YES Bank receives new rating from CRISIL
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YES Bank – one of the leading private sector banks in India has received a new rating from CRISIL. The ratings are as follows:
| Instrument | Amount (₹ Crore) | Rating Action | Previous Rating |
|---|---|---|---|
| Tier II Bonds (Under Basel III) | 13,387 | Crisil AA-/Stable | Upgraded from Crisil A+/Stable |
| Tier II Bonds (Under Basel III) | 554 | Withdrawn | Crisil A+/Stable |
| Infrastructure Bonds | 2,135 | Crisil AA-/Stable | Upgraded from Crisil A+/Stable |
| Infrastructure Bonds | 1,645 | Withdrawn | Crisil A+/Stable |
| Certificate of Deposits | 20,000 | Crisil A1+ (Reaffirmed) | — |
Credit rating agency Crisil has upgraded Yes Bank’s long-term ratings for its Tier-II bonds (under Basel III) and infrastructure bonds to ‘Crisil AA-/Stable’ from the earlier ‘Crisil A+/Stable’. The short-term rating for the bank’s certificates of deposit (CDs) has been reaffirmed at ‘Crisil A1+’.
At the same time, Crisil has withdrawn ratings for infrastructure bonds worth ₹1,315 crore and Tier-II bonds worth ₹554 crore after confirming that these instruments have been fully repaid, in line with its withdrawal policy.
The upgrade reflects Yes Bank’s steady progress in strengthening both its assets (loans) and liabilities (deposits). The bank has maintained comfortable capital and liquidity levels and has shown improved profitability — its return on assets (RoA) crossed 0.75% in the first quarter of FY26.
Yes Bank has been reshaping its business model to focus on more granular lending, meaning smaller, diversified loans rather than a few large exposures. The bank now operates in three clear segments:
- Retail: loans to individuals and small businesses (about 50% of total advances)
- Commercial: loans to small and medium enterprises (around 25%)
- Corporate: loans to large companies (around 25%)
In corporate and commercial lending, the bank is focusing more on working capital loans and lending to financially stronger companies.
Asset quality
The bank’s asset quality remains stable, with gross non-performing assets (GNPA) at 1.6% as of June 30, 2025, slightly better than 1.7% a year earlier. While bad loans in the retail segment have increased, the bank’s diversified loan book and cautious growth in FY25 helped it keep risks under control. Managing retail asset quality will continue to be a key area to watch.
Deposit growth
On the liabilities side, Yes Bank’s deposit base has been steadily improving since its reconstruction in March 2020. Total deposits stood at ₹2.76 lakh crore as of June 30, 2025, up from ₹2.65 lakh crore a year earlier and ₹1.05 lakh crore in March 2020. The share of low-cost current account and savings account (CASA) deposits has also grown to 32.8%, up from the 30-31% range seen consistently before FY22, although slightly below its peak of 34.3% in March 2025.
Overall, Crisil’s upgrade reflects confidence in Yes Bank’s improved financial position, focused strategy, and ability to maintain stability in both loan quality and deposit growth.
