YES Bank: Why investors should not be taken in by rating upgrades

At current valuations, the lender’s stock trades at a premium to IndusInd Bank and RBL Bank, leaving little room for error at current multiples

Topics

YES Bank | Banking sector | Compass


Hamsini Karthik  | 
New Delhi 

From being placed under moratorium in March this year, to quickly having a new management team that has proved effective on many counts – arresting the run on deposits, bolstering capital adequacy and chartering a new growth strategy, the past six months have been arduous but fruitful for YES Bank. It has even repaid in full the special liquidity facility (Rs 50,000 crore) availed from the Reserve Bank of India (RBI).

Nearly five rating agencies, including Moody’s have upgraded their ratings on various facilities of the bank in about a month’s time. The follow-on public …

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First Published: Wed, September 16 2020. 18:13 IST

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