Yes Bank shares zoom 10% on ratings upgrade
New Delhi: Shares of Yes Bank Ltd rallied nearly 10 per cent on Wednesday after the bank said that Brickwork Ratings has upgraded the rating of its tier I Subordinated Perpetual Bonds (Basel II) to BWR BB+/ Stable.
The bank's shares rose 9.98 per cent to hit the upper circuit at Rs 19.06 on the BSE. The stock hit its upper trading limit on the NSE as well and ended the day with a gain of 9.83 per cent at Rs 19.
The upgrade by Brickwork Ratings factors in improvement in capitalisation ratios of the bank, strong shareholder base and experienced board members, Yes Bank said in a regulatory filing on Tuesday. The rating is, however, constrained by the weak asset quality, impacting the profitability and moderate resource profile of the bank.
The gross non-performing assets (NPAs) and net NPAs stood at 16.9 per cent and 4.7 per cent respectively as on September 30, 2020, Brickwork Ratings said.