YES Bank to raise up to Rs 4,000 cr through tier-II bonds

Private lender YES Bank plans to raise up to Rs 4,000 crore through tier-II bonds, for better capital adequacy and to support business growth.

India Ratings has assigned an 'AA+' rating with a stable outlook for the proposed offer. The rating factors in the bank's ability to manage credit risk, a reasonably large and expanding franchise, sufficient levels of capitalisation after equity infusion and improved profitability buffers.

The stable outlook reflects an expectation that any deterioration in asset quality would be adequately absorbed by operating profits without impairing Tier-1 capitalisation (13.8 per cent ratio in June), said India Ratings.

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