Update on Moody''s Investor Service

YBL/CS/2026-27/121 October 20, 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 Moody’s Investors Service 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 Moody’s Investors Service has issued a ratings release and Instrument wise rating actions have been detailed below: Instrument Existing Rating Action Long-Term Foreign Currency Issuer Ba1 Reaffirmed Rating Long-term (Local and Foreign Ba1 Reaffirmed Currency) Deposit Rating Baseline Credit Assessment (BCA) and Ba2 Reaffirmed Adjusted BCA Senior Unsecured (Foreign Currency) (P)Ba1 Reaffirmed Medium-Term Note Program The outlook on the above rating remains Stable 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 Rating Action: Moody's Ratings affirms Yes Bank's Ba1 deposit ratings; outlook stable 20 Oct 2026 Singapore, October 20, 2026 -- Moody's Ratings (Moody's) has affirmed Yes Bank Limited's (Yes Bank) long-term (LT) foreign currency (FC) and local currency (LC) bank deposit ratings at Ba1, as well as affirmed its Baseline Credit Assessment (BCA) and Adjusted BCA at ba2. We have also affirmed its LT FC issuer rating at Ba1, LT FC and LC Counterparty Risk Ratings (CRR) at Ba1, LT Counterparty Risk (CR) Assessment at Ba1(cr), as well as the senior unsecured medium-term note program rating at (P)Ba1. We have affirmed the Not Prime (NP) short-term (ST) FC and LC bank deposit ratings as well as NP ST FC and LC CRR and NP(cr) ST CR Assessment. At the same time, we have affirmed Yes Bank Limited, GIFT City Branch's LT FC and LC CRR at Ba1, its senior unsecured medium-term note program rating at (P)Ba1, and LT CR Assessment at Ba1(cr). We have affirmed the NP ST FC and LC CRR and the branch's NP(cr) ST CR Assessment. We have maintained the stable outlook on the ratings, where applicable. RATINGS RATIONALE The affirmation reflects our expectation that the bank will maintain its overall credit profile despite the decline in its Common Equity Tier 1 (CET1) ratio following the Supreme Court ruling invalidating the write- down of its additional tier 1 (AT1) securities in 2020. The impact of the lower CET1 ratio is mitigated by the positive trends in the bank's financial metrics, including improving funding, asset quality and profitability. The Ba1 deposit ratings are one notch above the bank's ba2 BCA, reflecting our expectation of a moderate likelihood of support from the Government of India (Baa3 stable) in times of need. Tangible Common Equity to risk-weighted assets (TCE/RWA) ratio was 14.8% as of March 2026, indicating a moderate capital position prior to the ruling. The reinstatement of the AT1 securities will weaken Yes Bank's capital position. Management estimates the bank's CET1 ratio will decline to 11.4% from 13.7% on pro-forma basis as of September 2026 while the Tier 1 Capital ratio will remain unchanged because the AT1 securities will count towards regulatory capital adequacy. The reinstatement would also result in a one- time negative impact on its profitability. Despite this negative impact, we expect Yes Bank to replenish its capital buffers by raising new equity capital to a level that is sufficient to support loan growth, while strengthening its loss absorbing buffers. On October 15, the Supreme Court of India upheld the Bombay High Court's decision to set aside Yes Bank's AT1 securities write-down and dismissed appeals filed by the bank, the Reserve Bank of India (RBI) and the Government of India. The court ordered reinstatement of the AT1 securities because the proper legal process for writing them down had not been followed; it did not question AT1 securities' ability to absorb losses at the point of non-viability. It remains unclear whether further legal options are considered by the bank. Yes Bank's funding profile has strengthened in recent years but remains weaker than that of large Indian peers, reflecting a less established deposit franchise and consequently higher funding costs. Core banking liquidity remains stable and in line with the peers, with high-quality liquid assets accounting for around 17.9% of tangible banking assets as of March 2026. Yes Bank's liquidity coverage ratio of 131% as of quarter ended September 2026 is higher than peer average and was further supported by strong inflows under the RBI's FCNR(B) concessional swap window. Asset quality has improved materially, with the gross nonperforming loan ratio declining to 1.2% as of September 2026. Annualised net income to tangible assets improved to 0.8% in the half year ending September 2026, from 0.7% in the comparable period last year, reflecting improvements in asset mix and its funding access. However, we expect provisioning costs to normalize from the cyclically low levels as recoveries from legacy stressed assets decline. Risks remain from rapid growth in small and medium-sized enterprise and retail lending, including those sourced through third-party channels exposes the bank to unseasoned risks. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The bank's ratings could be upgraded if the BCA is upgraded by more than one notch or if we assess a higher level of affiliate support from Sumitomo Mitsui Banking Corporation (SMBC, A1 stable, a3) or government support. A higher level of affiliate support would be based on Yes Bank assuming greater importance to SMBC including a sustained increase in its contribution to consolidated earnings or more explicit support mechanism such as committed funding lines, or increased operational and brand integration. Yes Bank's BCA could be upgraded if there is further sustained improvement in the quality of funding and profitability, while maintaining stable asset quality and restoring its capital to levels commensurate with similarly rated global peers. We could downgrade Yes Bank's ratings if its funding or asset quality materially weakens, or if its TCE/RWA declines below 11% without clear visibility into a capital raising plan, or if its return on tangible assets declines below 0.5% on a sustained basis. We could also downgrade Yes Bank's ratings if India's sovereign rating is downgraded. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks published in September 2026 and available at https://ratings.moodys.com/rmc-documents/474049. Alternatively, please see the Rating Methodologies page on https://ratings.moodys.com for a copy of this methodology. Yes Bank's 'Assigned BCA' of ba2 is set more than two notches below the 'Financial Profile' initial score of baa2 to reflect the sharp decline in its core capital, unseasoned asset risk and modest funding. Yes Bank Limited is headquartered in Mumbai with total assets of INR5.1 trillion (USD54.3 billion) as of 30 September 2026. REGULATORY DISCLOSURES For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions. For any affected securities or rated entities receiving direct credit support/credit substitution from another entity or entities subject to a credit rating action (the supporting entity), and whose ratings may change as a result of a credit rating action as to the supporting entity, the associated regulatory disclosures will relate to the supporting entity. Exceptions to this approach may be applic [Showing first 8,000 characters — download PDF for full document]