India Ratings has affirmed private lender Yes Bank's long term issuer rating at “BBB” reflecting adequate capital levels to withstand expected stress on book and improving deposit profile. The outlook is stable.
The bank's common equity tier-1 (CET-1) stood at 11.6 per cent at the end of Q1FY22 (peak in FY21 was 13.6 per cent). It carries deferred tax assets of Rs 6,400 crore, that have been reduced from the net worth to arrive at the CET-1.
As the assets against which provisions are made get written off or sold, the agency believes the deferred tax assets would get utilised