Yes Bank share price gains 2% as Moody's upgrades rating
The Moody's report comes days after Yes Bank reported a 74.3% year-on-year increase in standalone profit at Rs 225.50 crore for the quarter-ending on September 30, 2021.
November 11, 2021 / 12:34 PM IST
Yes Bank share price was up over 2 percent intraday on November 11 after Moody's upgraded the Bank's outlook to positive.
Private lender Yes Bank's issuer rating has been upgraded from B3 to B2 by Moody's Investors Service. The agency, in a report released on November 10, said it has also changed the bank's outlook "from stable to positive".
Moody's further noted that it has upgraded Yes Bank's Baseline Credit Assessment (BCA) and Adjusted BCA to b3 from caa2.
The upgradations reflect Moody's expectation of a further improvement to the bank's credit profile, driven by a cleanup of legacy stressed assets and/or improvements to its capital and profitability, the agency said in the report.
"Moody's has upgraded Yes Bank's issuer rating to B2 from B3 because its funding and liquidity have substantially improved in the past year, which have strengthened depositor and credit confidence in the bank," it said.
The stock was trading at Rs 13.32, up Rs 0.29, or 2.23 percent at 12:04 hours. It has touched an intraday high of Rs 13.55 and an intraday low of Rs 13.20.
The scrip was trading with volumes of 15,796,602 shares, compared to its five day average of 12,193,828 shares, an increase of 29.55 percent.
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The Moody's report comes days after Yes Bank reported a 74.3 percent year-on-year increase in standalone profit at Rs 225.50 crore for the quarter-ending on September 30, 2021.
Asset quality improved with gross non-performing assets (NPAs) as a percentage of gross advances falling to 14.97 percent in Q2FY22, down from 15.60 percent in the previous quarter. Net NPAs also declined to 5.55 percent from 5.78 percent during the period.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.