"The revision in the ratings assigned to the debt instruments of YES Bank
factors in the improvement in the credit profile of the bank post the implementation of the reconstruction scheme announced by the Reserve Bank of India (RBI) and approved by Government of India (GOI) from March, 2020," CARE Ratings said in its rationale.
Besides, 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. "The ratings also factors in improvement in bank's liquidity profile, majorly on account of stabilization in its deposits which also enabled the bank to repay the SLF (special liquidity facility) in September, 2020 prior to the due date," it said.
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