Yes Bank ↗

Detailed description of key rating drivers: Key strengths Adequate capitalisation expected to aid steady growth The bank’s capitalisation levels have been supported by equity infused by domestic banks and financial institutions which infused equity capital aggregating to ₹10,000 crore as a part of the restructuring scheme in FY2020.

In July 2020, the bank raised equity capital of ₹15,000 crore through a follow-on public offer (FPO) to support the bank’s capitalisation levels.

In FY23 (FY refers to April 01 to March 31), the bank raised equity capital of ₹8,898 crore, of which, ₹6,045 crore by way of preferential allotment of shares was received in FY23 and the balance ₹2,854 crore was infused upon conversion of warrants in FY25.

Detailed description of key rating drivers: Key strengths Adequate capitalisation post capital infusion The bank’s capitalisation levels have been supported by equity infused by domestic banks and financial institutions which infused equity capital aggregating to ₹10,000 crore as a part of restructuring scheme.

Furthermore, In July 2020, the bank raised equity capital of ₹15,000 crore through a follow -on public offer (FPO) supporting the bank’s capitalisation levels.

In FY23, the bank raised equity capital of ₹8,898 crore, of which, ₹6,045 crore by way of preferential allotment of shares has been received in FY23 and the remaining ₹2,845 crore were infused on conversion of warrants in Q1FY25.

Further, The bank raised ₹15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalisation levels to well above regulatory requirement.

Detailed description of the key rating drivers: Key strengths Adequate capitalisation post capital infusion, core capitalization may be impacted due to legal judgement The bank’s capitali sation levels have been supported by equity infused by domestic banks and financial institutions which infused equity capital aggregating to ₹10,000 crore as part of restructuring scheme.

Further more, in July 2020, the bank raised equity capital of ₹15,000 crore through a follow -on public offer (FPO) supporting the capitali sation levels of the bank.

During FY23, the bank raised equity capital of ₹8,898 crore, out of which, ₹6,045 crore by way of preferential allotment of shares has been received during FY23 and the remaining ₹2,845 crore were infused on conversion of warrants in Q1FY25.

Further, the bank raised ₹15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalisation levels to well above regulatory requirement.

Further, the ratings factor in adequate capitalisation, which strengthened during FY23 (refers to the period from April 01 to March 31) through capital infusion of ₹6,037 crore as envisaged for FY23 which is part of the planned equity infusion of ₹8,898 crore by way of preferential allotment of equity shares and equity warrants, while the remaining ₹2,846 crore is expected to be infused in the near term, which would provide support for growth and any credit losses.

Detailed description of the key rating drivers: Key strengths Adequate capitalisation post capital infusion, core capitalization may be impacted due to legal judgement The bank’s capitalisation levels have been supported by equity infused by domestic banks and financial institutions which infused equity capital aggregating to ₹10,000 crore as part of restructuring scheme.

Furthermore, in July 2020, the bank raised equity capital of ₹15,000 crore through a follow-on public offer (FPO) supporting the capitalisation levels of the bank.

During FY23, the bank raised equity capital of ₹8,898 crore, out of which, ₹6,037 crore by way of preferential allotment of shares has been received during FY23 and the remaining ₹2,846 crore would be infused on conversion of warrants within 18 months i.e., up to FY25.

YBL has recently infused capital of ₹100 crore in YSIL.

Further, the bank raised ₹15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalisation levels to well above regulatory requirement.

Further, rating also factors in expected capital infusion of Rs.8,898 crore by way of preferential allotment of equity shares and equity warrants; of which Rs.6,045 crore (Rs.5,093 crore as equity capital and Rs.951 crore as 25% of share warrant issue) is expected to be raised in FY23 while the remaining equity capital expected to be raised within 18 months from date of allotment of warrant and improvement in asset quality parameters amidst concerns over Covid-19 related stress and improvement in the liquidity profile of the bank.

Detailed description of the key rating drivers Key rating strengths Adequate capitalization with expectations of increase in capital cushion post expected equity raise The bank’s capitalisation levels have been supported by equity infused by domestic banks and financial institutions led by SBI which infused equity capital aggregating to Rs.10,000 crore as part of restructuring scheme.

Further, in July, 2020, the bank raised equity capital of Rs.15,000 crore through a follow-on public offer (FPO) supporting the capitalisation levels of the bank.

Further, the bank raised Rs.15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalization levels to well above regulatory requirement.

Stable for Tier II Bonds) acting in order to protect the depositors’ money by way of providing capital support, liquidity support and reconstitution of the Board of Directors for better governance and the subsequent capital raise of Rs.15,000 crore through Follow on Public Offer (FPO) in July, 2020 which has improved the capitalisation level of the bank increasing its ability to absorb asset quality shocks as well as providegrowth capital.

Domestic banks and financial institutions led by SBI infused equity capital aggregating to Rs.10,000 crore as a part of restructuring and SBI become single largest shareholder in YBL holding 48.21% shareholding in the bank as on March 31, 2020.

Further, in July, 2020, the bank raised equity capital of Rs.15,000 crore through FPO wherein SBI has invested additional Rs.1,740 crore and its shareholding in the bank stood at 30% as on December 31, 2021.

Further, the bank raised Rs.15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalization levels to well above r egulatory requirement.

Stable f or Tier II Bonds) acting in order to protect the depositors’ money by way of providing capital support, liquidity support and reconstitution of the board of directors for better governance and the subsequent capital raise of Rs.15,000 crore through Follow o n Public Offer (FPO) in July, 2020 which has improved the capitalisation level of the bank to absorb asset quality shocks as well as provide growth capital.

Domestic banks and financial institutions led by SBI infused equity capital aggregating to Rs.10,000 crore as a part of restructuring and SBI become single largest shareholder in YBL holding 48.21% shareholding in the bank as on March 31, 2020.

Further, in July, 2020, the bank raised equity capital of Rs.15,000 crore through FPO wherein SBI has invested additional Rs.1,740 crore and its shareholding in the bank stood at 30% as on June 30, 2021.

Further, the bank raised Rs.15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalization levels to well above regulatory requirement.

Stable’ for Tier II Bonds) and other financial institutions who together infused equity capital of Rs.10,000 crore to recapitalise the bank.

The ratings also factor in improvement in the bank’s capitalisation levels post the follow on public offer (FPO) of equity shares by which the bank raised additional equity capital of Rs.15,000 crore in July, 2020, and bank’s return to profitability in H1FY21.

State Bank of India (SBI) and a few domestic private sector financial institutions infused equity capital of Rs.10,000 crore in the bank as a part of restructuring.

Further, the bank raised Rs.15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalization levels to well above regulato ry requirement.

Stable’ for Tier II Bonds) and other financial institutions who together infused equity capital of Rs.10,000 crore to recapitalise the bank.

The ratings also factor in improvement in the bank’s capitalisation levels post the follow on public offer (FPO) of equity shares by which the bank raised additional equity capital of Rs.15,000 crore in July, 2020, and ba nk’s return to profitability in H1FY21.

State Bank of India (S BI) and a few domestic private sector financial institutions infused equity capital of Rs.10,000 crore in the bank as a part of restructuring.

Further, the bank raised Rs.15,000 crore from institutional investors in July 2020, which has led to improvement in its capitalization levels to well above regulatory requirement.

The bank raised equity capital of Rs.1,930 crore during Q2FY20 which helped the capitalization of the bank to an extent apart from capital optimization measures taken by the bank.

The bank had received binding offer of USD 1.2 billion (approximately Rs.8,400 crore) equity infusion in October 2019, subject to regulatory and other approvals.

The bank raised equity capital of Rs.1,930 crore during Q2FY20 which helped the capitalization of the bank to an extent apart from capital optimization measures taken by the bank.

The bank had received binding offer of USD 1.2 billion (approximately Rs.8,400 crore) equity infusion in October 2019, subject to regulatory and other approvals.

The bank has raised equity capital of Rs.1,930 crore during August, 2019 through a Qualified Institutional Placement (QIP) of equity shares which has helped the bank maintain its core capitalisation above the minimum regulatory requirement of 8% (including Capital Conservation Buffer) required as on March 31, 2020, along with reduction in risk weighted assets (RWA).

Further, CARE notes that the bank has received binding offers of USD 1.2 billion (approximately Rs.8,400 crore) equity infusion, subject to regulatory and other approvals.