India Ratings and Research has revised its ratings watch on Yes Bank Ltd. to “evolving” from “negative”—indicating the possibility of either an upgrade, downgrade or affirmation of the ratings.
The ratings watch revision follows the systemic support Yes Bank received recently, in terms of both equity and liquidity, from the new set of investors and the Reserve Bank of India, the lender said in a regulatory filing today.
India Ratings had downgraded Yes Bank ratings and maintained them as negative on March 6, 2020—a day after the lender was placed under moratorium that barred settlement and transaction requests.
The government notified the Yes Bank reconstruction scheme last week.
On March 14, the bank declared its third quarter results. Gross non-performing assets rose to Rs 40,709.20 crore, or 18.87 percent of the bank's total loan book. The bank's net NPA rose to Rs 11,114 crore, or 5.97 percent of net advances.
"This implies the additional recognition of Rs 230 billion as non-performing till the time of publishing the 3Q FY20 results and not just end-December 2019,” Yes Bank said in the exchange filing. “Including this, the total stressed book including non-fund limits to the same accounts is about Rs 490 billion.”
Also Read: Yes Bank Starts Down The Long Road To Regaining Depositor Trust
On Thursday, Yes Bank shares fell as much as 29.20 percent to Rs 42.80 apiece on the NSE, compared to benchmark Nifty 50's 7.51 percent intraday decline.
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