Credit Rating- Revision

YBL/CS/2026-27/057 July 09, 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.: Update on Credit Ratings by ICRA In terms of Regulation 30 and Regulation 51(2) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to update that ICRA has issued a ratings release and Instrument wise rating actions have been detailed below: Instrument Existing Rating Action & Outlook Infrastructure Bonds and ICRA AA-/Stable Upgraded to ICRA AA / Stable Basel III Tier II Bonds Basel III Tier I Bonds ICRA D Re-affirmed (These instruments were written down as part of the restructuring of liabilities) We request you to kindly take the same on your record. The press release 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LIMITED Sanjay Abhyankar Company Secretary July 09, 2026 Yes Bank Limited: Ratings upgraded/reaffirmed; upgraded and withdrawn for matured instruments Summary of rating action Previous rated amount Current rated amount Instrument* Rating action (Rs. crore) (Rs. crore) [ICRA]AA (Stable); upgraded from [ICRA]AA- Infrastructure bonds 5,385.00 5,385.00 (Stable) [ICRA]AA (Stable); upgraded from [ICRA]AA- Infrastructure bonds 315.00 - (Stable) and withdrawn [ICRA]AA (Stable); upgraded from [ICRA]AA- Basel III Tier II bonds 7,000.80 7,000.80 (Stable) [ICRA]AA (Stable); upgraded from [ICRA]AA- Basel III Tier II bonds 3,345.00 - (Stable) and withdrawn Basel III Tier I bonds** 8,415.00 8,415.00 [ICRA]D; reaffirmed Total 24,460.80 20,800.80 *Instrument details are provided in Annexure II; ** Written down as a part of the restructuring of liabilities Rationale The rating upgrade factors in the improvement in Yes Bank Limited’s (YBL) financial profile with the rising scale of operations supported by the increasing share of granular loans and steadily improving asset quality indicators. Moreover, ICRA notes that the bank’s profitability is also aided by sustained recoveries from security receipts (SRs, which are fully provided). 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. Going ahead, ICRA expects YBL 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 takes note of the completion of the stake acquisition (24.9%) by Sumitomo Mitsui Banking Corporation1 (SMBC) in September 2025, following which SMBC emerged as the bank’s single largest shareholder, while State Bank of India (SBI) remains one of the major stakeholders. This further strengthens YBL’s shareholder profile and 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. 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. The bank’s vulnerable book (comprising 31-90 days overdue and the standard restructured book) declined to ~7%2 of the overall core capital as on March 31, 2026 from ~10%2 as on March 31, 2025, though it remains monitorable. The continued reduction in the stressed assets pool has also translated into a lower fresh non- performing advances (NPA) generation rate3. This, coupled with sustained recoveries from stressed exposures, has enabled the bank to report lower net credit costs, supporting its overall earnings profile. However, the ratings continue to be constrained by YBL’s below-average interest spreads primarily on account of drag from high share of low-yielding assets {RIDF deposits towards shortfall in priority sector lending (PSL)} 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. Going forward, YBL’s ability to continue to 1 Rated A1/Stable by Moody’s Investors Service with baseline credit assessment (BCA) of A3 2 All ratios as per ICRA’s calculations 3 Fresh NPA generation = Gross fresh slippages/Opening standard advances www.icra.in Sensitivity Label : Public Page | scale up its loan book, further granularise its deposit franchise and improve its funding cost and cost-to-income ratio will remain key for strengthening its core operating profitability. Additionally, its ability to contain fresh slippages from the residual vulnerable book in the backdrop of the weakening macroeconomic environment, spillovers from geopolitical conflicts and supply chain constraints will remain a key monitorable. This assumes greater significance, given YBL’s relatively modest core profitability (excluding recoveries from SRs), requiring credit costs to remain under control. The impending judgement of the Supreme Court in the matter relating to the writeback of the Additional Tier-I (AT-1) bonds, amounting to Rs. 8,415 crore, remains a key monitorable as any writeback, in part or full, could result in the relative weakening of the reported core capital cushions as well as the solvency4 level. The Stable outlook reflects ICRA’s view that the bank will maintain a steady credit profile while further scaling up. Recoveries from SRs are expected to moderate, though the core operating profitability is expected to improve, supporting the overall return indicators. ICRA has also reaffirmed and withdrawn the rating assigned to the Rs. 315.00-crore infrastructure bonds and Rs. 3,345.00-crore Basel III Tier II bonds as these have been redeemed with no amount outstanding against the same. The rating was withdrawn in accordance with ICRA’s policy on the withdrawal of credit ratings (click here for the policy). Key rating drivers and their description Credit strengths Steady growth in scale of operations with improving granularity of loan mix – YBL’s scale of operations has increased steadily with its advances book growing to Rs. 2.73 lakh crore as on March 31, 2026 from Rs. 1.71 lakh crore as on March 31, 2020 (Rs. 2.46 lakh crore as on March 31, 2025), rising at a compound annual growth rate (CAGR) of 8% during this period (11% growth in FY2026). The growth was accompanied by an improvement in portfolio granularity, with the share of the retail book (including micro-enterprise book) increasing to 46% as on March 31, 2026 from around 24% as on March 31, 2020. Additionally, YBL’s deposit base continues to expand, increasing to Rs. 3.19 lakh crore as on March 31, 2026 from Rs. 1.05 lakh crore as on March 31, 2020 (Rs. 2.85 lakh crore as on March 31, 2025), rising at a compound annual growth rate (CAGR) of 20% during this period (12% growth in FY2026). CASA and retail term deposits continued to grow steadily, with a combined share of 64% of the overall deposits as on March 31, 2026 (64% as on March 31, 2025). The share of the top 20 depositors in total deposits also remained stable at 12% as on March 31, 2026. The cost of interest-bearing funds differential vis-à-vis the private sector average moderated to 40 basis points (bps) in FY2026 (72 bps in FY2025) amid the faster decline in its cost of deposits. Gi [Showing first 8,000 characters — download PDF for full document]