Credit Rating- Revision

✓vESBANK YBL/CS/2026-27/76 August 14, 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 India Ratings 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 India Ratings has issued a ratings release and Instrument wise rating actions have been detailed below: Instrument Existing Rating & Action Outlook Infrastructure bonds IND AA- / Stable IND AA+/ Stable Basel III Tier 2 bonds IND AA- / Stable IND AA+/ 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 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 India Ratings &Researcn A Fitch Group Company India Ratings Upgrades Yes Bank and Its Bonds to 'IND AA+'/Stable Aug 14, 2026 I Yes Bank Ltd I Private Sector Bank India Ratings and Research (Ind-Ra) has upgraded Yes Bank Ltd's (YBL) Issuer Rating and the rating on its bonds to 'IND AA+' from 'IND AA-' with a Stable Outlook as follows: Details of Instruments Instrument Regulator of Date of Coupon Maturity Size of Issue Rating Assigned along Rating Description Instrument Issuance Rate(%) Date (INR million) with Watch/Outlook Action Issuer rating # - - - - IND AA+/Stable Upgraded Infrastructure SEBI - - - 32,500 IND AA+/Stable Upgraded bonds" Basel 111 tier 2 Refer ISIN - - - 110,000 IND AA+/Stable Upgraded bonds* annexure # There is no instrument being rated and hence, Regulator of the Instrument is not applicable. The rating scale and definitions are being followed as stipulated in SEBI Master Circular for CRAs. *Details in the annexure "Un utilised Analytical Approach Ind-Ra continues to take a fully consolidated view of YBL and its majorly owned subsidiary, Yes Securities Limited, to arrive at the rating. The agency also factors into the rating YBL's strengthened credit profile after a strategic investment by Sumitomo Mitsui Banking Corporation (SMBC) for a 24.9% stake in the bank at end-1QFY27. Ind-Ra views SMBC's board representation and involvement across business and control functions as positive for YBL's governance framework, risk management practices, and franchise development. Furthermore, SMBC's pre-emptive rights to participate in capital issuances provide additional financial flexibility and support YBL's long-term growth objectives. Detailed Rationale of the Rating Action The upgrade reflects YBL's strengthened credit profile, supported by an improvement in profitability, asset quality, and franchise profile. The bank reported an RoA of 0.9% in 1QFY27, supported by improving NIMs, healthy non-interest income, lower credit costs, and recoveries from legacy stressed assets. The increasing contribution of granular retail and SME segments, along with sustained growth in granular deposits, has improved portfolio diversification and reduced concentration risks. Asset quality indicators have strengthened, with the GNPA ratio declining to 1.3% and the NNPA ratio to 0.2% at end-1QFY27. The upgrade also factors in the strategic investment by SMBC, whose involvement is likely to support YBL's governance framework, risk management practices, and franchise development over the medium term. The rating continues to be supported by YBL's adequate capitalisation, with a capital-to-risk weighted assets ratio (CRAR) of 15.1% and Tier 1 ratio of 14.0% at end-1QFY27. Internal accruals remain sufficient to support the bank's growth plans, while deferred tax assets (DTAs) of INR43.8 billion provide additional capital accretion potential over the medium term. However, the rating remains constrained by investments in low-yielding RIDF deposits, which continue to weigh on NIMs, although the stock has been reducing steadily and is likely to decline further over the medium term. Additionally, while the bank has made progress in building a granular retail franchise through growth in retail liabilities and retail disbursements, the benefits of these initiatives are yet to be fully reflected in on-book retail asset growth and earnings stability. List of Key Rating Drivers Strengths • Potential strategic benefits from SMBC transaction • Improving asset quality metrics amid benign credit environment • Continued traction towards granular asset mix • Continuous improvement in deposit profile amid competitive environment • Adequate capitalisation Weaknesses • Modest profitability; likely to improve on decreasing share of low-yielding assets Detailed Description of Key Rating Drivers Potential Strategic Benefits from SMBC Transaction: SMBC acquired a 24.2% stake in YBL in September 2025, which it further increased to 24.9% by end-1QFY27. The transaction is likely to strengthen YBL's strategic positioning, governance framework, and business profile. It also provides a platform for deeper collaboration in corporate banking, transaction banking, treasury services, and cross-border banking solutions, particularly benefiting from Japan-India trade and investment flows. Furthermore, the strategic partnership could improve the bank's funding profile and enhance its competitive positioning over the medium term. The appointment of two SMBC nominee directors on YBL's board is likely to further strengthen governance and oversight. Ind-Ra expects SMBC to provide help in franchisee building and potential support during periods of stress, if required. Improving Asset Quality Metrics amid Benign Credit Environment: YBL's asset quality has continued to improve, with the GNPA ratio declining to 1.3% and the NNPA ratio to 0.2% at end-1QFY27 (FY26: 1.3% and 0.2%; FY25: 1.6% and 0.3%, respectively), while the PCR improved to around 82% (82%; 80%), providing comfortable provisioning buffers. The improvement has been driven by moderation in incremental stress and continued strengthening of the underlying loan portfolio. Early delinquency indicators also remain comfortable, with the combined SMA-1 and SMA-2 book at around 0.9% of advances. Furthermore, retail asset quality trends have improved, with retail slippages moderating from the elevated levels over the past few years, resulting in lower credit costs and reduced earnings volatility. Consequently, the bank has maintained low credit costs while strengthening provision coverage. Ind-Ra believes YBL's asset quality is likely to remain stable over the near term, supported by healthy provisioning buffers, contained delinquency indicators, and improving diversification in the portfolio, although the performance of its expanding retail portfolio is a key monitorable. Continued Traction towards Granular Asset Mix: YBL continues to improve the granularity of its portfolio, especially retail advances. As such, the share of its retail advances in total advance declined to 44.6% at end-1 QFY27 (FY26: 46.1% ; FY25: 48.9%), mainly due to a moderation in retail loan growth to 6.9% yoy in 1QFY27 (FY26:4.7%; FY25:14.5%), led by the bank's calibrated growth strategy and the run-off of old retail assets. The bank has also adopted a more cautious underwriting approach in select retail segments, particularly unsecured products, to safeguard asset quality. Despite the moderation in on-book growth, retail disbursements increased 27.5% yoy in 1QFY27, indicating healthy underlying business traction. The bank aspires to maintain a retail-wholesale mix of around 50:50. Ind-Ra believes the increasing emphasis on granular retail assets is likely to strengthen p [Showing first 8,000 characters — download PDF for full document]