Shares of YES Bank were trading higher in Fridays trade after the private sector lender received rating upgrade from CARE Ratings for multiple instruments.The scrip was trading 1.08 per cent up at Rs 352.55 at around 2.15 pm (IST), while the BSE Sensex was up 0.54 per cent at around the same time.This upgrade reflects YES Bank's robust financial performance, creditworthiness, and increasing share of Current Account Savings Account (CASA) as well as retail deposits, YES Bank said in a release.Global brokerage firm Jefferies retained Buy on YES Bank with a target price of Rs 440.
YES has had two favorable developments - last night its credit rating was upgraded to 'AAA' for the first time by CARE Ratings, and a few days back it received a licence from Sebi to run a mutual fund.
The former benefits incremental borrowing cost by about 30-40 bps and helps the bank compete on better terms and could be NIM-accretive, while the latter is another cog in the wheel in its retail journey, Jefferies said in a release.Speaking on the rating upgrade, Rana Kapoor, MD CEO of YES BANK said, "This rating upgrade will result in a further reduction in our cost of borrowings going forward, and further widens the depositors, stakeholders universe of YES Bank."