YES Bank shares near Rs 24 level: Why this private banking stock rose today
S&P said YES Bank will benefit from extraordinary support from the Sumitomo Mitsui Banking Corp. (SMBC) group, given its belief that the latter is a moderately strategically important affiliate of SMBC.
- Jul 10, 2026,
- Updated Jul 10, 2026 10:11 AM IST
Shares of YES Bank gained over 1 per cent in Friday's trade after S&P Global Ratings and ICRA assigned issuer credit ratings to the lender with a 'stable' outlook, while ICRA also upgraded the rating on YES Bank's infrastructure bonds to ICRA AA. The stock rose 1.39 per cent to hit a high of Rs 23.98 apiece on BSE, taking its three-month rise to 25 per cent.
S&P Global assigned a Long Term rating of S&P BB+ to YES Bank with outlook stable. Besides, it assigned a short term credit rating of S&P B on the private bank.
S&P said YES Bank will benefit from extraordinary support from the Sumitomo Mitsui Banking Corp. (SMBC) group, given its belief that the latter is a moderately strategically important affiliate of SMBC. YES Bank's affiliation with SMBC can accelerate improvements in its small market share, low profitability, and higher-than-average funding costs.
"We also expect internal capital generation and capital raising to support loan growth over the next two years. We assigned our 'BB+' long-term and 'B' short-term-issuer credit ratings to Yes Bank. The stable outlook on the long-term rating reflects our view that SMBC will provide ongoing and extraordinary support as needed and Yes Bank will gradually improve profitability, asset quality, and funding while maintaining sufficient capitalization," S&P said.
ICRA, on the other hand, said its rating upgrade factors in the improvement in YES Bank's financial profile with the rising scale of operations supported by the increasing share of granular loans and steadily improving asset quality indicators.
It said the bank’s profitability is also aided by sustained recoveries from security receipts.
"While its core profitability (i.e. profitability excluding recoveries from SRs) remains moderate, it continues to improve. Overall, the continuing decline in the stressed assets pool has also lent some stability to the earnings and capital position," ICRA said.
Going ahead, this rating agency expects YES Bank to further strengthen its core operating profitability and achieve a more sustainable and healthy profitability profile while recoveries from SRs are expected to moderate.
ICRA also took note of the completion of the stake acquisition (24.9 per cent) by SMBC in September 2025. The development is as further strengthening YES Bank's shareholder profile.
The bank is expected to draw some synergies from the pool of SMBC’s customers and enhance its revenue stream, which will help improve its earnings profile, ICRA said.
"The impact of the same would remain monitorable. The ratings also derive support from YBL’s comfortable capitalisation profile and the steady growth in its deposit base, although the share of wholesale deposits remains relatively high.
Meanwhile, ICRA said the YES Bank ratings are constrained by YES bank's below-average interest spreads primarily on account of drag from high share of low-yielding assets and the elevated cost-to-income ratio, which leads to weak operating profitability and return metrics.
"Nevertheless, ICRA notes the steady reduction in the share of low-yielding assets, which has helped the bank improve its net interest margin (NIM) compared to the reduction in the sector’s NIMs. While deposit growth has been healthy and the share of current account savings account (CASA) has also improved, the share of corporate/wholesale deposits remains relatively high compared to peers," it said.
Shares of YES Bank gained over 1 per cent in Friday's trade after S&P Global Ratings and ICRA assigned issuer credit ratings to the lender with a 'stable' outlook, while ICRA also upgraded the rating on YES Bank's infrastructure bonds to ICRA AA. The stock rose 1.39 per cent to hit a high of Rs 23.98 apiece on BSE, taking its three-month rise to 25 per cent.
S&P Global assigned a Long Term rating of S&P BB+ to YES Bank with outlook stable. Besides, it assigned a short term credit rating of S&P B on the private bank.
S&P said YES Bank will benefit from extraordinary support from the Sumitomo Mitsui Banking Corp. (SMBC) group, given its belief that the latter is a moderately strategically important affiliate of SMBC. YES Bank's affiliation with SMBC can accelerate improvements in its small market share, low profitability, and higher-than-average funding costs.
"We also expect internal capital generation and capital raising to support loan growth over the next two years. We assigned our 'BB+' long-term and 'B' short-term-issuer credit ratings to Yes Bank. The stable outlook on the long-term rating reflects our view that SMBC will provide ongoing and extraordinary support as needed and Yes Bank will gradually improve profitability, asset quality, and funding while maintaining sufficient capitalization," S&P said.
ICRA, on the other hand, said its rating upgrade factors in the improvement in YES Bank's financial profile with the rising scale of operations supported by the increasing share of granular loans and steadily improving asset quality indicators.
It said the bank’s profitability is also aided by sustained recoveries from security receipts.
"While its core profitability (i.e. profitability excluding recoveries from SRs) remains moderate, it continues to improve. Overall, the continuing decline in the stressed assets pool has also lent some stability to the earnings and capital position," ICRA said.
Going ahead, this rating agency expects YES Bank to further strengthen its core operating profitability and achieve a more sustainable and healthy profitability profile while recoveries from SRs are expected to moderate.
ICRA also took note of the completion of the stake acquisition (24.9 per cent) by SMBC in September 2025. The development is as further strengthening YES Bank's shareholder profile.
The bank is expected to draw some synergies from the pool of SMBC’s customers and enhance its revenue stream, which will help improve its earnings profile, ICRA said.
"The impact of the same would remain monitorable. The ratings also derive support from YBL’s comfortable capitalisation profile and the steady growth in its deposit base, although the share of wholesale deposits remains relatively high.
Meanwhile, ICRA said the YES Bank ratings are constrained by YES bank's below-average interest spreads primarily on account of drag from high share of low-yielding assets and the elevated cost-to-income ratio, which leads to weak operating profitability and return metrics.
"Nevertheless, ICRA notes the steady reduction in the share of low-yielding assets, which has helped the bank improve its net interest margin (NIM) compared to the reduction in the sector’s NIMs. While deposit growth has been healthy and the share of current account savings account (CASA) has also improved, the share of corporate/wholesale deposits remains relatively high compared to peers," it said.