YES Bank on Thursday said that the rating agency has revised the rating watch on the long-term issuer rating of 'IND BB-' of the private sector bank to rating watch evolving (RWE) from rating watch negative (RWN).
YES Bank on Thursday said that the rating agency has revised the rating watch on the long-term issuer rating of ‘IND BB-‘ of the private sector bank to rating watch evolving (RWE) from rating watch negative (RWN). “Ind-Ra has revised the rating watch on Yes Bank Ltd’s long-term issuer rating of ‘IND BB-‘ to RWE from RWN,” Yes Bank said in an exchange filing on Thursday. The bank saw revision following support by other banks in terms of both equity and liquidity.
“Ind-Ra downgraded the bank’s ratings and maintained them on RWN on 6 March 2020; in the agency’s opinion, the temporary regulator-imposed moratorium resulted in the bank not being able to follow through with settlement and transaction requests”, the filing said.
Subsequently, the bank declared its third-quarter results. Its gross non-performing assets (NPAs) rose to 18.87 per cent in 3QFY20 from 7.39 per cent in 2QFY20 while its net NPAs grew to 5.97 per cent from 4.35 per cent. Meanwhile, YES Bank shares Thursday halted its four-session rally and fell more than 29 per cent after the company said its single largest promoter Madhu Kapur has pledged an additional 25 lakh share of her family’s shareholding in the bank. The scrip plummeted 25.74 per cent to Rs 45.15 at the BSE. On the NSE, it cracked 29.19 per cent to Rs 42.80. In the last four trading days, the company’s scrip had risen a whopping 142 per cent after Moody’s upgraded the company’s ratings and on the announcement of a restructuring plan.