Yes Bank share price hit 15 percent lower circuit in the morning trade on BSE on March 25 even though a day earlier ICRA upgraded the stock's bonds and other financial instruments while placing it on rating watch with developing implications.
The upgrade was done on the bank's Basel III compliant bonds, infrastructure bond programme, certificates of deposit programme and short-term fixed deposit programme.
ICRA said the rating upgrade factored in the removal of the moratorium, which was imposed on Yes Bank by the government, restricting payments to its depositors and creditors. The moratorium ended March 18.
ICRA highlighted that the bank had witnessed high slippages from the stressed book and recognised slippages until March 14, 2020, in the Q3FY2020 results, for which it made accelerated provisions in its Q3FY20 results, leading to the depletion of its capital ratios.
After the equity infusion and write-down of the AT-I Bonds, Yes Bank’s capital ratios were likely to improve with CET-I and Tier I of 7.6 percent and 7.8 percent, respectively, and CRAR of more than 9 percent, ICRA said.
On March 19, rating agency CRISIL had assigned an A2 rating to Yes Bank's Rs 20,000-crore Certificate of Deposit programme.
"Instruments with this rating arc are considered to have a strong degree of safety regarding timely payment of the financial obligation. Such instruments carry low credit risk," CRISIL had said in a statement.
Shares of Yes Bank were traded at Rs 30.50, down 12.98 percent, at 1015 hours.
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