Credit Rating- New

YBL/CS/2026-27/058 July 9, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot no. C/1, G Block, Corporate Relations Department Bandra - Kurla Complex, Bandra (E) P.J. Towers, Dalal Street Mumbai - 400 051 Mumbai – 400 001 NSE Symbol: YESBANK BSE Scrip Code: 532648 Dear Sir/Madam, Sub.: Intimation of Credit Rating assigned by S&P Global Ratings In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we hereby inform you that International Credit Rating agency S&P Global Ratings has assigned a credit rating to YES BANK Limited (the “Bank”) as detailed below. This represents the Bank’s first rating coverage by S&P Global Ratings: Instrument Rating and Rating Action Issuer Credit Rating Long Term: S&P BB+ / Stable (Assigned) Short Term: S&P B (Assigned) We request you to kindly take the same on your record. The press release issued by S&P Global on ratings is enclosed herewith. The same is also being hosted on the Bank’s website at www.yes.bank.in Thanking you, Yours faithfully, For YES BANK LIMITED Sanjay Abhyankar Company Secretary S&PGlobal Ratings RatingsDirect® Research Update: Yes Bank Ltd. Assigned 'BB+/B' Ratings; Outlook Stable July 9, 2026 Primary Contact Overview Shinoy Varghese • Yes Bank Ltd. will benefit from extraordinary support from the Sumitomo Mitsui Banking Corp. Singapore (SMBC) group, given our belief it is a moderately strategically important affiliate of SMBC. 65-6597-6247 shinoy.varghese1 • The bank's affiliation with SMBC from 2025 can accelerate improvements in its small market @spglobal.com share, low profitability, and higher-than-average funding costs. Secondary Contact • We also expect internal capital generation and capital raising to support loan growth over the next two years. Deepali V Seth Chhabria Mumbai • We assigned our 'BB+' long-term and 'B' short-term-issuer credit ratings to Yes Bank. 912261373187 deepali.seth • The stable outlook on the long-term rating reflects our view that SMBC will provide ongoing @spglobal.com and extraordinary support as needed and Yes Bank will gradually improve profitability, asset quality, and funding while maintaining sufficient capitalization. Rating Action On July 9, 2026, S&P Global Ratings assigned its 'BB+' long-term and 'B' short-term issuer credit ratings to Yes Bank. The outlook on the long-term rating is stable. Rationale Our ratings on Yes Bank reflect our expectation of extraordinary support from SMBC, if needed. The ratings get one notch of uplift for potential extraordinary support from SMBC. We believe SMBC will provide extraordinary support to Yes Bank if required in times of financial stress. This reflects our view that the bank is a moderately strategic affiliate of SMBC, given its operations in the Indian market, which is a high priority growth corridor for SMBC. We see SMBC's strategic influence on Yes Bank through its representation on the board. The bank will benefit from sharing global best practices in areas like risk, audit, IT, finance, and compliance functions, and strengthening its risk management culture. SMBC is the largest shareholder of the bank, after it acquired a 24.9% stake in 2025. www.spglobal.com/ratingsdirect July 9, 2026 1 Yes Bank Ltd. Assigned 'BB+/8' Ratings; Outlook Stable The starting point for our ratings on Yes Bank is the 'bbb-' anchor we derive for any bank operating predominantly in India. Yes Bank's loan exposure is almost entirely in India. We assess the bank's stand-alone credit profile (SACP) at 'bb', one notch below the issuer credit rating. Yes Bank's adequate capitalization underpins its creditworthiness. We expect the bank to gradually improve its profitability, asset quality, and funding and gain market share over the next one to two years. Yes Bank's business position reflects its modest market share and low profitability. Yes Bank will gradually expand its market share and narrow its profitability gap with industry peers. As of late 2025, the bank held a modest market share of approximately 1.2% in loans and 1.3% in deposits. While a recent recovery in net interest margins and lower credit costs improved its return on assets to 0.8% for fiscal 2026 (ended March 31, 2026), the return still lagged the industry average of 1.3%. We expect Yes Bank's market position to benefit from its association with SMBC. The bank is poised to benefit from enhanced business opportunities through collaboration with SMBC's existing presence in India, including its branches and SMFG India Credit Co. Ltd. via client referrals and loan syndication. Yes Bank's capitalization is likely to benefit from steady internal capital generation. We anticipate the bank's risk-adjusted capital (RAC) ratio will stabilize at 8.0%-8.5% through fiscal 2027-2028, compared with 9.0% in March 2026. This reflects our expectation that its loan growth will gain momentum over the next two fiscal years. We project Yes Bank's profitability will moderately rise, with its return on assets likely to exceed 0.9% by fiscal 2028 from 0.8% in fiscal 2026. The bank's net interest margin should improve by approximately 30 basis points (bps) over the next two fiscal years, narrowing its gap with industry peers. Driving this expansion will be a declining proportion of lending related to India's rural infrastructure development fund and lower funding costs. Funding costs will likely benefit from an improvement in Yes Bank's low-cost current account savings account (CASA) deposits. Additionally, the bank's partnership with SMBC could help the bank mobilize corporate relationship-based current accounts and access other funding sources such as external commercial borrowings and offshore bonds. Yes Bank's average cost of funding of 6.0% remains high among rated peers due to the bank's reliance on wholesale funding and premium pricing for certain retail deposits. Portfolio granularity has improved, but unsecured retail slippage is elevated. High new nonperforming loan formation in Yes Bank's retail loan portfolio in the past two years reflects rapid growth in unsecured lending and a higher proportion of riskier loans without commensurate investments in collection infrastructure. Additionally, higher funding costs than peers have lowered the bank's proportion of high-quality mortgage loans. However, recent slippages have improved on corrective actions such as enhanced collection and recovery mechanisms, tighter underwriting, and customer sourcing discipline. We expect Yes Bank's credit growth to be 14%-15% in fiscal 2027-2028, up from 11% in fiscal 2026. The bank's asset quality may come under pressure over the next two years amid macroeconomic volatility. As loan growth picks up, the bank's ability to preserve underwriting standards and limit incremental slippage will remain key. We expect Yes Bank's credit cost to remain below the average for the industry, supported by recoveries from legacy security receipts. Yes Bank has fully provided for these, with an outstanding balance of Indian rupee 34.7 billion. Credit costs could rise to approximately 50 bps in fiscal 2027 and 70 bps of customer loans in fiscal 2028. The uptick in fiscal 2028 reflects an www.spglobal.com/ratingsdirect July 9, 2026 2 Yes Bank Ltd. Assigned 'BB+/8' Ratings; Outlook Stable increase in steady-state credit costs under the Reserve Bank of India's expected credit loss framework and tapering recoveries from security receipts. Yes Bank has rebalanced its loan portfolio toward retail and small and midsize enterprise segments from a historically corporate-heavy loan book. This aligns with some rated peers. As of end-March 2026, retail loans accounted for about 46% of the bank's total advances while the commercial segment (SME business) accounted for 26% and corporate and institutional banking made up 28%. Yes Bank's underwriting standards are improving, in our view. Better risk management and resolution of stressed legacy assets have led to [Showing first 8,000 characters — download PDF for full document]