Update on Credit Ratings by CRISIL

YBL/CS/2026-27/072 August 05, 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 CRISIL 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 CRISIL has issued a ratings release and Instrument wise rating actions have been detailed below: Instrument Existing Rating & Action Outlook Infrastructure Bonds , CRISIL AA-/Stable Upgraded to CRISIL AA+ / Stable Basel III Tier II Bonds, Certificate of Deposits CRISIL A1+ Re-affirmed at CRISIL 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 8/4/26, 9:45 PM Rating Rationale Rating Rationale August 04, 2026 | Mumbai YES Bank Limited Long-term rating upgraded to 'Crisil AA+/Stable'; Short-term rating reaffirmed Rating Action Regulator of the Name Of Instrument Rating Outstanding with Outlook instrument Rs.2135 Crore Infrastructure Bonds Crisil AA+/Stable (Upgraded from 'Crisil AA-/Stable') SEBI Rs.10042 Crore Tier II Bonds (Under Crisil AA+/Stable (Upgraded from 'Crisil AA-/Stable') SEBI Basel III) Rs.20000 Crore Certificate of Deposits Crisil A1+ (Reaffirmed) RBI Rs.545 Crore Tier II Bonds (Under Basel Withdrawn SEBI III) Rs.2800 Crore Tier II Bonds (Under Withdrawn MCA Basel III) Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. 1 crore = 10 million Refer to Annexure for Details of Instruments & Bank Facilities Detailed Rationale Crisil Ratings has upgraded its long term rating on the Tier-II bonds (under Basel III) and infrastructure bonds of Yes Bank Limited (Yes Bank) to 'Crisil AA+/Stable' from 'Crisil AA-/Stable’. Crisil Ratings has also reaffirmed its ‘Crisil A1+’ short term rating on the certificates of deposit (CD). Crisil Ratings has also withdrawn its rating on Tier II Bonds (under Basel III) of Rs 3,345 crore (See ‘Annexure 'Details of Rating Withdrawn' for details) in line with its withdrawal policy. Crisil Ratings has received independent confirmation that these instruments are fully redeemed. The rating action is driven by an improvement in the credit profile of Yes Bank, as well as a change in the analytical approach to factor in the expectation of support from Sumitomo Mitsui Banking Corporation (SMBC)―the single largest shareholder― on an ongoing basis as well as in the event of any distress. Yes Bank's credit profile is supported by consistent improvement in its profitability, a trend that is expected to continue over the medium term. Its liability franchise has also strengthened, reflected in a lower cost of deposits; this is likely to be sustained. Asset quality metrics remain controlled, while capitalisation levels continue to be comfortable. Yes Bank’s earnings profile has exhibited sustained improvement, with the return on assets (RoA) increasing to 0.9% in first quarter of fiscal 2027 and 0.8% in fiscal 2026 from 0.6% in fiscal 2025 (0.3% in fiscal 2024). The improvement in RoA in fiscal 2026 was supported by lower provisions, benefiting from recoveries from the securities receipt (SR) book, and higher non-interest income. Net interest margin (NIM) remained stable despite the falling interest rate environment as the bank was also able to reduce its cost of deposits in tandem, thereby also narrowing the gap with larger peers with respect to deposits costs. The bank’s average cost of deposits declined to 5.7% in fiscal 2026 from 6.1% in fiscal 2025; this trajectory continued in Q1 fiscal 2027 as well with cost of deposits falling further to 5.4%. While profitability remains lower than larger peers, as the benefit from lower deposit costs plays out, and the drag on interest income from investments in the Rural Infrastructure Development Fund (RIDF) to meet the priority sector lending (PSL) shortfall reduces with the fall in share of such investments, it should continue to improve hereon. The business profile of Yes Bank, both assets and liabilities, is also expected to benefit from the association with SMBC. SMBC, one of Japan's leading banks and the core unit of Sumitomo Mitsui Financial Group (SMFG), invested Rs 16,333 crore in Yes Bank through two secondary purchases in September 2025, thereby acquiring 24.22% ownership in the bank. SMBC subsequently hiked its stake to 24.9%. In the period since its induction as the Bank's single largest shareholder, SMBC has exhibited close involvement in, and provided considerable support for, the bank’s strategic decision-making through the appointment of two senior nominee directors to the Board. The collaboration framework is expected to benefit the bank through potential business synergies, particularly in the wholesale banking segment, by providing access to SMBCs global and Indian network. This would also strengthen the bank's liabilities profile by facilitating the acquisition of new current and savings account customers. Further, the association is expected to contribute positively to Yes Bank’s risk management, governance, and operational capabilities through the transfer of SMBC’s global best practices; steps in this direction have already been taken. Additionally, as India represents a strategically important https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/YESBankLimited_August 04_ 2026_RR_401441.html 1/10 8/4/26, 9:45 PM Rating Rationale market for SMBC, and Yes Bank forms an integral part of SMBC’s overall India franchise, this underpins expectations of support from SMBC, as and when required. In view of the strategic importance of Yes Bank within SMBC’s India franchise, and the expected positive impact of the association on the bank’s overall business profile. Crisil Ratings has reassessed its analytical approach towards the bank. The revised analytical approach takes into account the support Yes Bank is likely to receive from its single largest shareholder, SMBC, on an ongoing basis and in times of distress. Analytical Approach For arriving at the ratings, Crisil Ratings has combined the business and financial risk profiles of Yes Bank and its subsidiary, Yes Securities (India) Ltd. Crisil Ratings has also factored in the support that Yes Bank is expected to receive from its single largest shareholder, SMBC, as and when required. Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation. Key Rating Drivers - Strengths Strategic importance to, and expectation of strong support from the single largest shareholder, SMBC In September 2025, SMBC acquired a 24.22% stake in Yes Bank through secondary purchases and subsequently increased its holding to 24.9% in December 2025. Following the induction of SMBC as the Bank’s single largest shareholder, the Bank is expected to benefit from SMBC’s oversight on strategic, managerial and operational matters through its nominee directors. With over 1,30,000 employees across a footprint of 40 countries, and assets exceeding USD 2.06 trillion, SMBC is a global leader offering Corporate & Investment Banking, Structured Finance, Corporate Finance, Global Markets and Sustainability Solutions. Yes Bank’s criticality to SMBC is underpinned by the former’s established presence in the financial sector in India. Given SMBC's existing operations in India and the country's significance as a key strategic market for the group, Yes Ban [Showing first 8,000 characters — download PDF for full document]