The bank has managed a stark improvement in its liquidity coverage ratio, which has risen from 37% in March, 2020 to 114% as of June, 2020. Already ahead of its original plan, the lender has also paid back Rs 35,000 crore out of the Rs 50,000 crore special liquidity facility it had undertaken from Reserve Bank of India (RBI) in March 2020.
Assigning its ‘CRISIL BBB/Stable’ rating to the Tier II bonds of Rs 13,941 crore and infrastructure bonds of Rs. 3780 Crore, CRISIL explained , “The ratings are underpinned by the expectation of continued extraordinary systemic support from key stakeholders and sizeable ownership by State Bank of India (SBI).” SBI currently holds 30% stake worth Rs 9225 crore in Yes Bank.
CRISIL further said that the upgrade in the short-term rating displays an improvement in the funding and liquidity profile of the bank, and gradual improvement in the deposit base and capital increment.
