Moody's asserts Yes Bank's ratings
Published: Sep 20, 2018
By TIOLCORPLAWS News Service
MUMBAI, SEPT 20, 2018: A day after RBI curtailed term of the promoter chief executive Mr Rana Kapoor, the Moody's Investors Service Thursday affirmed the ratings of Yes Bank.
The rating agency had also maintained the outlook on the ratings as stable.
The global rating agency said in a note that the Yes Bank's profitability is strong, and Moody's expects that the bank can maintain low credit costs over the next 12-18 months. It further added that the growth in both the interest and non-interest income would help the city-headquartered bank maintain "solid profitability".
The agency warned that while the bank's current asset quality metrics are strong and superior to that of peers, its "aggressive growth strategy poses asset risks". The overall issuer rating, accordingly continues to stand at Baa3, it said, adding that all the other ratings on the bank had been affirmed.
Private sector bank chiefs are allowed to continue holding their posts till the age of 70. In August, the bank board had given a three-year extension to Kapoor and sought the central bank's go-ahead for the same.
The bank had been found to have under reported non-performing assets (NPAs) by over Rs 10,000 cr for two consecutive years.
