The rating agency Moody's has also given relief to the Yes bank after the government's positive efforts to protect Yes Bank. Moody's has given positive outlook for the Yes bank from earlier negative outlook given on March 6, 2020.
Moody's has modified the rating after seeing a plan by the RBI for restructuring of the Yes Bank. It may be noted here that the withdrawal limit set for Yes Bank's depositors will also be removed from March 18, 2020. Since September 2019, Yes Bank deposits have been declined by about 34%. As said earlier, Moody's has downgraded rating of Yes Bank on March 6, 2020.
Yesterday, Moody's Investor Service has increased the rating of Yes Bank's Long Term Foreign Currency Issuer from CAA 1 to CAA 3 and Foreign Currency Senior Unsecured MTN Program from (P) CAA3 to (P) CAA 1. Moody's has positively outlined the bank's outlook on the hope that the financial position of the bank will improve as it is receiving extraordinary support from the Indian government. They believe that Yes Bank can increase its deposit base.
It may be noted here that even after SBI's investment, it will be very difficult to survive for Yes Bank in the market. Yes Bank believes its non-performing assets problem will continue into the next financial year 2020-21. However, the bank's appointed CEO Prashant Kumar is confident that after investing Rs 10,000 crore, the bank will be able to recover. Yes Bank alone has NPAs of Rs 21,000 crore for loans given to Reliance Group's Anil Ambani and Zee Group's Subhash Chandra.
0 Comments