Credit Rating- Revision

✓vESBANK YBL/CS/2026-27/51 June 30, 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 CareEdge Ratings In terms of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to update that CareEdge Ratings has issued a ratings release and Instrument wise rating actions have been detailed below: Instrument Existing Rating & Action Outlook Infrastructure Bonds, CARE AA-/Stable Upgraded to CARE AA+ / Stable Tier II Bonds Certificate of Deposits CARE A1+ Re-affirmed at CARE A1+ 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 www.yes.bank.in I shareholders@yes.bank.in I Tel: +91 (22) 5091 9800/6507 9800 YES BANK Limited, YES BANK House, Off Western Express Highway, Santacruz (El, Mumbai -400055 CIN: L65190MH2003PLC143249 CareEdge Press Release RATINGS Yes Bank Limited June 30, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action Infrastructure Bonds 4,670.00 CARE AA+; Stable Upgraded from CARE AA-; Stable Tier II Bonds 8,900.00 CARE AA+; Stable Upgraded from CARE AA-; Stable Certificate Of Deposit 20,000.00 CARE A1+ Reaffirmed Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-7. Rationale and key rating drivers CARE Ratings Limited (CareEdge Ratings) has upgraded the ratings assigned to the long-term instruments of Yes Bank Limited (YBL) to “CARE AA+; Stable” and reaffirmed the rating assigned to its short-term instruments at “CARE A1+”. The rating upgrade factors in sustained and steady growth in advances with continued focus on improving portfolio granularity, and expansion of the deposit base reflecting strengthening of the bank’s liability franchise. The upgrade also factors in improvement in asset quality, adequate capitalisation levels, and steady and consistent improvement in core profitability. The bank has demonstrated an improving earnings trajectory in sequential quarters, excluding non-recurring gains. The bank has also emerged as a technology and digital payments leader among peers, with dominant market share across UPI ecosystems. CareEdge Ratings also derives comfort from the presence of Sumitomo Mitsui Banking Corporation (SMBC), a global systemically important bank (G-SIB), as a strategic investor in YBL, with a shareholding of ~24.90% as on March 31, 2026. SMBC is currently the single largest shareholder in YBL and has inducted two nominee directors on the bank’s board. Going forward, YBL is expected to benefit from synergies with SMBC, including on business as well as on support functions such as risk, compliance, information security, etc. its global brand. SMBC’s presence is also expected to strengthen YBL’s ability to access capital markets for growth capital. SMBC also has a pre-emptive right to participate in future capital raises to maintain its shareholding, providing visibility on long-term capital support. The share of the bank’s retail and commercial loan book stood at ~71.68% of total advances as on March 31, 2026, moderating from ~73.72% as on March 31, 2025, while the corporate loan book share increased marginally to ~28.32% from ~26.28% over the same period. Despite this shift, directionally, the bank is expected to maintain a granular portfolio mix, with continued focus on enhancing the retail share in the overall advances mix, which should support asset yields. On the liabilities side, the Bank continued to deepen its granular deposit base. CASA stood at 35.10% as on March 31, 2026, compared with 34.26% as on March 31, 2025, while high-cost borrowings reduced to 14.02% of total liabilities from 17.22% as on March 31, 2025. The bank was able to mobilise deposits while reducing its cost of deposits during the year. Additionally, improvement in spreads is further expected to be supported by gradual rundown in Rural Infrastructure Development Fund (RIDF) balances, which stood at ~6% of total assets as on March 31, 2026, down from ~8.7% as on March 31, 2025. YBL’s asset quality has improved significantly, with net stressed assets to net worth declining to 1.93% in FY26 from 2.90% in FY25, primarily driven by write-offs and lower slippages. As on March 31, 2026, the bank’s overall capital adequacy ratio stood at 15.30%, with Tier-I capital at 13.80%, supported by healthy internal accruals. Capitalisation levels are expected to remain adequate over the near term, aided by the gradual reduction in deferred tax assets. The cost-to-income ratio continued to improve during FY26, while net interest margins remained stable despite macroeconomic headwinds. YBL’s credit cost stood at 0.21% during FY26, largely supported by recoveries from security receipts. CareEdge Ratings also notes the bank’s improving, albeit still moderate, profitability, with return 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. CareEdge Press Release RATINGS on total assets (RoTA) increasing to 0.80% in FY26 from 0.60% in FY25. YBL’s profitability is expected to improve from FY27, supported by stronger NIMs led by a gradual rundown in RIDF balances, low-cost deposits and improvement in its asset mix, stable fee income, and improved operating efficiency. The ratings, however, remain constrained by YBL’s moderate profitability metrics, notwithstanding the quarter-on- quarter improvement in pre-provisioning operating profit (PPOP). While slippages in the retail segment improved in Q4FY26, they continue to remain elevated and will remain a key monitorable. Going forward, the bank’s ability to grow its business while maintaining asset quality and improving operating efficiency, including sustained control over the cost-to-income ratio, will remain critical from a credit perspective. CARE Ratings Limited (CareEdge Ratings) has withdrawn ratings on certain Infrastructure bonds and Tier II Bonds due to redemption. Rating sensitivities: Factors likely to lead to rating actions Positive factors: Factors that could individually or collectively lead to positive rating action/upgrade: • Significant scale-up of operations along with sustained improvement in profitability. • Significant Strengthening of the deposit franchise, driven by a higher share of CASA and granular retail deposits, resulting in a structurally lower cost of funds and improved funding efficiency. Negative factors: Factors that could individually or collectively lead to negative rating action/downgrade: • Declining profitability with return on total assets (ROTA) remaining less than 0.75% on a sustained basis. • Higher-than-expected deterioration in asset quality, with gross non-performing assets (GNPA) level increasing to above 2.50%. • Weakening in capitalisation levels with capital cushion over minimum regulatory requirement remaining less than 3.00% on a sustained basis. Analytical approach: Standalone Along with the Standalone assessment of YBL, CareEdge has also considered the likely support it may provide to its subsidiary (YSIL) Outlook: Stable The stable outlook reflects CareEdge Ratings’ expectation that the bank will continue to witness improvement in its business performance while maintaining adequate capitalisation levels. Detailed description of key rating drivers: Key strengths Adequate capitalisation expected to aid steady growth The bank’s capitalisation levels have been supported by equity i [Showing first 8,000 characters — download PDF for full document]