13.9% recorded in March 2022. Over the same period, provision coverage as a proportion of NPLs improved to 80%, up from 71%, reflecting stronger asset quality buffers. Despite these gains, Moody's noted that the bank remains exposed to 'unseasoned risks' due to its rapid expansion into the retail and small and medium enterprise (SME) segments, increased focus on higher-risk retail lending, and its reliance on third-party sourcing for loan origination. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 3/4 BHK from ₹ 1.75 Crore*, Bengaluru Birla Estates Learn More Undo Moody's said the Ba2 deposit ratings are one notch above the bank's BCA of ba3, underpinned by the expectation of a moderate level of systemic support from the Government of India, which has a sovereign rating of Baa3 with a stable outlook. Yes Bank has undertaken a series of balance sheet clean-up and governance reforms since its reconstruction in 2020, following a Reserve Bank of India-led rescue plan backed by a consortium of Indian banks. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
09-05-2025
- Business
- Business Standard
Moody's downgrades IndusInd credit profile to 'ba2', flags control lapses
Global rating agency Moody's on Friday downgraded the standalone credit profile of IndusInd Bank from "ba1" to "ba2", citing weaknesses in its internal controls highlighted by discrepancies in derivatives accounting and inadequate management oversight. The agency also raised concerns over the bank's medium-term strategy, pointing to the resignation of senior leadership without adequate succession planning, it said in a late-night statement. 'We consider these issues as governance risks under our Environmental, Social and Governance (ESG) framework. Consequently, we have lowered the bank's Governance Issuer Profile Score to 4 from 3 and have made a negative corporate behaviour adjustment in the bank's standalone assessment,' Moody's said. It affirmed IndusInd's "Ba1" long-term foreign currency and local currency bank deposit ratings, citing the bank's strong capital position, core profitability, and adequate liquidity, which will help mitigate near-term risks to its funding and asset quality. However, Moody's revised the rating outlook from "stable" to "negative", reflecting the potential for further deterioration in the bank's solvency, funding, or liquidity position as it works to stabilise operations and define its strategy under a new management team. Friday's rating action concludes the review for downgrade of the Baseline Credit Assessment (BCA) and adjusted BCA initiated on 17 March 2025, Moody's added. At the end of April 2025, IndusInd Bank's managing director and chief executive officer, along with the deputy CEO, resigned following the completion of an external agency's review into discrepancies in accounting for derivative transactions. While the external agency's estimate of the one-off loss was in line with the bank's internal estimate reported on 10 March 2025, Moody's said the episode underscores lapses in internal controls.
